Dividend Stocks Portfolio

We are in the process of rebalancing our Well Fargo portfolio to meet our current stock criteria (see below).  Some of our current holdings, therefore, may not reflect our current goals but we are in the process of selling a few of the companies we own as they reach our set limit price.
 
Also, the stocks we currently own in our Edward Jones portfolio were inherited by my wife years ago.  Because of the sentimental value of these holdings, our plan it to hold these for years to come.  I am just glad that we are at least getting some dividends from these holdings. :)
 
But most importantly, you should know that this dividend stock portfolio will be one of several income streams that we are planning to tap into during retirement. We are hoping to fund approximately 25% of our retirement through the dividends from this portfolio. Like other dividend stock investors, we feel the greatest benefit from this income stream is the preservation of capital for future generations.  Even though we plan to eventually live off of the dividends, unlike with the traditional 4% withdrawal rate, receiving dividends doesn't necessarily reduce our portfolio balance. So as long as we choose proven dividend stocks with a long track record of consistent or rising dividends, there would be no reason to believe the dividends will not continue to be paid.
 
 


STOCK CRITERIA
  • Dividend yield: over 2.5%
  • 5yrs of stable or preferably rising dividends
  • Payout ratio: under 75%
  • P/E Ratio under 20
  • Return on Equity: over 10%
  • EPS growth next 5 years: over 5% and preferably trending upward
NOTE: All stocks in this portfolio are kept in a taxable account. Please note that quotes may be delayed up to 20 minutes. Information is provided for informational purposes only, not for trading purposes or advice. This information may not be copied, downloaded, stored, reproduced, or redistributed without obtaining written consent from the owner.
 

49 comments:

  1. Happy Healthy and Wealthy GirlMay 4, 2014 at 6:52 PM

    I noticed that you have 663 shares of FTR and you bought it at their lowest. Do you ever sell your stocks whenever they exceed certain percentage of gain? When I was reading Rule#1 book the author suggests to sell when stock exceed 25% and then wait until the price go down again and repeat the process or buy another stock.

    ReplyDelete
    Replies
    1. A Frugal Family's JourneyMay 8, 2014 at 9:25 PM

      HH&WG,
      Coincidentally, I recently set a few limit orders to sell some of my FTR shares. It's been on a nice roll lately so this would be a good time to unload a few. :)

      My current portfolio does include a few holdings from my early investing days. But eventually, I want to only have stocks that I buy and hold for the long haul.

      Thanks for stopping by and thanks for the comment

      Delete
  2. Financejourney.comMay 8, 2014 at 9:47 AM

    Great stock portfolio, I have some of your holding (ENB, T, KMI, etc). Let the money work for us :D.

    ReplyDelete
    Replies
    1. A Frugal Family's JourneyMay 8, 2014 at 9:28 PM

      Thanks. I still consider our portfolio as a work in progress. But I agree with you, there is nothing better than seeing your money work hard for you.

      Thanks for comment. Best wishes on your journey!

      Delete
  3. ANHAMay 10, 2014 at 4:36 PM

    Hi!
    Nice portfolio and thank you for visiting my site, best wishes to you and your family just keep on investing!
    cheers!

    ReplyDelete
    Replies
    1. A Frugal Family's JourneyMay 12, 2014 at 8:57 PM

      Thanks for the compliment...I'm better than I was a year ago, but still not where I would like to be. For the time being, I will vow to continue to build and strengthen our portfolio. :)

      Thanks for stopping by.

      Delete
  4. skipMay 25, 2014 at 10:36 AM

    I'd recommend adding more consumer staples to your portfolio - KO, PEP, KMB, PG et al.

    ReplyDelete
    Replies
    1. A Frugal Family's JourneyMay 25, 2014 at 12:20 PM

      Skip - I agree. I am slowly trying to transform my current (higher risk) portfolio to a more stable, well diversified one. I have my eye on all 4 you've mentioned and all are solid long term holds. I hope to eventually include them in our portfolio one day.

      Thanks for stopping by...best wishes in your personal journey!

      Delete
  5. J @ the expat investorJuly 8, 2014 at 9:44 PM

    Hey nice dividends portfolio you have. I am working on building one myself and hope to have a nice portfolio like yours. Keep up the good work.

    ReplyDelete
    Replies
    1. A Frugal Family's JourneyJuly 9, 2014 at 7:30 AM

      Thank you J - It is still a work in progress as I transition from riskier stocks to dividend growth stocks. I'm happy with the progress thus far but I still have a long way to go.

      BTW, I see you have a rental already. You're definitely ahead of me in that category. I would like to have a rental or two to further supplement and diversify our retirement income.

