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How To Retire: Dividend Champions In The Time Of Coronavirus

Published Sat, 25 Apr 2020 07:01:00 -0400 on Seeking Alpha

We take a look back at the dividend champions portion of Ted and Mary’s retirement portfolio.
How well have the 29 dividend stocks Mary chose held up in the face of this pandemic?
Mary deserves credit for constructing a well-diversified portfolio of income-producing stocks that perform just as a retiree would want them to in times of crisis.
If you're building an income portfolio, you may want to supplement it with preferred shares. Preferred shares offer high yields and often have less volatility in their share prices.
Over the last two months we've seen higher levels of volatility which are enabling investors to amplify their income while catching additional upside. The technique simply requires careful switching between preferred shares from the same REIT.
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You might remember Ted and Mary, the hypothetical retirees we introduced Seeking Alpha readers to back in June 2019, in How To Retire At 62 With $1.25 million. Mary tasked herself with constructing the dividend champions segment of the couple’s portfolio. She selected 29 dividend champion stocks using the following rationale:
Dividend champions will have a high probability to continue to raise their dividends. The income should continue to go up for this portion of Ted and Mary’s portfolio. The companies have growth potential. Though the yields may not be as high as they need, the equity they own in the companies should go up. In the event of a market panic, these companies should do better than the overall market for a few reasons. One, the dividends will still be coming in when the stock falls. Two, these companies overall have a history of raising dividends, even through multiple recessions. Three, large companies that have been around for a while have a better shot at withstanding a significant drawdown (emphasis added).
Ted should make dinner for Mary tonight. Bottom line.
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Here’s a look at Mary’s 29 dividend champions, with a... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
TWO HARBORS INVESTMENT 13.28   0.0 -2.81 1.60 12.02
ALTRIA GROUP 44.46   13.2 3.36 3.36 7.23
HELMERICH & PAYNE 40.76   0.0 -0.68 2.84 6.74
PHILIP MORRIS INTERNATIONAL 74.90   14.9 5.03 4.68 6.12
UNIVERSAL 56.35   15.4 3.67 3.04 5.56
EXXON MOBIL 71.98   17.3 4.15 3.48 4.83
VERIZON COMM 60.43   15.8 3.83 2.46 4.04
CHEVRON 121.42   15.7 7.72 4.76 3.91
NATIONAL RETAIL PROPERTIES 54.39   35.8 1.52 2.06 3.81
REALTY INCOME 74.49   56.9 1.31 2.72 3.69
3M 170.58   20.6 8.28 5.76 3.41
CONSOLIDATED EDISON 90.19   21.4 4.21 2.96 3.31
KIMBERLY-CLARK 133.58   25.8 5.18 4.12 3.14
EMERSON ELECTRIC 64.71   18.4 3.52 1.96 3.02
COCA-COLA 55.11   33.6 1.64 1.60 2.94
JOHNSON & JOHNSON 130.43   21.6 6.03 3.80 2.93
PEPSICO 137.29   15.2 9.02 3.82 2.81
NORTHWEST NATURAL GAS 72.03   30.5 2.36 1.90 2.72
BLACK HILLS 76.58   20.3 3.77 2.02 2.71
T. ROWE PRICE GROUP 118.12   14.9 7.95 3.04 2.58
PROCTER & GAMBLE 122.77   90.3 1.36 2.98 2.49
ESSEX PROPERTY TRUST 324.02   52.2 6.21 7.80 2.43
TARGET 108.94   18.0 6.04 2.64 2.43
MCDONALDS 212.15   27.9 7.61 4.64 2.21
SYSCO 77.72   24.3 3.20 1.56 2.03
CINCINNATI FINANCIAL 113.24   15.3 7.41 2.24 2.00
LOWES COMPANIES 113.88   35.6 3.20 2.20 1.91
STANLEY BLACK & DECKER 147.12   31.3 4.70 2.76 1.87
WAL-MART STORES 116.92   26.3 4.44 2.12 1.83
CALIFORNIA WATER SERVICE GROUP 54.31   44.2 1.23 0.79 1.49

TWO HARBORS INVESTMENT - TWO
TWO HARBORS INVESTMENT - TWO  


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