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New Portfolio: Dividends to beat the bank

In talking to my father the other day, he mentioned he had a large CD that was about to mature, and wanted to build a portfolio of stocks to beat the interest rate he was getting. There are two nice things about this portfolio.

  1. We get to start from scratch with a clean slate and pick whatever stocks we want to.
  2. We have a clear goal to work towards. (Beat 4% interest)


We have a little bit of time before the CD matures, so I started doing research and came up with a list of stocks with high yields, and a few not-so-high, but with a history of raising their dividend every year.

I tried to pull a few names from every industry to that we can have some diversification in the portfolio. I also borrowed from some of the quality research at Dividend Tree.

So here is what we came up with:

Altria (NYSE:MO) yield = 7.5%
AT&T (NYSE:T) yield = 6.1%
Verizon (NYSE:VZ) yield = 6.1%
Sysco (NYSE:SYY) yield = 3.7%
Banco Santander (STD) yield = 5%
Emerson Electric (NYSE:EMR) yield = 3.7%
Honeywell (NYSE:HON) yield = 3.1%
3M (NYSE:MMM) yield = 2.76%
Pfizer (NYSE:PFE) yield = 3.9%
Merck (NYSE:MRK) yield = 4.6%
Eli Lilly (NYSE:LLY) yield = 6%
Bristol Myers (NYSE:BMY) yield = 5.5%
Permian Basin Trust (NYSE:PBT) yield = 7.3%
Kinder Morgan partners (NYSE:KMP) yield = 7.8%
Heinz (HNZ) yield = 4.2%
Kraft (KFT) yield = 4.4%
Duke energy (NYSE:DUK) yield = 6.2%
Dominion (NYSE:D) yield = 5.3%
Con Ed (NYSE:ED) yield = 5.9%
PG&E (NYSE:PCG) yield = 4.2%

So that’s what we have to work with.  Have some suggestions for us to consider? Let me know. Want to help us to decide, tell us in the comments.  We’ll be building the portfolio within the next few weeks.



Disclosure: long MO, T, VZ, EMR, PBT, ED