      Thanks for kind words...wishing you continued success! AFFJ

      Delete
  6. DivHutJuly 17, 2014 at 9:32 PM

    You seem to be very heavy in the real estate sector. Are you not concern over rising interest rates going forward? As skip recommended I would add much more consumer staple (defense) stocks to your portfolio. Thanks for sharing!

    ReplyDelete
    Replies
    1. A Frugal Family's JourneyJuly 18, 2014 at 7:29 AM

      DivHut - I agree with you, I have my eye on a few consumer staples at the moment and have actually set a few limit buys. Unfortunately, the market keeps climbing and my limits buys go stale.

      As for real estate holdings, I've had these for awhile, back when real estate was performing poorly. They have done pretty well for me, if you take the dividends into consideration. Nevertheless, I do plan to begin unloading a few before the Feds tapering comes to a close in October.

      Thanks for stopping by and for your comment. AFFL

      Delete
  7. DavidAugust 19, 2014 at 10:53 PM

    Hi AFFJ,

    Very nice overall strategy you had. Personally I hope to replicate yours into mine, except maybe can follow on stock selection only. I had 2 stocks similar to you - AT&T and GE. There are a few in my watch list - AFL, ARCP, DE, TGT etc.... P2P lending is not widely available in my country yet. Hope this industrial will grow more. Wish you the best.

    David

    ReplyDelete
    Replies
    1. A Frugal Family's JourneyAugust 20, 2014 at 8:40 PM

      Thanks for the kind words David. And glad to see we are fellow shareholders in a few companies already. Continue to pick up shares in quality companies and you will do fine. Hope to see the both of us with more common shares in the future. Best Wishes!! AFFJ

      Delete
  8. AnonymousSeptember 20, 2014 at 2:32 PM

    I see RIG is on your list. I am looking to buy some sooner or later but am hesitant because of all the issues right now. Just need to find an entrance point. If you had to buy more where do you see a good entry point or are you confident in the price support as it stands?


    Keep cranking,

    Robert the DividendDreamer

    ReplyDelete
    Replies
    1. A Frugal Family's JourneySeptember 23, 2014 at 9:25 PM

      Oil stocks have been on a downward spiral lately. Analyst are predicting 2015 to be a slow year as well. With that said, don't buy unless you are willing to hold for at least 2 years. Personally, I am willing to wait and collect the dividends while I watch the stock price recover.

      We think RIG is a good value now at $33.50...one didn't even see these prices in 2008-2009! Although oil (and particular offshore drillers) do come with risk, we think there is definitely value in this entire sector as a whole. We've added shares of RIG, ESV, and SDRL to our portfolio recently with the bulk of our money in ESV.

      Thanks for stopping by and for your comments. Best wishes! AFFJ

      Delete
  9. TraderOctober 15, 2014 at 12:56 PM

    Your portfolio looks great! It has to be a great sensation to be a shareholder of such good companies.

    ReplyDelete
    Replies
    1. A Frugal Family's JourneyOctober 15, 2014 at 8:58 PM

      Trader - Although we are happier with our current holding, compared to our portfolio this time last year, we still feel like we are quite a ways away from our ideal portfolio. Hoping for continued success but know there may be a few more growing pains along the way. :)

      AFFJ

      Delete
  10. Louis-Paul DavidDecember 3, 2014 at 9:10 AM

    Nice portfolio. I'm mostly an index investor as I have very little expertise picking stocks.

    Just currious, do you compare yourself with a benchmark like a Vanguard dividend fund to see how you are doing ?

    ReplyDelete
    Replies
    1. A Frugal Family's JourneyDecember 3, 2014 at 9:47 PM

      We don't currently, but that is an excellent idea. I may have to do a post at the end of the year to compare our returns vs. various funds and the overall market!

      Thanks for stopping by and for your comment. Cheers! AFFJ

      Delete
  11. debt2retirementJanuary 29, 2015 at 5:34 PM

    AFFJ,

    Awesome portfolio! You have a wide variety of strong stocks that all pay great divs. Just wondering, do you plan on buying any more energy stocks in the near future? They're down so I'm wondering if others think its a good investment right now.

    D2R

    ReplyDelete
    Replies
    1. A Frugal Family's JourneyJanuary 31, 2015 at 10:58 AM

      Thanks Debt2Retirement...its still a work in progress but we are certain in better shape today than we were just a year or two ago. :) As for Oil and energy stocks, we will certainly continue to buy but will likely be more selective and choose the larger companies as they have a greater chance of survival in case things go further south for oil. Definitely some great value in oil and energy but you must be willing to wait it out. :)

      Thanks for stopping by and for your question. AFFJ

      Delete
  12. Zero to ZerosMay 13, 2015 at 11:17 PM

    Wow, that's a pretty drool-worthy portfolio you've got there man! A fantastic amount of sector diversification and an awesome number of stocks. I want to own stock in at least 30 different companies someday, but 40+ is even better!

