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Wed. Oct. 31, 2007

Dividend Stock Holdings

Presented below are my dividend stock and ETF/CEF holdings. This is not a recommendation to buy these securities. I have classified some of the listed securities as hold, thus I am neither buying or selling. While for other securities, I am waiting for the appropriate exit point. For all the remaining, I am actively buying. Disclaimer: Before buying or selling any stock or ETF/CEF you should do your own research and reach your own conclusion. See my Disclaimer for more information.

Click here to view my Pocket Change Portfolio Holdings.

Click here for a full page view.

RQ is the risk/quality rating based on S&P’s Qualitative Risk Assessment and Quality Ranking. Click here for a more complete description.

Stocks highlighted in gray above are those that I have put “On The Shelf”. If a security is not performing at the desired level for additional purchases, but is not performing badly enough to warrant a sale, then I will put it “on the shelf”. By that I mean it will be set aside within my income portfolio with no additional purchases made until its outlook improves or deteriorates to the point it should be sold.


21 Responses to “Dividend Stock Holdings”

  1. Nirav says:

    I am trying to diversify into dividend paying stocks. Can you recommend a good dividend paying stock that you feel is the best to buy at this moment. I will ofcourse do my own research too but would greatly value your opinion. I was considering buying USB.

    Thanks!!!

  2. Dividends4Life says:

    Nirav: If I was just starting out, risk averse and buying today, I would purchase AFL, JNJ, USB & GE.

    Best Wishes,
    D4L

  3. nirav says:

    Thanks Dividends4Life. I am preparing a list of stocks that I am considering at http://dividendpirate.com/2008/06/05/stocks-in-my-radar/
    I will give you a shout out with the stocks that you recommended on my website.

  4. stan says:

    dEAR DIV4LIFE jUST DISCOVERED YOUR SITE AND AM VERY EXCITED.i HAVE LEFT BUSINESS AND NOW WILL NEED INCOME.I WAS SURPRISED AT YOUR INCREASE IN ACAS.i HAVE WATCHED IT SINCE 12/07 . nO PURCHASE YET.iS THERE DD ON THIS? IT SEEMS TO HAVE A HIGH PAYOUT RATIO.
    tHANKS FOR A GREAT BLOG

  5. Dividends4Life says:

    Stan: ACAS is not your typical dividend stock. It is in my risky category. As the price drops, they continue to raise their dividend which pushes the yield up. ACAS is like a RIET in it does not pay taxes, but is required to payout 90% of it earnings as dividends, thus the high payout ratio. thanks for reading Dividends4Life.

    Best Wishes,
    D4L

  6. sirbeef says:

    No Frontline (FRO)?
    What’s your take on it?
    I’ve owned it the last couple years, and it’s been a goldmine, albeit volatile when it comes to daily price.

  7. Dividends4Life says:

    Sirbeef: For tax reasons i don’t invest in master limited partnerships.

    Best Wishes,
    D4L

  8. Anonymous says:

    What to do with BAC…
    Recs

    7
    September 22, 2008 – Comments (8) | RELATED TICKERS: BAC , MER , USB

    Six weeks into the US-HYP and we’re faced with a portfolio reassessment issue — what the heck to do with BAC.

    After the recent purchase of MER (which will be paid for in BAC stock), income investors have to be concerned about the stability of the hefty dividend. And they should be. BAC CEO Ken Lewis told Maria Bartiromo that “all options are on the table” at the October board meeting, including a dividend cut.

    The fact that MER could be a great acquisition and earnings driver for the long run matters little to HYPers since our primary concern is dividend growth. If BAC has to slice the dividend to pay for MER, the stock has to be reconsidered for inclusion in HYP.

    The concern here is that because BAC will be paying for MER in stock, they’ll have to spread the current dividend out over more shares. To maintain the current dividend yield, BAC would have to add to their current dividend budget. That’s highly unlikely. Fortunately, MER brings with it its own dividend history, which could conceivably reduce BAC’s burden, albeit not very much (last year BAC paid out $12b, MER about $1.9b).

