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[Author's Note: The original version of this article included stocks that do not pay dividends. It has been corrected.]


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.

We have started with the first set keeping the top two as they gave a reasonable spread of high returns (but short history) and steady growth. As we proceed, we may determine to prune the list as we find better alternatives.

Portfolio/Fund Name1Yr AR1Yr Sharpe3Yr AR3Yr Sharpe5Yr AR5Yr Sharpe
13 High Yielding Stocks1%6%19%89%6%22%
3 Bargain Dividends Investors Should Buy Today27%150%24%135%

We now look at 4 and 5 dividend stock selections.

PortfolioTickers
4 Special Dividend Plays(NYSE:CVI)(NYSE:NLY)(NYSE:SSW)(NASDAQ:VOD)
4 Stocks With Pricing Power(NYSE:CAT)(NYSE:DIS)(OTCPK:LVMUY)(NYSE:SNY)
Fools 5 Dividend Payers to Save your Portfolio(NYSE:JNJ)(NYSE:KMB)(NASDAQ:MAT)(NYSE:MCD)(NYSE:SYY)
Fools 5 Dividend Payers That Are No Gamble(NYSE:PG)(SYY)(NYSE:UPS)(NYSE:WM)(NYSE:WMT)
5 Dividend Stocks Rewarding Shareholders(NYSE:AET)(KMB)(NYSE:PPG)(NYSE:WFC)(NYSE:XOM)

A full list of tickers and companies are at the end of the article.

KMB and SYY overlap in these selections and when we include the stocks previously covered, our list of stocks called more than once becomes:

INTC2
KMB2
MCD2
NLY3
PG3
SO2
SYY2
WM3

We are starting to see a list of the usual suspects being used repeatedly.

Portfolio Performance Comparison

Portfolio/Fund NameYTD
Return
1Yr AR1Yr Sharpe3Yr AR3Yr Sharpe5Yr AR5Yr Sharpe
Fools 5 Dividend Payers to Save your Portfolio2%26%172%21%137%11%55%
Fools 5 Dividend Payers That Are No Gamble2%5%29%12%76%3%14%
5 Dividend Stocks Rewarding Shareholders5%8%36%17%68%5%13%
4 Stocks With Pricing Power5%3%8%
4 Special Dividend Plays14%16%59%26%98%

We see a number of interesting returns from this set. The two that stand out are:

Portfolio/Fund NameYTD
Return
1Yr AR1Yr Sharpe3Yr AR3Yr Sharpe5Yr AR5Yr Sharpe
Fools 5 Dividend Payers to Save your Portfolio2%26%172%21%137%11%55%
4 Special Dividend Plays14%16%59%26%98%

The returns and Sharpe ratios are strong. The Fools 5 Dividend Payers is clearly at the top of the list and worth following

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

None of the performances are terrible but we can see how the top performers are ahead of the field.

The best of the bunch so far are:

Portfolio/Fund Name1Yr AR1Yr Sharpe3Yr AR3Yr Sharpe5Yr AR5Yr Sharpe
Fools 5 Dividend Payers to Save your Portfolio26%172%21%137%11%55%
13 High Yielding Stocks1%6%19%89%6%22%
3 Bargain Dividends Investors Should Buy Today27%150%24%135%
4 Special Dividend Plays16%59%26%98%

We will also continue to build a list of the most frequently referenced equities and construct a portfolio of the most popular.

More...

AETAetna
CATCaterpillar
CVICVR Energy
DISDisney
INTCIntel
JNJJohnson & Johnson
KMBKimberly-Clark
LVMUYLVMH MOET HENN
MATMattel
MCDMacDonalds
NLYAnnaly Capital
PGProcter and Gamble
PPGPPG Industries
SNYSanofi American
SOSouthern
SSWSeaspan
SYYSysco
UPSUnited Parcel Service
VODVodaphone
WFCWells Fargo
WMWaste Management
WMTWal-Mart
XOMExxon Mobil
Source: Portfolio Playoffs -- Finding The Best Dividend Portfolio (Part ll)

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.