    Thanks again for stopping by my blog earlier. Glad to have discovered your own blog that way; I'll definitely be following your progress to FI!

    Cheers :D

    ReplyDelete
    Replies
    1. A Frugal Family's JourneyMay 17, 2015 at 9:12 PM

      ZTZ - I know your are still somewhat new to blogging and investing but you should be proud of what you have. Your blog is very clean and easy to read. Your layouts and graphics are great! And for a 24yo, you are doing awesome with investing. You have a nice portfolio that appears to have a strong foundation. Continue to save and invest and by the time you reach my age, you will have amassed way more wealth than I have. I will also be following your journey to FI as well.

      Best wishes! AFFJ

      Delete
  13. UnknownMay 28, 2015 at 2:42 PM

    Looks like you are well on your way. I have similar plans to use my dividend portfolio, other investments and a pension to retire in about 10 years. Good luck on your journey.

    ReplyDelete
    Replies
    1. A Frugal Family's JourneyMay 29, 2015 at 7:54 PM

      Thanks for the words of encouragement. Glad to hear there are others on a similar path as we are. Wish you the best of luck retiring in 10 years...truly hope you reach that goal!

      Best wishes and continued success on your personal finance journey! AFFJ

      Delete
  14. Dividend ChimpSeptember 25, 2015 at 9:04 PM

    Great blog! You really have collected a vast amount of information, I'm still reading various sections, but wanted to drop a comment on the overall blog being fantastic. I'm going to have to come back and go through your dividend stocks, it's looks like you have some aggressive high yield holdings. Do you have a protocol for stocks that cut or reduced dividends like RIG?

    ReplyDelete
    Replies
    1. A Frugal Family's JourneySeptember 30, 2015 at 9:17 PM

      Thanks for the positive feedback Dividend Chimp. Glad you like it.

      I'll admit that it can be a bit overwhelming at times to maintain this blog on the side with a full-time job and two toddlers at home. But I guess that is why financial freedom is so attractive. I know I could do so much more with this blog if I had more time to spare. :)

      As for stocks that reduce dividends or cut dividends, we didn't have a protocol but looking back we probably should have cut our losses. We are simply going to ride it out now as we think oil is somewhere near the bottom by now. Moving forward, we certainly plan to think twice about keeping a stock that either cut or reduce their dividends.

      Thanks for stopping by. AFFJ

      Delete
  15. Race2RetirementSeptember 27, 2015 at 1:17 PM

    Nice list of companies in your portfolio, AFFJ! I also own many of the same companies. Your portfolio is well diversified. Keep racing!

    ReplyDelete
    Replies
    1. A Frugal Family's JourneySeptember 30, 2015 at 9:20 PM

      Thanks Race2Retirement. The portfolio is still a work in progress but I', sure that can be said about many of us until we reach FI. :) We are currently approx. 2-3 years in, and must say we are happy with the progress we've made with our dividend stocks portfolio.

      Cheers to eventually getting out of the race! :)

      AFFJ

      Delete
  16. Buy, Hold LongJanuary 5, 2017 at 5:19 PM

    Fantastic, looks like quite the diverse portfolio, I am still learning myself so I am always looking for good deals. Well done on your journey.

    ReplyDelete
    Replies
    1. A Frugal Family's JourneyJanuary 5, 2017 at 8:24 PM

      Thank you. Appreciate the feedback. Our portfolio is a few years in the making. My advice is to keep buying what you feel are good deals and hold the while collecting the dividends. If you feel that a particular stock has climbed to a point where it is way overpriced, don't be afraid to sell some or all to lock in your gains. Even in hot markets, there are always a deal to be had in some sector or company. ;) AFFJ

      Delete
  17. AnonymousFebruary 19, 2017 at 8:32 PM

    I started a Blog at

    https://othalafehu.wordpress.com/


    check out my portfolio. Any feedback is appreciated

    ReplyDelete
  18. StocklesMay 13, 2017 at 9:42 AM

    I like your portfolio. We own many of the same stocks, and I also noticed that you have a lot of Vereit stocks. So do I. Great company that will move towards $11 in a few years (1-5)

    ReplyDelete
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  21. contrarian expatriateSeptember 4, 2017 at 10:04 AM

    Why not just buy the dividend ETFs DIV and SDIV and call it a day? They both pay over 6% currently and the experts choose the actual stocks far better than I could. SDIV is internationally focused so it is beating DIV as the dollar goes down.

    ReplyDelete
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    ReplyDelete

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