Readers of this space know that the primary focus of my income portfolio is to create ever-increasing income by investing in dividend growth securities. This means that often I will choose a lower yielding security with better dividend growth prospects over a higher yielding security. However, as one that values diversity, I also invest in some high yield securities. Here are some of the better performers, along with my life-to-date return:
Five High-Yield Positive Return Investments
16 Dividend Stocks Aspiring To Be A Champion
There are winners and there are champions in every walk of life. The difference is subtle, but very real. A champion is driven for success and will not let anything stand in its way. Some dividend stocks can be classified as champions. A bad economy, tight credit markets and a dark cloud of uncertainty are enough send some dividend companies running for the exit. However, these are the times that champions stand firm.
High-Yield Dividend Stocks: A Safer Approach
When people learn that I am an income investor, the reaction is often a desire to discuss high-yield investments. The uninitiated commonly confuse income investing with high-yield investing. The two are not the same.
High Yield, High Risk Dividend Stocks
It is not unusual after I publish a list of stocks to get a comment or two asking why those stocks and not these stocks. Often the real thrust of the question is why buy those low yield stocks when you can buy these high yield stocks. The answer involves risk and its management.
Are REITs and Utilities Good Dividend Investments?
Dividend stocks. When you hear those two words what do you think of? Many people think of widows and orphans, along with their stereotypical investment in utility stocks. While others may think of maximizing income by finding the highest yielding stocks available like Real Estate Investment Trusts (REITs). But are utilities and REITs really good dividend investments?
Nine Companies Bucking The Trend And Raising Dividends
What if you don’t want to spend your retirement managing and worrying about your portfolio? Put it on Auto Pilot, specifically on a Dividend Investing Auto Pilot. Dividends from a quality, well-diversified portfolio are much more predictable than capital gains and best of all, they are passive. You don’t have to do anything, they just show up in your brokerage account each quarter. Inflation? Not to worry, the good companies routinely raise their dividends well in excess of the inflation rate.
Refining Risk Measurement Of Dividend Stocks
Earlier we looked at the RQ (Risk/Quality) ratings of individual stocks. This was a good start to help us understand the risk profile of a stock, and our dividend stock portfolio, but it didn’t quite go far enough. Since then I have continued to measure, calculate and calibrate a more comprehensive measure of risk. I sill use the RQ rating as 50% of the new measure, but I have added these two important indicators of risk:
Inverted Yield On Cost Curve
A yield curve is the relationship between yield and maturity. In a “normal” yield curve yields rise as maturity lengthens. When yields drop as the term lengthens, it is referred to as an inverted yield curve. A Yield On Cost (current dividend/basis) curve, like a yield curve, should increase as you move forward in time.









Increasing Dividend Yield Part II: REITs
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