[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 Name | 1Yr AR | 1Yr Sharpe | 3Yr AR | 3Yr Sharpe | 5Yr AR | 5Yr Sharpe |
|---|---|---|---|---|---|---|
| 13 High Yielding Stocks | 1% | 6% | 19% | 89% | 6% | 22% |
| 3 Bargain Dividends Investors Should Buy Today | 27% | 150% | 24% | 135% |
We now look at 4 and 5 dividend stock selections.
| Portfolio | Tickers | ||||
| 4 Special Dividend Plays | (CVI) | (NLY) | (SSW) | (VOD) | |
| 4 Stocks With Pricing Power | (CAT) | (DIS) | (LVMUY) | (SNY) | |
| Fools 5 Dividend Payers to Save your Portfolio | (JNJ) | (KMB) | (MAT) | (MCD) | (SYY) |
| Fools 5 Dividend Payers That Are No Gamble | (PG) | (SYY) | (UPS) | (WM) | (WMT) |
| 5 Dividend Stocks Rewarding Shareholders | (AET) | (KMB) | (PPG) | (WFC) | (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:
| INTC | 2 |
| KMB | 2 |
| MCD | 2 |
| NLY | 3 |
| PG | 3 |
| SO | 2 |
| SYY | 2 |
| WM | 3 |
We are starting to see a list of the usual suspects being used repeatedly.
Portfolio Performance Comparison
| Portfolio/Fund Name | YTD Return | 1Yr AR | 1Yr Sharpe | 3Yr AR | 3Yr Sharpe | 5Yr AR | 5Yr Sharpe |
|---|---|---|---|---|---|---|---|
| Fools 5 Dividend Payers to Save your Portfolio | 2% | 26% | 172% | 21% | 137% | 11% | 55% |
| Fools 5 Dividend Payers That Are No Gamble | 2% | 5% | 29% | 12% | 76% | 3% | 14% |
| 5 Dividend Stocks Rewarding Shareholders | 5% | 8% | 36% | 17% | 68% | 5% | 13% |
| 4 Stocks With Pricing Power | 5% | 3% | 8% | ||||
| 4 Special Dividend Plays | 14% | 16% | 59% | 26% | 98% |
We see a number of interesting returns from this set. The two that stand out are:
| Portfolio/Fund Name | YTD Return | 1Yr AR | 1Yr Sharpe | 3Yr AR | 3Yr Sharpe | 5Yr AR | 5Yr Sharpe |
|---|---|---|---|---|---|---|---|
| Fools 5 Dividend Payers to Save your Portfolio | 2% | 26% | 172% | 21% | 137% | 11% | 55% |
| 4 Special Dividend Plays | 14% | 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 Name | 1Yr AR | 1Yr Sharpe | 3Yr AR | 3Yr Sharpe | 5Yr AR | 5Yr Sharpe |
| Fools 5 Dividend Payers to Save your Portfolio | 26% | 172% | 21% | 137% | 11% | 55% |
| 13 High Yielding Stocks | 1% | 6% | 19% | 89% | 6% | 22% |
| 3 Bargain Dividends Investors Should Buy Today | 27% | 150% | 24% | 135% | ||
| 4 Special Dividend Plays | 16% | 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.
| AET | Aetna |
| CAT | Caterpillar |
| CVI | CVR Energy |
| DIS | Disney |
| INTC | Intel |
| JNJ | Johnson & Johnson |
| KMB | Kimberly-Clark |
| LVMUY | LVMH MOET HENN |
| MAT | Mattel |
| MCD | MacDonalds |
| NLY | Annaly Capital |
| PG | Procter and Gamble |
| PPG | PPG Industries |
| SNY | Sanofi American |
| SO | Southern |
| SSW | Seaspan |
| SYY | Sysco |
| UPS | United Parcel Service |
| VOD | Vodaphone |
| WFC | Wells Fargo |
| WM | Waste Management |
| WMT | Wal-Mart |
| XOM | Exxon Mobil |
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.
