Alan Brochstein

Dividend Stocks for Retirement Portfolios

A lot of the names stay the same. What changes are earnings estimates potentially. I haven't thought about how one would run it as a portfolio, but here are some quick ideas.

First, the selection criteria should probably be loosened a little - it is highly restrictive. Second, consideration should be given to whether or not the portfolio is taxable. If so, one might want to be slow to sell stocks that are "close" to making the cut should they no longer meet the criteria. If not taxable, it would make sense to rebalance periodically as you mentioned. Realistically, though, one would want to be a bit more proactive and address situations before a rebalancing. A company, for instance, might significantly alter their capital structure by doing a debt-financed acquisition. Why wait until the rebalancing to boot it?

Dividend Stocks for Retirement Portfolios

Yes, those are different animals altogether. This screen is designed for common stock. REITs by definition must pay out almost all of their income, which can be a problem when capital is difficult to raise. MLPs have a lot of debt. Preferred are really bonds that are subordinated. Not that these other types of securities don't have a role to play, but they are not really going to fulfill these criteria.

32 Big Dividend Payers: Buy Now, Profit Later

Thanks for the comment, Ed. In fact, 19 of them have increased their dividends every year for at least the last 10:

CVX, ROH, RPM, MMM, MGCR, EMR, CTR, HD, VFC, MCD, KMB, DO, MKC, LLY, JNJ, ABT, ERIE, ALL and PAYX.