Before I ask my question, a little context about my investment portfolio: everything is pretty much in target funds or in index funds. I have a 60/40% stocks/bonds(cash) allocation which is on the conservative side given my age because my risk tolerance is low.
In 2016, I opened up a Robinhood account to buy stocks of companies that I liked for fun. $100 here. $200 there. Occasionally $400.
I don't consider my Robinhood acount to be part of my investment portfolio and I also don't have any particular strategy except to buy stocks that I think are undervalued and accrue relatively risky, but decent quality dividend stocks.
With that out of the way, here's my question.
Does anyone in this community have a portfolio consisting of high paying dividend stocks? If so, what type of analysis do you conduct and can you share some of your holdings?
I know stocks like T pay solid dividends. There are tons of utility stocks that do the same, however I'm interested in stocks that pay above 7%. I understand that most of the stocks with high dividends are a fools trap because the company may lower the dividends right away, but I found couple that I thought were strong not only in fundamentals, but in the dividend yield.
Sunoco (SUN), 2.72B Mrkt Cap, 12% dividends.
New Residential Investment (NRZ), 6.25B Mkt Cap, 14% dividends.
Independent Realty Trust (IRT), 1.07 Mkt Cap, 8% dividends.
Again, my Robinhood again is not part of my retirement strategy. However if I can generate a consistent stream of a thousand per month through dividends while minimizing the risks as much as possible, I'd be more than happy.
Thanks in advanced and cheers.
I have recently gotten interested in high dividend stocks also. I came across this one from a money manager that my dad uses. Stock is called UTF and pays around 7+% and pays monthly. I have owned it now for about three months. Try this link: https://finance.yahoo.com/quote/UTF/history?period1=1080288000&period2=1564556400&interval=div%7Csplit&filter=div&frequency=1d
My self-developed system, with VERY little empirical evidence to back it up is this: Search for high dividend stocks. Here's one place: https://www.suredividend.com/ . Find some that look good and go to finance.yahoo.com and look up the stock. Go to a chart of the stock and look at a long term, maybe 5 or so years. I want to make sure the price doesn't flop around like a fish on a dock. Back on the summary page, it will have the dividend yield. Go to the "historical data" tab and look at the history of the dividend payment. I found on the UTF page, above, the payout was very consistent with even a bonus in December a couple times.
So basically, I'm just looking for a reasonably consistent price, at least for recent years; and a reasonably consistent dividend payout, at least for recent years. Then if you follow it at least every month or so you can see if either the share price or the payout is tanking.
I would LOVE to have someone critique my ideas because I don't know what I'm doing, it just sounded a tiny bit logical to me. Your thoughts?
Here's what I have in the portfolio right now for dividend purposes:
T, VZ, JPM, BAC, NLY, DOW, KTF, AINV, NYCB, O, WBA, ARCC, BACPRK, JPMPRD, KHYAX, USBPRP
Goal is steady yield and cash flow. Some opportunity for capital gains as well. I also balance it with growth stocks and cash for special opportunities.
What I do is I have a watchlist tab in my brokerage with all the dividend aristocrats. I monitor the percentage change of the current price versus the 4 week price. Anything that goes -10% catches my attention.
right now CAT, EMR, GPC and BEN are on my radar
I've owned AT&T, O, OHI for along time. They've been great.
The funny thing is, my bond funds and individual muni bond in California are going bonkers now. I was expecting like a 3-4% return, but they are up 15% - 22% for the year now as rates plummet.
It just goes to show you that you never know. Don't look down on bonds folks!
Blockchain / cryptocurrency investment for payments platform for goods and services - Theodor / $0.0375 Reg. A+ or cheaper for Series A.
That the speculation out of crypto, and into the implementation stage for the mass consumer market.
S.E.C. qualified JOBS Act - Reg. A, exempt offerings, CIK #s 0001579586, and 0001640170 at authorized asking price of $0.0375. Authorized to accept crypto in payment for shares.
Series A - U.S. and Series A - London preferred convertible to common with dilution also available.
Not an offer to sell shares in any U.S. State, except New York.
I've mostly shied away from stocks with extraordinary dividends because of the risk of them needing to lower the dividends (which almost always crashes the share price). I've just found it much easier for myself to grow the size of my brokerage account through the magic of capital appreciation vs. dividends.
That said, I do own British Petroleum solely for the 6% dividend (but the capital appreciation has been minimal). I also bought QCOM earlier this year when it dipped into the $40's and the dividend was a consideration (I recall it was around 3% at the time). However, it has doubled in value while the dividend has not increased yet so the dividend has taken a hit in terms of current returns. I'm 56 years old now so I should probably get more into dividends but it's difficult because I find it so much easier to make more by focusing on anticipated capital gains.
I'm weary of the CEF space, the dividends look nice but the fees are brutal. UTF yields just under 7% but you're paying a 2.55% fee, not to mention taxes. I think there may be better options. Would love to hear any other points on the CEF space.