Best dividend yielding stocks

[Anonymous]

What dividend yielding stocks are folks holding these days? Our portfolio is/has been comprised of growth stocks for the last 30 years, and now that I am looking to possibly retire early (I'm 52 and DW is 49) in the net year or so, I am looking to transition our a portion of investment holdings to also include a somewhat significant share of dividends. Our investment portfolio is currently at ~$4.3m mostly in individual holdings and some ETFs. Ideally we would like to have the dividends provide at least in the range of $50k-75k of income per year, thereby allowing us to avoid having to draw down too much on the principle investments (all significant LT capital gains). We've done all of this ourselves to date, and have not used a financial advisor - I've been leery of paying someone a %of my assets for things that I can do pretty reasonably myself (and we've been pretty successful all things considered).

I would defer drawing on the pension for another 10-13 years - and which currently stands at about $3m (and would continue to grow on investment allocation but w/o any additional contributions once I retire and before I draw on it).

Grateful for any advice folks here might have. Thanks!

[Anonymous]

How do you get a 3M pension?

With this pension combined with the 4.3 I would look at dividend stocks that Berkshire holds. We finally threw in the towel on AT&T, but if you buy low and feel that they can survive they pay a very high dividend.

Another strategy is a municipal bond ladder, for a portion of the 4.3, which is income tax free.

[Anonymous]

If you have a 4 million portfolio, you should be able to easily get 100k in dividend income. A stock with a 3% dividend provides 30k in income for every million invested.

Following/copying the Berkshire portfolio isn’t a bad idea. It’s not an apples to apples scenario since Berkshire negotiates prices and dividends. Half of Berkshire’s holding are in Apple. Great stock, but dividend is only .50 for the common investor. Not sure what it is for Berkshire.

[Anonymous]

Anonymous wrote:If you have a 4 million portfolio, you should be able to easily get 100k in dividend income. A stock with a 3% dividend provides 30k in income for every million invested.

Following/copying the Berkshire portfolio isn’t a bad idea. It’s not an apples to apples scenario since Berkshire negotiates prices and dividends. Half of Berkshire’s holding are in Apple. Great stock, but dividend is only .50 for the common investor. Not sure what it is for Berkshire.

+1. I was confused about OP’s math

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you have a 4 million portfolio, you should be able to easily get 100k in dividend income. A stock with a 3% dividend provides 30k in income for every million invested.

Following/copying the Berkshire portfolio isn’t a bad idea. It’s not an apples to apples scenario since Berkshire negotiates prices and dividends. Half of Berkshire’s holding are in Apple. Great stock, but dividend is only .50 for the common investor. Not sure what it is for Berkshire.

+1. I was confused about OP’s math

I was thinking OP didn't want to convert all the way from growth to dividends.
OP--if you have any money at Fidelity I would use their stock screener tool to research stocks and their dividend view for your portfolio. I have done pretty well with setting that at the yields I'm looking for and then reviewing some of the research on it.

I have tilted towards growth stocks, so I go value-oriented for my dividend buys.
For Value/value-ish dividend buys, Jefferson Financial research is often the analysis I go to further and then maybe Ford Equity. If they don't rate it as a 1 or 2 buy, I don't do further research (you can also just screen for ones they list as a buy). Some people use multiple research orgs as a check and I usually do that too. I still always drill into the numbers myself a bit. If you're assembling a long-term stable-ish portfolio, you want to see a consistent history of dividends-- stable or growing, a good dividend sustainability metric, and a reasonable price for the stock. Industry diversity is important--you don't want to end up over tilted towards Industrials, Railroads, Health Care, Utilities, etc. as they are cyclical or subject to certain economic pressures. Even though you're focused on the income stream, you still need to think about the assets overall.

If this is more than you want to do, I also own Vanguard Dividend Appreciation Index etf and use that as my benchmark comparison.

Right now looking at my watchlist, if I wanted to buy more individual stocks without doing further research I would buy

BMY
ARC

as they are both at prices I currently like. But they might not make sense in your portfolio.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you have a 4 million portfolio, you should be able to easily get 100k in dividend income. A stock with a 3% dividend provides 30k in income for every million invested.

Following/copying the Berkshire portfolio isn’t a bad idea. It’s not an apples to apples scenario since Berkshire negotiates prices and dividends. Half of Berkshire’s holding are in Apple. Great stock, but dividend is only .50 for the common investor. Not sure what it is for Berkshire.

+1. I was confused about OP’s math

I was thinking OP didn't want to convert all the way from growth to dividends.
OP--if you have any money at Fidelity I would use their stock screener tool to research stocks and their dividend view for your portfolio. I have done pretty well with setting that at the yields I'm looking for and then reviewing some of the research on it.

