08-12-2013, 02:38 PM
I think I've settled on a final 8 man roster. Dropped OHI, DLR and LO because I already hold them in my 401k and dropped SO after doing a little more research. The cost overruns on the nuclear plant under construction makes me a little leery of expecting much for dividend growth in the future.
I replaced them with Reynolds American (RAI) and Wyndham Worldwide (WYN). Wyndham will be my higher growth, lower yield option in the portfolio.
Here is the final breakdown...
ARCP 6.5% yield, new REIT
BP 5.2% yield, yield still recovering from Gulf oil spill
COP 4.1% yield, 13.1% 5YR CAGR (4.6% MR)
MO 4.9% yield, 14.3% 5YR CAGR (7.3% MR)
RAI 5.0% yield, 7.8% 5YR CAGR (6.8% MR)
TCAP 7.3% yield, 15.6% 5YR CAGR (2.2% MR)
TGH 5.2% yield, 52% 5YR CAGR (1.9% MR)
WYN 1.9% yield, 75.6%5YR CAGR (26.1% MR)
Average yield for the portfolio is 5.0% and I think it should be able to maintain a 5% dividend growth rate going forward. I will be able to buy about $1000 worth of each position which will keep my transaction fees under 1% to build the portfolio. I'll try to post an update at the end of the year to show how things are going.
I replaced them with Reynolds American (RAI) and Wyndham Worldwide (WYN). Wyndham will be my higher growth, lower yield option in the portfolio.
Here is the final breakdown...
ARCP 6.5% yield, new REIT
BP 5.2% yield, yield still recovering from Gulf oil spill
COP 4.1% yield, 13.1% 5YR CAGR (4.6% MR)
MO 4.9% yield, 14.3% 5YR CAGR (7.3% MR)
RAI 5.0% yield, 7.8% 5YR CAGR (6.8% MR)
TCAP 7.3% yield, 15.6% 5YR CAGR (2.2% MR)
TGH 5.2% yield, 52% 5YR CAGR (1.9% MR)
WYN 1.9% yield, 75.6%5YR CAGR (26.1% MR)
Average yield for the portfolio is 5.0% and I think it should be able to maintain a 5% dividend growth rate going forward. I will be able to buy about $1000 worth of each position which will keep my transaction fees under 1% to build the portfolio. I'll try to post an update at the end of the year to show how things are going.