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.
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.
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|
|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|
|NATIONAL RETAIL PROPERTIES||54.39||35.8||1.52||2.06||3.81|
|JOHNSON & JOHNSON||130.43||21.6||6.03||3.80||2.93|
|NORTHWEST NATURAL GAS||72.03||30.5||2.36||1.90||2.72|
|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|
|STANLEY BLACK & DECKER||147.12||31.3||4.70||2.76||1.87|
|CALIFORNIA WATER SERVICE GROUP||54.31||44.2||1.23||0.79||1.49|
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