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Parking Cash In The Large Cap 5% Dividend Club

Published Wed, 20 Feb 2019 09:02:00 -0500 on Seeking Alpha

If you're looking for an investment idea how about parking some cash among a diversified group of large cap stocks that each yield over 5% in dividends. Having a section of your portfolio dedicated to dividend stocks can provide protection in volatile markets and generate an additional income stream. If you have time on your side, reinvesting the dividends so they compound is a powerful tool which can pay off in spades down the road. I prefer large cap companies with solid financials since this is a long-term strategy. My 5% dividend club among large caps consists of AT&T (T), BP PLC (BP), GlaxoSmithKline PLC (GSK), AbbVie Inc. (ABBV) and Kraft Heinz Co. (KHC). If you were to purchase an even amount of shares between each of these five companies, your forward yield would exceed 5%.
Industry Company Name Ticker Market Cap in Billions Share Price Annual Dividend Yield Telecommunication Services AT&T Inc. T $221.80 $30.47 $2.04 6.70% Oil, Gas & Consumable Fuels BP PLC BP $142.80 $42.29 $2.46 5.82% Pharmaceuticals GlaxoSmithKline PLC GSK $102.40 $41.24 $2.39 5.79% Biotechnology AbbVie Inc. ABBV $121.60 $80.52 $4.28 5.29% Food Products Kraft Heinz Co. KHC $58.10 $47.62 $2.50 5.25%
(Source: Steven Fiorillo) (Data Source: TD Ameritrade)
Generating monthly income from the 5% club
I have structured my personal dividend portfolio to generate income on a monthly basis. By coincidence these five companies also pay their dividends at different times, generating income... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
BP 36.21   13.7 2.64 2.44 6.64
ABBVIE 65.97   24.2 2.72 4.28 6.34
KRAFT HEINZ 25.33   0.0 0.00 1.60 6.33
AT&T 34.82   14.6 2.38 2.04 5.80
GLAXOSMITHKLINE 40.98   18.4 2.23 1.83 4.54