08-07-2013, 12:45 PM
Hi Eric --
I am not familiar with the last two names on your list, but otherwise it seems solid. I am a big fan of the tobacco stocks. Utilities too, though I'd be surprised to learn that SO is growing the dividend at 5 percent annually. REITs have been beat up badly lately, so if you can stomach that risk, this might be a very good time to get into some of those names.
That said, I don't have anything on my list right now that meets the 5/5 criteria you've set out. Especially given the recent run-up in prices, a 5% initial yield is a tall order (other than REITs, MLPs, etc.).
Do you mind sharing why you've landed on the 5/5 criteria? In other words, is there a reason you need or want an initial yield that high? If your time horizon is long, you might look at stocks with a slightly lower (but still good) initial yield, but very good dividend growth rates. I'm thinking of companies like LMT, WFC, and PM.
Also, why 10 stocks? $800 each seems like a prety small initial allocation. Maybe consider putting all $8k into your three or four highest-conviction plays and then diversify with new funds in the future?
Tom
I am not familiar with the last two names on your list, but otherwise it seems solid. I am a big fan of the tobacco stocks. Utilities too, though I'd be surprised to learn that SO is growing the dividend at 5 percent annually. REITs have been beat up badly lately, so if you can stomach that risk, this might be a very good time to get into some of those names.
That said, I don't have anything on my list right now that meets the 5/5 criteria you've set out. Especially given the recent run-up in prices, a 5% initial yield is a tall order (other than REITs, MLPs, etc.).
Do you mind sharing why you've landed on the 5/5 criteria? In other words, is there a reason you need or want an initial yield that high? If your time horizon is long, you might look at stocks with a slightly lower (but still good) initial yield, but very good dividend growth rates. I'm thinking of companies like LMT, WFC, and PM.
Also, why 10 stocks? $800 each seems like a prety small initial allocation. Maybe consider putting all $8k into your three or four highest-conviction plays and then diversify with new funds in the future?
Tom