Dividend Portfolio Playoffs -- Finding The Best Dividend Portfolio

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Includes: ABT, AFL, DBD, DOV, EMR, FTR, GPC, INTC, JNJ, KO, MCD, MMM, MRK, NLY, PG, PM, SO, VDE, WCRX, WM
by: MyPlanIQ

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

(NYSE:SO) (NYSE:WM) (NYSE:CIM) (NASDAQ:INTC) (NYSE:KO) (NYSEMKT:BTI) (NYSE:NLY) (NYSE:COH) (NYSE:PEB) (NYSE:CXS)

12 Dividend Stocks for 2012

(NYSE:FLO) (NYSE:AFL) (NYSE:CLX) (NYSE:OMI) (NYSE:AVP) (NYSE:EXC) (NASDAQ:HAS) (NASDAQ:MOLX) (NYSE:NPK) (NYSE:LMT) (NYSE:DRI) (NASDAQ:STRA)

13 High Yielding Stocks

(NYSE:GPC) (NYSE:EMR) (NYSE:MMM) (NYSE:DBD) (NYSE:DOV) (NYSE:MCD) (NYSE:PG) (NYSE:FTR) (NYSE:CMC) (NYSEARCA:VDE) (NYSE:MRK) (NASDAQ:WCRX)

July 2011 All-Star Dividend Portfolio

(NYSE:EPB) (NYSE:ABT) (NYSE:TEF) (NYB)

3 Bargain Dividends Investors Should Buy Today

(NYSE:JNJ) (NYSE:PM) (INTC)

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(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%
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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.

More...

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
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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.