    After reviewing BAC’s new reality, I now expect there to be a cut, though not a WB-esque slash and burn. BAC is a member of the Dividend Aristocrats, meaning it’s raised its dividend for more than 25 consecutive years, so there will be ample pressure on Lewis and the board to keep the dividend cut reasonable. The market could forgive a reasonable cut here given all that’s happened in the industry. But what’s reasonable? The average yield on large banks is about 4.5%, so I would expect nothing less than that after the October board meeting. Still good, but definitely not the 8.3% we purchased and hoped for in HYP.

    At this point, it’s a wait-and-see on BAC for this portfolio. If the cut brings the dividend yield below 5%, I’ll entertain replacements. Any recommendations?

  9. Dividends4Life says:

    I have been following this closely. Needless to say I was not happy with the MER acquisition. It still doesn’t make sense to me. We’ll see where it takes us.

    Best Wishes,
    D4L

  10. Randy says:

    what would be a low cost good div. paying stocks ie if a stock was 20.00 i could only be able to purchase 10 of them and it costs me 10.00 a trade so i’m looking for some cheap price stocks with good div. pay out thanks

  11. Dividends4Life says:

    Randy: I am not licensed to give specific advice. However, I can tell you what I do, First I don’t look at stock price that is not a meaningful metric in and of itself. I buy in a minimum of $1,000 blocks to spread the $7 commission I pay (0.7%).

    When my kids start investing, I will have them look at Zecco which offers $0 commission with a $2,500 balance. I will recommend to them to buy some of the “safer” traditional dividend stocks first like JNJ, PG, UTX, etc. as a foundation.

    Best Wishes,
    D4L

  12. Dividend Growth Investor says:

    D4L,

    Call me frugal, but $7 per $1000 invested sounds like a high price to pay? Have you tried investing through Zecco? I am a big fan of their 10 zero commission trades/month.

  13. Dividends4Life says:

    DGI: I considered Zecco, but couldn’t justify the pain of changing – I still remember moving from TD Waterhouse to Scottrade. Other than paying a commission, I have been pleased with Scottrade, their services and research material.

    Best Wishes,
    D4L

  14. Anonymous says:

    Re: “While for other stocks, I am waiting for the appropriate exit point.” It would be helpful to know which stocks were on the exit list, if that is information you’d be willing to share. Thanks. Very nice site btw.

  15. Dividends4Life says:

    Anon: Currently none are on the exit list. The ones that are on the shelf could end up there. The point of the statement is this is not a buy list, facts and circumstances are always changing.

    Best Wishes,
    D4L

  16. Anonymous says:

    D4L,
    Nice job. Good list and I like your analysis. I own GE, PFE, USB, BBT CTL as well but also have picked up a few shares of DOW and ATG. Wonder what you think of them? Know there are difficult times for the chemicals but expect them to pull through.

    Thanks,
    skyraider

  17. Dividends4Life says:

    Skyraider: I have Pre-Screened DOW in the past and it never made it to a full valuation. With a RQ of B5, it is a little more risky than what I want at this time. Also its dividends were flat in 2003-2005 and 1999-2000.

    As for ATG, I had not looked at it before. With a RQ rating of A2, it has promise from a risk standpoint. A quick pre-screen shows it has increased its dividend for 4 years, but its NPV of MMA Diff is only $4,327. I like to see $10,000 for a company that has increased its dividend less than 10 year.

    Best Wishes,
    D4L

  18. Anonymous says:

    Thanks for the link for the full page and could this one be done also
    thank you

  19. Anonymous says:

    D4L,

    Great list, thank you for posting. I’ve got a question regarding my own list I track. I’m 25 and have been maxing out my IRA contribution for the 3rd year now. I’ve got my current shopping list of PG, MCD, JNJ, VFINX. However, with only the $5000 to use, is it better to spread out the $5000 evenly across 4 picks, or better to put 50% towards 2 picks, and keep an eye on the others for the following year?

  20. Anonymous says:

    To clarify above, it is a Roth IRA. Thanks again.

  21. Dividends4Life says:

    Anon: As noted in my disclaimer, I am not a licensed investment professional, so I can’t give advice. I can only tell you what I would do. When I buy stocks I like to keep the commission below 1%. Since my broker charges $7/trade I never buy a block smaller than $1,000; I prefer to buy larger blocks to spread the commission thinner. If I were using Zecco, I would probably spread the investment more.

    Best Wishes,
    D4L