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I'm getting bored with day trading. So, I'm going to create...

Posted on 2/22/12 at 9:17 am
Posted by LSURussian
Member since Feb 2005
126935 posts
Posted on 2/22/12 at 9:17 am
....a dividend yield portfolio.

So far I've bought LLY (5.06%), BMY (4.21%) and DUK (4.79%).

Looking at Entergy (ETR-4.92%) and Altria (MO-5.54%).

Any other suggestions out there?

I'm not interested in the speculative high dividend flyers, just some good solid companies with a history of regular dividend increases with a minimum yield of 4%.
Posted by Chad504boy
4 posts
Member since Feb 2005
166087 posts
Posted on 2/22/12 at 9:20 am to
T
Posted by Chad504boy
4 posts
Member since Feb 2005
166087 posts
Posted on 2/22/12 at 9:22 am to
PBI is intriguing a bit.
Posted by LSURussian
Member since Feb 2005
126935 posts
Posted on 2/22/12 at 9:25 am to
quote:

T

I've looked at AT&T but my concern is its payout ratio is over 250%. That tells me either the dividend will have to be cut or Ma Bell better get its profits WAY up.
What's your take?
Posted by Chad504boy
4 posts
Member since Feb 2005
166087 posts
Posted on 2/22/12 at 9:27 am to
quote:

I've looked at AT&T but my concern is its payout ratio is over 250%. That tells me either the dividend will have to be cut or Ma Bell better get its profits WAY up.
What's your take?


I've inherited T stock years and years ago and they've always paid a 4-5% plus dividend. What about Verizon... i think they have a similar dividend, not sure if their financials make you feel cozier.
Posted by LSURussian
Member since Feb 2005
126935 posts
Posted on 2/22/12 at 9:31 am to
I also considered PBI but its stock has fallen over 25% in the past 12 months. Something is going on with that company that is not readily apparent. It's got a heckava yield but I think I'll wait a bit on that one until I can figure out what's happening with it.

I had not considered Verizon. I'll take a look at it now.
Posted by TheIndulger
Member since Sep 2011
19239 posts
Posted on 2/22/12 at 9:32 am to
Check out Seadrill (SDRL)
Posted by Chad504boy
4 posts
Member since Feb 2005
166087 posts
Posted on 2/22/12 at 9:35 am to
quote:

I also considered PBI but its stock has fallen over 25% in the past 12 months.


Why i called it intriguing... maybe it can rebound a bit and give you double the rewards...
Posted by Clay1582
Shreveport
Member since Oct 2007
78 posts
Posted on 2/22/12 at 9:36 am to
Check out bwp. I own it and have been in and out of it for a couple of years. 7.8%.
Posted by GregYoureMyBoyBlue
Member since Apr 2011
2960 posts
Posted on 2/22/12 at 9:42 am to
I like the Altria pick personally.

Take a look at UG also. Just announced a record cash dividend a couple months ago. They're pretty small time in Personal products so i'd be wary.

Article on dividend LINK
This post was edited on 2/22/12 at 9:45 am
Posted by joeygalloway9
Baton Rouge
Member since Apr 2007
157 posts
Posted on 2/22/12 at 9:43 am to
FTR
Posted by LSURussian
Member since Feb 2005
126935 posts
Posted on 2/22/12 at 9:44 am to
Regarding VZ, it also has a 200%+ payout ratio.

I read a couple of weeks ago that all the mobile phone vendors' profits are getting hurt because of the iPhone. Apple's agreements with them require some type of rebate on an ongoing basis for each iPhone they sell and have a access agreement for.

It's the main reason VZ's net profit is barely 1/3 what it was two years ago and why its profits have declined 3 years in a row. Sprint has not made a profit for 5 years.

I have not seen AT&T's 2011 profits yet but it had a profit decline the first three quarters of 2011. The more iPhones they sell, the worse their profits.....
Posted by LSURussian
Member since Feb 2005
126935 posts
Posted on 2/22/12 at 9:48 am to
quote:

Check out Seadrill (SDRL)


I've never heard of them but a quick glance at their financials show a huge decline in quarterly profits year over year. They barely made any money at all.

Please tell me what you know about them and fill in my knowledge gap. Thanks.
Posted by Chad504boy
4 posts
Member since Feb 2005
166087 posts
Posted on 2/22/12 at 9:50 am to
quote:

The more iPhones they sell, the worse their profits.....


white people problems?
Posted by LSURussian
Member since Feb 2005
126935 posts
Posted on 2/22/12 at 9:51 am to
quote:

Check out bwp.

With a payout ratio over 150% and declining quarterly profits, this company might have a little too much risk for my appetite now.

But I'll put it on my watch list for later consideration.
Posted by LSURussian
Member since Feb 2005
126935 posts
Posted on 2/22/12 at 9:54 am to
quote:

FTR
Payout ratio is 500%. Plus it's a penny stock.

That would be a speculative buy using my standards. I think they will cut or eliminate their dividend this year.
Posted by LSURussian
Member since Feb 2005
126935 posts
Posted on 2/22/12 at 9:54 am to
quote:

white people problems?

Posted by aaronb023
TeamBunt CEO
Member since Feb 2005
11774 posts
Posted on 2/22/12 at 10:22 am to
COP and PM
Posted by LSURussian
Member since Feb 2005
126935 posts
Posted on 2/22/12 at 11:19 am to
quote:

COP and PM

Both of those are below my minimum yield objective. But thanks!
Posted by ynlvr
Rocket City
Member since Feb 2009
4583 posts
Posted on 2/22/12 at 11:22 am to
I rode the MLP train for the past 18 months (KMP particularly) but they are beginning to scare me. Between the heavy run and the potential for negative tax treatment, I am getting a little nervous.

TOT (Total) has room in the O&G play with a 5+% yield.
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