Looking to buy STOCKS that YIELDS HIGH DIVIDENDS consistently

[tripods68]

I need two to buy two stocks. What are your thoughts on these stocks.

Altria Group (MO) YIELDS 6.8%

Eli Lilly (LLY) YIELDS 5.4%

Verizon Communications (VZ) YIELDS 6.3%

Kinder Morgan Energy Partners (KMP) YIELDS 6.5%

DuPont (DD) YIELDS 4.4%


BP (BP) YIELDS 5.8% (price have gone done but i'm staying away completely from this stock)

[jIM_Ohio]

I need two to buy two stocks. What are your thoughts on these stocks.

Altria Group (MO) YIELDS 6.8%

Eli Lilly (LLY) YIELDS 5.4%

Verizon Communications (VZ) YIELDS 6.3%

Kinder Morgan Energy Partners (KMP) YIELDS 6.5%

DuPont (DD) YIELDS 4.4%


BP (BP) YIELDS 5.8% (price have gone done but i'm staying away completely from this stock)

Do you need the stocks to yield high now, in 5 years, or in 20 years?

My answers will change based on timeframe.

Most people I have asked about dividend portfolios tell me they yield north of 3% and usually have a few REITs kicking the yield up a notch.

Many also will tell me that have an ROI of about 10% on the yield, but the yield itself is not 10% (its 10% based on their own contributions only, but with DRIPs buying fractional shares, their ROI is higher than the yield).

for next 1-5 years, your stocks are as good as any
if you wanted good dividend payouts the for 5-10 years, look for companies with high cash which also have increased dividends moderately over last 3-7 years.

Phillip Morris and Microsoft both come to mind I think. Proctor and Gamble, GE, Bank of America and Citigroup also come to mind.

If you want 20+ years. use the previous group (MO, MSFT, PG etc...) and add more positions to it so the portfolio does not get more than 10% of its payout from any single stock.

[Broken Arrow]

Hmm, what's going on? And why specifically stocks for dividends? What about bonds or funds that generate dividends? More importantly, what's the purpose behind this and how does it fit into your portfolio? Are you using it to shelter from short-term market volatility or is this more of a passive dividend generation strategy?

I was just looking at bonds earlier, and Goldman Sachs had bonds that were paying at 5% and more, were call protected, and rated at least A and higher. It wouldn't mature until 2017 to 2023 though. But still, it seems like it's an option if you don't want to deal with stock market volatility.

Given the list, I'd probably pick MO and DD, but I admit that's also because I don't know LLY and KMP very well. VZ is well and good, but I don't personally care for telecom unless we are talking about AT&T or Sprint.

So, what's going on man? Is everything OK?

[tripods68]

JIM & BA,

My outlook is probably 5 years or less. I have some play money in our MMA account $10K that I can use to generate returns while reinvesting dividends. The rest of it is our EF. So high paying yields to me is important. These stocks is what I have found that consistently paid their shareholders regardless of the ECONOMIC conditions quarterly. I won't be trading these stocks "in-and-out" regulary but rather approaching a "HOLD" strategy. It's purpose is to fund our yearly trip vacations, starting next summer 2011.

[JBinKC]

I would only buy Altria and wait for Dupont to fall to a point where it has a 5.4% yield.

KMP is OK and it would be my other choice if you had to buy now but I really don't like the limited partnership structure.


Total TOT yields over 6% it could be a replacement for BP if you want to have integrated oil exposure but note it has exposure risk to the euro.

I don't like LLY VZ. They continue to be in long term bear markets because their businesses have constant margin erosion and no pricing power. You want to be in companies that can raise prices.

[tripods68]

I would only buy Altria and wait for Dupont to fall to a point where it has a 5.4% yield.

KMP is OK and it would be my other choice if you had to buy now but I really don't like the limited partnership structure.


Total TOT yields over 6% it could be a replacement for BP if you want to have integrated oil exposure but note it has exposure risk to the euro.

I don't like LLY VZ. They continue to be in long term bear markets because their businesses have constant margin erosion and no pricing power. You want to be in companies that can raise prices.

I like stock price entry point for both MO and DD myself. Good one!

[jIM_Ohio]

JIM & BA,

My outlook is probably 5 years or less. I have some play money in our MMA account $10K that I can use to generate returns while reinvesting dividends. The rest of it is our EF. So high paying yields to me is important. These stocks is what I have found that consistently paid their shareholders regardless of the ECONOMIC conditions quarterly. I won't be trading these stocks "in-and-out" regulary but rather approaching a "HOLD" strategy. It's purpose is to fund our yearly trip vacations, starting next summer 2011.

LOL If you are going for decent returns in an EF, try PRPFX or mimic that with ETFs.

MO is a known solid dividend payer over the last decade. Focus on companies with high cash and moderate payouts (payout ratio) and not the current yield. Chasing yield has long been a known failure technique in picking stocks.

[JBinKC]

I like stock price entry point for both MO and DD myself. Good one!

Then my answer is MO only. I would refrain from buying DD at this time unless you intend to sell into earnings which would defeat the purpose of holding a high yielder.

[tripods68]

I used to own MO and made some $$ in the past. I definetely put MO on my top list.

[ea1776]

I would go for the Mergent dividend achiever's index, which tracks large companies with solid reputations for increasing dividends over time. Vanguard offers ticker VIG to track that index:

https://institutional.vanguard.com/iippdf/pdfs/FS920.pdf

0.24% expense ratio and very good diversity.

[MaxPowers]

I have VNQ and enjoy the dividends from it. What is the current % for VNQ? I don't know how to find it out.

[Broken Arrow]

Current VNQ yield: 3.76%

[Slug]

I'm a big fan of MO. I bought 200 around March of 2009. They're up 31% as of today using reinvested dividends. I did the same thing with DUK. It's only up 10%, but I'm fine with that return. It's not as exciting as FCX, OLN, or PPG which more than doubled for me, but they are solid stable companies. DUK is yielding 5.82% at the time of this post.

I have toyed with the idea of VZ, but I just don't see strong growth prospects. If you don't live pharma, I'd stay away from LLY as it requires you to know clinical trial and patent expiry timelines to be safe. KMP and DD aren't even on my radar right now.

[txman14]

I have held MFA common and PGH common for a while and have enjoyed the income. MFA is paying about 13% now and PGH is 8%. PGH pays monthly, MFA quarterly.

[BigTimeTrader]

Take a look at the Power100 stock index online