I have tilted towards growth stocks, so I go value-oriented for my dividend buys.
For Value/value-ish dividend buys, Jefferson Financial research is often the analysis I go to further and then maybe Ford Equity. If they don't rate it as a 1 or 2 buy, I don't do further research (you can also just screen for ones they list as a buy). Some people use multiple research orgs as a check and I usually do that too. I still always drill into the numbers myself a bit. If you're assembling a long-term stable-ish portfolio, you want to see a consistent history of dividends-- stable or growing, a good dividend sustainability metric, and a reasonable price for the stock. Industry diversity is important--you don't want to end up over tilted towards Industrials, Railroads, Health Care, Utilities, etc. as they are cyclical or subject to certain economic pressures. Even though you're focused on the income stream, you still need to think about the assets overall.

If this is more than you want to do, I also own Vanguard Dividend Appreciation Index etf and use that as my benchmark comparison.

Right now looking at my watchlist, if I wanted to buy more individual stocks without doing further research I would buy

BMY
ARC

as they are both at prices I currently like. But they might not make sense in your portfolio.

Adding, ARC looks financially solid but just missed its estimate so it's a good price--but there might be other unknowns there.

[Anonymous]

OP here - many thanks to the PPs for sharing your thoughts, very much appreciated.

To answer a couple of the questions, I am not trying to turn over the entire portfolio but just a portion of it so that we can start to benefit from a stream of income. I am in the very early stages of figuring out which of the longer term holdings we should get out of vs, which ones to hold onto for the foreseeable future.

We don't have any accounts with Fidelity but appreciate the advice to look there (our accounts have been with TDA and now Schwab). We are definitely heavy in the tech sector, so diversification will be important as PP@14:52 noted.

[Anonymous]

Sounds like you’ve done well with growth stocks. Why don’t you just take some capital gains on those as needed? Why the need to be sent forced dividends when you can simply realize income from your existing holdings efficiently on your own terms?

[Anonymous]

Dividend payers. Tobacco sector PM and MO. Energy XOM, DVN, and ENB. Utilities DUK. Healthcare MRK and AMGN. Financials RF HBAN Ally Citi bought in 2009 and during pandemic swoon. Food sector KHC MDLZ. Tech AVGO Telecom VZ

Some dividend payer ideas, some timely and a few not timely. You could use ETFs to get more diversification. Sectors out of favor today are Tobacco and most financials. MDLZ just reported great earnings and AVGO is my core Tech dividend payer. GL

[Anonymous]

SCHD.

[Anonymous]

I like UWMC (currently at 8 percent yield). The company is a SPAC and it was a family business with the CEO being a large stakeholder. To me, that suggests the divi won’t dry up. Also Verizon is a good prospect. SPOK also has been very good. It might be a good time to look at Ford too. Currently priced low.

[Anonymous]

Anonymous wrote:I like UWMC (currently at 8 percent yield). The company is a SPAC and it was a family business with the CEO being a large stakeholder. To me, that suggests the divi won’t dry up. Also Verizon is a good prospect. SPOK also has been very good. It might be a good time to look at Ford too. Currently priced low.

I'm the PP who posted I'm watching BMY and ARC--, my most recent large purchase was SPOK and it's done great. I'm not sure I would buy it now at its current priced, but maybe some. My one hesitation about VZ is the potential cost of the underground lead contamination. It could be massive. I have some and haven't sold, but am not adding because of that. Ford is on my watchlist too, though I tend to avoid car stocks.

[Anonymous]

Anonymous wrote:Dividend payers. Tobacco sector PM and MO. Energy XOM, DVN, and ENB. Utilities DUK. Healthcare MRK and AMGN. Financials RF HBAN Ally Citi bought in 2009 and during pandemic swoon. Food sector KHC MDLZ. Tech AVGO Telecom VZ

Some dividend payer ideas, some timely and a few not timely. You could use ETFs to get more diversification. Sectors out of favor today are Tobacco and most financials. MDLZ just reported great earnings and AVGO is my core Tech dividend payer. GL

DP. I am ashamed to admit I have MO and PM. I'm such a hypocrite because I hate cigarettes, but those dividend yields are great. If you don't have a problem with sin stocks, take a look at VICI and IIPR. Funny enough PP, I also have XOM, DVN, ENB and PXD. DVN has been a dog with poor management, and I would not advise purchasing that now. I chose ABBV and GILD over AMGN. Key and NYCB over HBAN. I wish I had DUK because I got slaughtered with NEP. Love, love AVGO for growth, but the yield is low. I wish AVGO stock would split. It ran up so damn fast. SPG and O are good stocks to take a look at OP. If all else fails, take a good look at JEPQ and JEPI.

[Anonymous]

If you can stomach an oil and gas stock, look at Petrobras. (PBR). Another stock worth looking at is ACV.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I like UWMC (currently at 8 percent yield). The company is a SPAC and it was a family business with the CEO being a large stakeholder. To me, that suggests the divi won’t dry up. Also Verizon is a good prospect. SPOK also has been very good. It might be a good time to look at Ford too. Currently priced low.

I'm the PP who posted I'm watching BMY and ARC--, my most recent large purchase was SPOK and it's done great. I'm not sure I would buy it now at its current priced, but maybe some. My one hesitation about VZ is the potential cost of the underground lead contamination. It could be massive. I have some and haven't sold, but am not adding because of that. Ford is on my watchlist too, though I tend to avoid car stocks.

Yes, it's been a very strong performer.