Utilities sector

[EricL]

(02-21-2020, 08:35 AM)fenders53 Wrote:

(02-20-2020, 11:56 PM)EricL Wrote:

(02-20-2020, 05:01 PM)fenders53 Wrote: It's just such a weird situation.  I don't ever recall a time most Utes appear uninvestable on valuation.  It's a lot like bidding up a 3% yielding bond 50% or more in some cases.  REITs and financials like insurance seem to be one of the few places to get around so4% without excessive valuation or an industry with severe headwinds.

I actually put together a sample 4% yielding portfolio for my dad the other day, so I know it can still be done. There's some 4%+ yielders in quite a few sectors, and blending the higher yields with 3% in others I built a twenty-five stock portfolio with an overall yield of 4.1%.

Yes of course you can, but it's just getting a lot tougher.  MUCH easier if you are willing to throw a little into sectors with a more sketchy future to average it out to 4%.  Most of us here are willing to do that.  You have to be willing to accept a little more risk if you want double the return of a 10 year treasury.  That's how that risk reward thing usually works.   

I'd be interested to see your model portfolio.

Oh yeah, they definitely aren't all darlings of the market right now, that's for sure!

But I do think think they all have safe dividends anyways.

Here are the 25: CBRL, GPC, MO, KMB, PEP, CVX, XOM, TROW, WFC, ABBV, PFE, JNJ, MMM, UPS, AVGO, CSCO, IBM, DLR, O, SPG, T, VZ, D, SO, DUK

Pretty well equally weighting, with a slight lean towards the higher yielders. Overall portfolio yield of 4.11% as of this morning.