"Safe" medium yielders - the 4%ers

[ken-do-nim]

I'm starting a new thread to discuss that rarest of species: stocks/etfs that pay in the 4-5% mid-yield range, but also demonstrate price growth.

ABBV is my current darling in this space, though they do have a patent running out at some point.

[fenders53]

(08-05-2021, 06:16 AM)ken-do-nim Wrote: I'm starting a new thread to discuss that rarest of species: stocks/etfs that pay in the 4-5% mid-yield range, but also demonstrate price growth.

ABBV is my current darling in this space, though they do have a patent running out at some point.

Weird 

I always try to have a few of these in my port.

[ChadR]

Before it's runup, AVGO was paying 4%. Just checked and the 4% was a little under a year ago. Now it's trading at just under 3%.

[ChadR]

I like ABBV, CVX (if you're OK with the volatility of oil), GILD, KEY (nice regional bank that's a little under 4%), and O (back the truck up when it hits 5%).

[crimsonghost747]

Now this is a good topic. I firmly believe there are still, even at today's valutions, some relatively solid 4-5% yielders out there. 4-5% is still at the level where a good company can keep paying, and raising, the dividend steadily while still having enough free cash flow keep investing and growing their business. And they won't have to reduce the dividend at the first sign of trouble.

BCE is in the telecom space and has a safe, slowly growing yield of 5.60%. I used to own this for ages but sold due to low growth.

CM is a large Canadian bank with probably one of the fanciest dividend growth track records in the history of the stock market. Sure, sometimes they skip a raise (such as in 2008/2009) so they are not a dividend aristocrat. But from what I can tell they haven't cut the dividend a single time in the 150+ years they have been paying a dividend. Current yield is at 4%. One of my largest holdings.

AQN is the newest addition to my portfolio. A risky utility with exposure to both the transmission side of thing and generation from renewables. Yield 4.3% Tiny position here.

[fenders53]

There will be a time when 4% isn't so hard to find. For now I just have oil and tobacco.

[DazzlingDay]

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[ken-do-nim]

(08-06-2021, 08:11 AM)DazzlingDay Wrote: PRU is a nice one. Yield is 4.6% with good dividend growth and price growth.

Yes, good catch!

And I'm a bit stunned to see that the company headquarters is Newark NJ, given that Boston's 2nd tallest building is the Prudential Center.  I always assumed Prudential was a Boston company.

(For those visiting Boston, the tallest building - the John Hancock - closed its top floor visitor center after 9/11, so if you want to get skyline views of Boston, the Prudential Center's top floor is the way to go.  Also, the restaurant Top of the Hub is the floor below with amazing views while you eat.)

[bankerboy]

VZ was my last purchase a few weeks back. AbbVie will be my next just being patient to see it drop a bit more.

After that it gets murky, so many in this yield category are value traps over the last 10 years when the broader market has really grown making it tough to jump in right now for folks who are 7 years or more out like me.


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[fenders53]

(09-25-2021, 08:15 AM)bankerboy Wrote: VZ was my last purchase a few weeks back. AbbVie will be my next just being patient to see it drop a bit more.

After that it gets murky, so many in this yield category are value traps over the last 10 years when the broader market has really grown making it tough to jump in right now for folks who are 7 years or more out like me.


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This is a thread I hope we keep alive.  We'll have to wait for a dip for more candidates.  

ABBV still seems like the most obvious.  Some insurance companies and financials are close.  The 10 year chart is a good standard for yield trap status or not.  Oil and tobacco have been just, that trailing SPY by a mile.  I own them but they are yield traps until proven otherwise.  A 4%+ yield is asking for 3X the risk free return of a 10yr treasury so we'll wait for a dip.  There are exceptions but mostly we accept a stock with fleas for now. High debt, little growth etc.  

This is why I sell covered calls.  Boring stuff becomes high yield with less risk.

[bankerboy]

Agree. I’m hoping to slowly transition over the next 7 years to more of a high quality dividend paying portfolio that has a bit of growth to outpace inflation with more stability. Asking a lot I know!

If I can get 4.75% and stability then I’ll slowly take positions. That why late last year I took XLE and a couple of banks figuring they would run pretty well this year and recently grabbed some VZ.

What’s everyone’s thought on DIVO? Appears to be a decent alternative to a bunch of constant monitoring which would be attractive to me. Then again if I’m retired I may have more time and enjoy it more.


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[kblake]

There are the ones I like

ENB (debt a bit high)
WPC
MMP
OHI
LTC
OKE
PEBO