12-14-2021, 06:34 PM
(12-14-2021, 04:29 PM)crimsonghost747 Wrote:(12-14-2021, 02:46 PM)rnsmth Wrote:(12-14-2021, 01:30 PM)crimsonghost747 Wrote: I do not hold CSCO so I can't really comment on that part of the trade.
Nor do I know SNA. But I do like WEC/LMT/RY.
You did mention that you don't have RY, do you have any Canadian banks? If not then I would indeed recommend grabbing one, it doesn't get much better when it comes to dividend safety in the financial sector. And with interest rates finally starting to go up banks should profit nicely from that.
JNJ/PEP also both at the 2.5% mark, if that is high enough for you then I can't see how it could go wrong long-term with either of these.
Looks like you could pretty easily indeed get both more dividends right now and higher dividend growth without taking on much, if any, additional risk.
There is always the option of not selling all of your CSCO, you could leave half and move the other half to a mix of better div payers / higher div growers according to your preference.
I own two Canadian banks, CM and TD. I also own JNJ and PEP and do not need any more of them. Their dividend growth is nothing to party about, but they are solid, core companies in our account.
Thanks
Good choices there, I also chose CM and TD for my portfolio. CM has been there forever, TD is a newer addition.
Hmm.. trying to think of some other options here. From what I understand you are looking for something with their yield still in the 2%+ range?
BIP has a good mix of yield and growth. It's a bit complicated though and I'm not sure if you need to consider tax stuff as I believe they are domiciled in Bermuda or another one of those tiny islands. But it is a great company.
I think you are in a good position, since with what you have now you could probably even add a growthier stock into the mix and still come out with more yield than what CSCO is giving you. Again, I don't know CSCO well enough to comment on the thought of selling it, but if you can grab a higher current yield and higher expected dividend growth then that does sound like a win-win situation.
My sweet spot, as I call it, are mid yield (2.5% to 4%) with average to fast dividend growth - say 5% to 12%+ annually)
I fund this, as there is no new money going into the accont, though holdings in higher yield companies, like VZ, ENB, TU, GILD, PBA, KMI and 4 small positions in CEFs, for example. The other way I do is by trimming or selling positions to raise money for sweet spot buys. Recently I sold MDU (3% yield, low growth) and used the proceeds to buy EOG.
I am not dripping any companies. I accumulate all the dividends and decide where to deploy them. 2021 has pretty much the year of SCHD. It is ending the year with about a 2.9% yield and a 10.8% dividend growth for 2021 over 2020 and is not our 3rd largest position at 5.6% of our combined portfolios.
As I continue to do this, the higher yield portion of our portfolios become a smaller proportion of them. Dividend growth increases and everyone is happy.