12 Dividend Stocks For 2012

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Includes: AFL, AVP, CLX, DRI, EXC, FLO, HAS, LMT, MOLX, NPK, OMI, STRA
by: MyPlanIQ

We continue to examine ideas for the long-term and retirement investor -- especially with anything that has a dividend focus. Matt Koppenheffer of the Motley Fool outlines 12 dividend stocks on his 2012 watchlist.

  • Flowers Foods (NYSE:FLO) -- Owner of Nature's Own, Whitewheat, Country Hearth, Sunbeam, Roman Meal, Aunt Hattie's bakery brands
  • Aflac (NYSE:AFL) -- Insurance from the Duck
  • Clorox (NYSE:CLX) -- Home consumer staple
  • Owens & Minor (NYSE:OMI) -- A distribution and logistics provider for a wide swath of medical gear for hospitals and other health-care providers
  • Avon Products (NYSE:AVP) -- The venerable cosmetics company
  • Exelon (NYSE:EXC) -- A nuclear generation giant
  • Hasbro (NASDAQ:HAS) -- An owner of great brands in the toy industry
  • Molex (NASDAQ:MOLX) -- Electronic connectors
  • National Presto (NYSE:NPK) -- produces housewares/small appliances, defense products, and absorbent products
  • Lockheed Martin (NYSE:LMT) -- defense contractor
  • Darden Restaurants (NYSE:DRI) -- operates restaurants under Red Lobster, Olive Garden, LongHorn Steakhouse, The Capital Grille, Bahama Breeze, and Seasons 52 brand names
  • Strayer Education (NASDAQ:STRA) -- for profit education

This is a diversified selection of stocks that are outside the mainstream of Dow giants. Are they worth considering against some of the dividend aristocrats? We will be comparing them with our dividend ETF benchmark and see how they perform.

Asset Fund in this portfolio
REAL ESTATE (NYSEARCA:ICF) iShares Cohen & Steers Realty Majors
CASH CASH
FIXED INCOME (NYSEARCA:TIP) iShares Barclays TIPS Bond
Emerging Market (NYSEARCA:VWO) Vanguard Emerging Markets Stock ETF
US EQUITY (NYSEARCA:DVY) iShares Dow Jones Select Dividend Index
US EQUITY (NYSEARCA:VIG) Vanguard Dividend Appreciation ETF
INTERNATIONAL EQUITY (NYSEARCA:IDV) iShares Dow Jones Intl Select Div Idx
High Yield Bond (NYSEARCA:HYG) iShares iBoxx $ High Yield Corporate Bd
INTERNATIONAL BONDS (NYSEARCA:EMB) iShares JPMorgan USD Emerg Markets Bond
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Portfolio Performance Comparison

Portfolio/Fund Name 1Yr AR 1Yr Sharpe 3Yr AR 3Yr Sharpe 5Yr AR 5Yr Sharpe
Retirement Income ETFs Tactical Asset Allocation Moderate 1% 9% 9% 72% 8% 55%
Retirement Income ETFs Strategic Asset Allocation Moderate 1% 6% 16% 98% 2% 7%
12 Dividend Stocks for 2012 -4% -17% 9% 44%
Click to enlarge

The performance as far as it goes is not attractive. We have seen that analysis that derives large companies that have a long history of dividends and can clearly afford them are a better bet. This may be a selection that those who are looking for bargains may prefer but I don't think this is of interest for those who don't want to constantly be involved with their stock portfolio.

Three-Month Chart One-Year Chart Three-Year Chart Five-Year Chart

As I review the graphical data, the problem that I see is too much volatility. There are some good gains and then some very steep drops. Since this is aggregated over 12 equities, this is less than desirable behavior. At this stage, I think that there are better alternatives than this selection.

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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.