Searching for yield

[NJres]

<p>I have been building a dividend portfolio over the past 2 years, slowly moving out of cash. The thing that makes me uncomfortable about this strategy is it seems to be highly recommended; you read a lot about dividend portfolios for this zero interest rate environment and if too many people are going in this direction it is bound to fail.</p>

<p>That said, I have some solid bluechips and a sprinkling of high yield stocks to boost the overall yield of the portfolio. Most of these positions now have some capital gains in them because the stock market has been pumped up like a big ol hot air balloon. Sadly, I don’t own AAPL. I was lucky to buy MCD for the dividend but now it has gone up so much the yield isn’t as great. Some of my stocks and their dividend yield: BMO 4.8%, BMY 4.17%, BWP 7.77% (an energy limited partnership) COP 3.48% CPB 3.44% CTL 7.26% DD 3.22% DUK 4.74% IP 3.26% (of course some VZ and T and a few others) and I juice up the portfolio yield with small positions in KFN 7.85% NCT 10.5%, NLY 13.7%
oh, also KMB 3.9% but they promised a dividend increase this year which will make it 4+. These are not recommendations, just answering the question. I also have some tbills that yield point zero eight percent… and a little bit of long bonds that yield 3.24% but will probably sell them soon.</p>

[DocT]

<p>NLY = 13.7%, VZ = 5.2%, KMP = 5.2%, UIL = 4.8%, COP = 3.5%, INTC = 3.1%, MSFT = 2.6% and UTX = 2.3%</p>

[dstark]

<p>C… How did you ever get on here?</p>

[dstark]

<p>Yeah…I might buy some of the stocks mentioned in the last few posts…if the market corrects…</p>

<p>I too am worried that dividend paying stocks are in vogue…and really…most of those dividend yields are not that high…</p>

<p>If rates ever go up…those yields might be too low…</p>

[LongPrime]

<p>I’m thinking NWN (local distributor), TPR (transporter). If I’m going to use the stuff, I might as well get some payback.</p>

[Planestate]

<p>

The dividend story could soon get another big boost: Apple Inc., which has long hoarded the cash generated by its phenomenally successful products, is under pressure to spread some of that wealth by reinstating a payout. The company hasn’t paid a dividend since 1995.</p>

<p>Apple management is thinking “very deeply” about what to do with the firm’s $100 billion in cash, Chief Executive Tim Cook told shareholders at the annual meeting last week.</p>

<p>Flush with earnings from the recovering economy, big-name companies in the Standard & Poor’s 500 index are expected to pay total dividends of $263 billion this year, up 9.1% from 2011 and surpassing the previous record of $248 billion in 2008, said Howard Silverblatt, senior index analyst at S&P in New York.

</p>

<p>[Dividends</a> once again becoming a selling point - Los Angeles Times](<a href=“http://articles.latimes.com/2012/feb/26/business/la-fi-dividend-stocks-20120226]Dividends”>Rising stock dividends regain allure as investment strategy)</p>

<p>True, dividends are getting hyped, but with dividends enjoying 15% tax treatment what’s not to love?</p>

<p>Next month I will sell ONE share of my Apple stock to buy my first iPad (smiley face).</p>

[parent57]

<p>Dividend paying stocks can be a very good long-term investment, but if you are retired or near retirement, I would be very careful. Stocks, as we have seen, can be very volatile and can lose 50% of their value in a very short period of time. Unless you have the time to weather these inevitable corrections or can replenish any losses, I would not allocate a very high percentage of your assets to stocks.</p>

<p>Also, Obama has a proposal in his latest budget to eliminate the favorable tax treatment of dividends.</p>

[DocT]

<p>If you have been reinvesting your dividends and sell, what do you do with .87 shares?</p>

[dstark]

<p>The Company that issues the dividends might take that partial share off your hands…</p>

<p>I guess you can call investors relations.</p>

<p>I would try my brokerage firm first.</p>