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 preservation of capital for future generations. Even though we plan to eventually live off of the dividends, unlike with traditional 4% withdrawal rate, receiving dividends doesn't necessarily reduce our portfolio balance. So as long as we choose proven dividend stocks with long track record of consistent or rising dividends, there would be no reason to believe the dividends will not continue to be paid.
- 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.