Dividend Portfolio for Beginners (or in my case starting over)

Cool sunsets in June
In June I started my account consolidation project to take advantage of a Rewards Program offered by Bank Of America & Merrill Lynch.  I have one account, my mortgage, to change in my bill pay system and then I can shut the door on my old brick & mortar bank.    In the process I took advantage of the great market we have had for the past 5+ years and sold all stocks in my IRA.    The goal being to create additional capital to invest and start that dividend machine over again with the best bargains meeting the Dividend Family Guy stock criteria.

I sat on the cash for what seemed like forever waiting for a good day to buy.  As luck would have it Brexit happened and I was actually paying attention to the news.  I figured I would watch the markets the day the vote happened and wish for the best (big drops across the board).  For most people days like that are not good as they watch their money vanish.  For those wishing to pursue dividend growth investing, it is like winning the lottery.

I bent my screen a little and accepted some stocks that weren't quit yielding 3% at the time but still are great stocks to own.  I didn't plan on it but oddly enough it is a balanced portfolio according to my Quicken Portfolio X-Ray data (from Morningstar.)  It compares my portfolio with the S&P 500 as a benchmark.



In my list below at the bottom are some sums and averages for the various data points I chose to show you all.  I do believe in dividend growth (and looked at the chowder rule when buying these).  However, I believe initial dividend yield is a key factor to starting the compounding snowball.  It is easier to pick a long paying dividend growth stock at 3%+ then guess at which 1% yielder will continue to grow and get to the level these guys are at (and with staying power.)



The new portfolio has boosted my monthly dividend income by $57.  Previously I was averaging $139 from my IRA and now my forward dividend income will be $196 per month.  This is after paying any fees for selling stocks and transferring them to my new IRA.  Also not that it matters too much for DGI'ers but this portfolio is already up 3.76% in a little over a month.  Not to bad for those slow growing mammoths.

I know there are some slow growers in there but what do you all think of my picks?  Good starters?  Would you recommend them to beginners?

Happy saving and investing,
Dividend Family Guy

Comments

  1. Pretty great list of companies you have here. I like your thinking about starting your portfolio ~3% to kick start the compounding rather than hope some of the low yielding stocks continue their high growth rate. I am new to DGI so I look forward to following your journey and browsing your website some more!

    ReplyDelete
    Replies
    1. Thanks Millennial Budget. There are allot of great dividend screens out there. SureDividends has a good one as well as pretty much any dividend blogger. Everyone has there own style but the goal is still the same. Let the dividends roll in!
      Cheers,
      DFG

      Delete
  2. Solid, DFG. I like a tilt towards current yield in the current environment so I think you nailed it.

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    Replies
    1. Thanks Raptor. Current yield is a fact, future growth a hope. Thanks for stopping over.
      Cheers,
      DFG

      Delete
  3. Nice buy list DFG, really good strategy to make use of any volatility - you nailed the timing! Many of them should be good for many years to come, awesome job.

    Tristan

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    Replies
    1. Hey Tristan,
      I attribute the timing mostly to luck. Just had cash at the right time. I have learned it is always good to keep some buffer/cash at hand for days like that.
      Cheers,
      DFG

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  4. Hi DFG,
    I like the list, especially as I bought MCD recently. Congrats on your recent re-org and it looks like a better foundation going forward!

    I'm still a little concerned about Emerson, although I'm glad that they decided to sell and not spinoff the former Network Power division (where I used to work). I don't need another stock showing up in my portfolio! I just hope they can find something good to do with the proceeds - I'm quite tempted to sell to be honest but the current dividend is certainly nice.

    Best wishes,
    -DL

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    Replies
    1. Yeah I don't think their dividend is going anywhere. As long as it keeps growing I will be happy. Just the other day I noticed they have an office down the road from my work. Small world.
      Later,
      DFG

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Investment Disclaimer

This webpage is provided for general information only and nothing contained in the material constitutes a recommendation for the purchase or sale of any security. If you have any questions please feel free to contact me at dividendfamilyguy at gmail dot com.