With continued low interest rates likely, bonds will be under pressure to deliver growth and income. Increasingly dividend-bearing stocks are of interest to help provide income as well as growth. Over the past few months we have reviewed around 60 different selections of dividend-bearing stocks.
Many of these stock selections overlap and so we now review these portfolios to see if there is a common thread and find the best of the best in terms of long-term growth, stability and short-term income.
We will review them in groups and dismiss the ones that have undesirable properties and then try and determine a set of stocks that have the best properties for strong risk adjusted returns. The goal being to provide a set of different stocks that can be deployed depending on the detailed requirement.
Portfolio Stocks in the portfolio
| 10 Outstanding Dividend Stocks to Buy in This Crazy Market | |
| 12 Dividend Stocks for 2012 | (FLO) (AFL) (CLX) (OMI) (AVP) (EXC) (HAS) (MOLX) (NPK) (LMT) (DRI) (STRA) |
| 13 High Yielding Stocks | (GPC) (EMR) (MMM) (DBD) (DOV) (MCD) (PG) (FTR) (CMC) (VDE) (MRK) (WCRX) |
| July 2011 All-Star Dividend Portfolio | |
| 3 Bargain Dividends Investors Should Buy Today |
(Note: The names of the companies above are listed in alphabetical order at the end of the article.)
In the four stock selections, four stocks were referenced twice
- WM
- SO
- INTC
- PG
- NLY
Portfolio Performance Comparison
| Portfolio/Fund Name | 1Yr AR | 1Yr Sharpe | 3Yr AR | 3Yr Sharpe | 5Yr AR | 5Yr Sharpe |
|---|---|---|---|---|---|---|
| 13 High Yielding Stocks | 1% | 6% | 19% | 89% | 6% | 22% |
| 12 Dividend Stocks for 2012 | -4% | -16% | 10% | 48% | ||
| July 2011 All-Star Dividend Portfolio | 1% | 5% | 12% | 74% | ||
| 10 Outstanding Dividend Stocks to Buy in This Crazy Market | 9% | 43% | ||||
| 3 Bargain Dividends Investors Should Buy Today | 27% | 150% | 24% | 135% |
If I am going to whittle down the selection, I would take 13 High-Yielding Stocks and 3 Bargain Dividends Investors Should Buy Today. My reasoning is that the first one has the longest history and a good number of stocks to provide stability. The reason for the second one is that it has done well for as long as it has existed.
Three-Month Chart One-Year Chart
Three-Year Chart
Five-Year Chart
This is the first of a series of dividend stock selections that will lead us to the best of the best and we can also put together some of the most commonly used stocks to see if we can find the best of the best of dividend selections.
| Ticker | Company | Ticker | Company |
| ABT | Abbot Labs | JNJ | Johnson and Johnson |
| AFL | Aflac | KO | Coke |
| AVP | Avon Products | LMT | Lockheed Martin |
| BTI | British American Tobacco | MCD | MacDonalds |
| CIM | Chimera Investment | MMM | 3M |
| CLX | Clorox | MOLX | Molex |
| CMC | Commercial Metals | MRK | Merck |
| COH | Coach | NLY | Annaly Capital |
| CXS | Crexus Investment | NPK | National Presto |
| DBD | Diebold Inorated | NYB | New York Bank |
| DOV | Dover oration | OMI | Owens & Minor |
| DRI | Darden Restaurants | PEB | Pebblebrook Hotel |
| EMR | Emerson Electric | PG | Proctor and Gamble |
| EPB | El Paso Pipeline | PM | Philip Morris |
| EXC | Exelon oration | SO | Southern |
| FLO | Flowers Foods | TEF | Telefonica |
| FTR | Frontier Communications | VDE | Vanguard Energy |
| GPC | Genuine Parts | WCRX | Warner Chilcott |
| HAS | Hasbro | WM | Waste Management |
| INTC | Intel |
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.
