07-19-2015, 12:45 PM
Just went through this with my kids, good savers @ 26 and 29 years old but don't want to futz with a portfolio. The drill down went like this.
1. Dividend aristocrat.
2. 5 year dividend increase =/> or near 25 year average
3. Reasonable % payout.
The shakeout yielded: 3M, APD, CL, DOV, GWW, HRL, LOW and MDT.
Equal weight in all and add to them when their yield is .50% greater than their 5 year average yield ( a way to quantify the dip).
I know this portfolio doesn't cover all sectors but it is a reasonable compromise and most importantly, something they both can understand and implement.
1. Dividend aristocrat.
2. 5 year dividend increase =/> or near 25 year average
3. Reasonable % payout.
The shakeout yielded: 3M, APD, CL, DOV, GWW, HRL, LOW and MDT.
Equal weight in all and add to them when their yield is .50% greater than their 5 year average yield ( a way to quantify the dip).
I know this portfolio doesn't cover all sectors but it is a reasonable compromise and most importantly, something they both can understand and implement.