In June 2011 I invested my money equally in a selection of 10 high-yield dividend stocks. With a year of success behind me, in July 2012, I added even more money to the portfolio, and then more again in 2013. Those names offer triple the yield of the average S&P 500 stock. You can read all the details here. Now let’s check out the results so far.
| Company | Cost Basis | Shares | Yield | Total Value | Return |
|---|---|---|---|---|---|
| Exelon | $41.36 | 28.818 | 3.9% | $912.09 | (23.5%) |
| National Grid plc (ADR) (NYSE:NGG) | $48.90 | 20.3693 | 5.5% | $1,194.46 | 19.9% |
| Philip Morris International | $78.05 | 25.5429 | 3.8% | $2,270.25 | 13.9% |
| Ryman Hospitality | $40.96 | 39.3 | 5.3% | $1,482.00 | (7.9%) |
| Plum Creek Timber | $38.42 | 26 | 3.6% | $1,276.86 | 27.8% |
| Brookfield Infrastructure Partners | $26.12 | 38.2825 | 4.6% | $1,417.22 | 41.7% |
| Vodafone Group Plc (ADR) (NASDAQ:VOD) | $27.26 | 74 | 5.5% | $2,207.42 | 9.4% |
| Seaspan | $15.24 | 95 | 6.2% | $2,009.25 | 38.8% |
| Retail Opportunity Investments | $12.20 | 81.95 | 4.2% | $1,157.13 | 15.7% |
| Annaly Capital Management, Inc. (NYSE:NLY) Preferred D | $25.50 | 38.9 | 7.8% | $939.44 | (5.3%) |
| Gramercy Property Trust | $4.48 | 223 | 0% | $1,065.94 | 6.7% |
| Sprott Resource | $3.51 | 285 | 11.4% | $1,023.15 | 2.3% |
| Cash | $586.12 | ||||
| Dividends Receivable | $130.35 | ||||
| Original Investment | $14,983.36 | ||||
| Total Portfolio | $17,671.68 | 17.9% | |||
| Investment in SPY (including dividends) | 26.1% | ||||
| Relative Performance (percentage points) | (8.2) |
Source: Capital IQ, a division of Standard & Poor’s.
The total portfolio is now up 17.9%. We now lag the index by 8.2 points. The blended yield fell to 5.1%.
If dividend stocks remain at these levels for a while, I’ll be tempted to deploy some of the nearly $600 in accumulated dividends, and there’s still over $100 in accrued payouts. All that will be reinvested in what I think is the best idea in the portfolio. In addition, next month is a big month for payouts, with five companies going ex-dividend. It’s always fun to watch those dividends roll in.
Mortgage REITs have been an investor favorite for the last few years, but this quarter could prove volatile for many, including Annaly Capital Management, Inc. (NYSE:NLY), as interest rates rise. Indeed, Annaly Capital Management, Inc. (NYSE:NLY) has seen a declining interest rate spread for some time. Here’s what Fools Matt Koppenheffer and David Hanson have to say about the sector and what you should watch out for: Check out the video here.
Vodafone Group Plc (ADR) (NASDAQ:VOD) expressed its interest again in selling off its 45% stake in Verizon Wireless to joint-venture partner Verizon Communications Inc. (NYSE:VZ). This is not so much new news as it is a reiteration that Vodafone Group Plc (ADR) (NASDAQ:VOD) is interested in dealing. I suspect it’s also a public means of putting the ball back in Verizon’s court and ensuring that shareholders of both companies know that it’s not Vodafone Group Plc (ADR) (NASDAQ:VOD)’s obstinance but rather Verizon’s hardball tactics that are preventing a deal from getting done. Verizon Communications Inc. (NYSE:VZ) Wireless is the key unit of Verizon’s operations, and every quarter that goes by, Wireless becomes more valuable and more critical to Verizon’s success. How long until Verizon pays up?
