Published Mon, 07 Dec 2020 14:25:11 -0500 on Seeking Alpha
Seeking AlphaPortfolio StrategyHigh Dividend Yield Stock Watchlist For December 2020Dec. 7, 2020 2:25 PM ET|| Includes: AMGN, BK, BMO, BNS, CVS, DTE, GD, HAS, HBAN, JPM, LMT, LNT, MMM, MTB, NTRS, PEP, PFG, RCI, RY, SO, STT, TD, TFC, USB, VYMby: Dividend Yield TheoristDividend Yield Theorist Dividend Investing, Dividend Growth InvestingSummaryI present 28 High Yield Dividend stocks for consideration in December 2020.
A high yield strategy is ideal for generating a passive income stream.
Collectively, the 28 stocks on the watchlist were up 13.04% in November.
High yield dividend stocks are a great source of passive income and generally are less volatile than the broad market. A high yield strategy is ideal for someone who is already retired, nearing retirement or in a life situation where passive cash flow is of high significance. When you adopt this strategy, you have to be aware that you are foregoing potential capital appreciation. While your portfolio will still grow in value, over the long-term, a high yield strategy is not the optimal approach for capital appreciation. This has been proven through back testing and I will get into that later in the article. To reiterate, this strategy is geared to those who are looking to create a passive income stream. But if this income stream is intended to fund your current life expenses, you will want that income to be dependable, consistent and have the potential to increase in the future. By targeting growing, quality dividend stocks, that pay a high yield you can increase your chances of achieving that goal.
High Yield vs. Growth
Comparing the total return of a high yield ETF (VYM) and a growth ETF (VUG) over the last nearly 14 years shows the opportunity cost of choosing the wrong investing strategy. The total return, since January 2007 through November 2020, for the high yield ETF was 7.26% on an annualized basis. The growth ETF returned 12.24% over the same period, also on an annualized... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|BANK OF NOVA SCOTIA||56.20||11.2||5.02||2.70||4.79|
|BANK OF MONTREAL||72.60||10.2||7.15||3.10||4.33|
|ROYAL BANK OF CANADA||78.79||11.9||6.61||3.16||4.00|
|PRINCIPAL FINANCIAL GROUP||57.36||10.8||5.32||2.20||3.88|
|VANGUARD HIGH DIVIDEND YIELD ETF||89.75||0.0||0.00||0.00||2.79|
|BANK OF NEW YORK MELLON||46.31||12.0||3.85||1.24||2.71|
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