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div hounds

davidrmorandavidrmoran
edited September 2014 in Off-Topic
I don't want to sound like some div article on Seeking Alpha or similar, but I was reading tonight about strategic beta zzzz, and since with even the cheapest good div ETFs you are giving away a significant percentage of your div to expenses, I thought I would poke into the holdings of some of the best.

Using M* I listed the top 25 holdings for newly loved SPHP and PFM, added my fave div etf SCHD, cut redundancy, and added a personal favorite, Barnes Group, B, v old, which no one but no one holds.

Here is the list. If you have a brokerage like ML that permits free trading, you could buy a thou or several thou of each company and call it a day for life, I bet:

3M Co
Abbott Laboratories
Altria Group
Ameren
AT&T
Barnes Group
Boeing
Caterpillar
CenturyLink
Chevron
Cincinnati Financial
Coca-Cola
Colgate-Palmolive
ConAgra Foods
ConocoPhillips
Consolidated Edison
CVS
Dow Chemical
Duke Energy Corporation
E I du Pont de Nemours
Eli Lilly
Ensco PLC
Entergy
Enterprise Products Partners
Exxon Mobil
Health Care REIT
Home Depot
Intel
International Business Machines
Johnson & Johnson
Kimco Realty
Kinder Morgan
Leggett & Platt
Macerich
McDonald's
Medtronic
Microsoft
Monsanto
Occidental Petroleum
People's United Financial
PepsiCo
Pfizer
Philip Morris International
Pinnacle West Capital
Plum Creek Timber
PPL
Procter & Gamble
Qualcomm
Reynolds American
Southern Co
TECO Energy
Texas Instruments
United Parcel Service
United Technologies
Verizon
Walgreen
Wal-Mart Stores
Waste Management

Comments

  • MarkMark
    edited September 2014
    I, for one, agree with that premise but I'm biased since I've been doing it for a number of years now. Do I beat the S & P 500 every year? Oh heck no but that's not my bogey. (However I have beaten it over the last 5 and 10 year periods) As long as I get my dividends on a regular basis and that pile of cash increases every year I'm a happy camper.
  • scott
    I've gone this route to a considerable degree, with a mix of higher yield and growth with a div/dividend growth. I think it's probably the most enjoyable investing has been for me and the least stressed I've ever been about the day-to-day. Just reinvesting dividends as they come in.
  • PRESSmUPPRESSmUP
    You could cut and paste this thread onto the one titled "What Should You Have Done Differently About Money In Your 20s?"

    As have several others, I have adopted this approach for a subset of my holdings several years ago. I only wish I would have bought JNJ and re-invested the dividends over a 30 year period.
  • rjb112
    "Using M* I listed the top 25 holdings for newly loved SPHP"

    What is SPHP?
    Anyway, this dividend strategy is very interesting
  • davidrmorandavidrmoran

    h,lmgtfy:

    https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=SPHB
  • rjb112
    davidrmoran said:


    h,lmgtfy:

    https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=SPHB

    I had put the symbol you posted into Morningstar and they didn't recognize it.
    No wonder, you posted the wrong symbol.

    "Using M* I listed the top 25 holdings for newly loved SPHP"

  • JedClampett
    So why would you be shopping the top 25 of a high beta portfolio to build a list of dividend paying individual stocks? I must be missing something...
  • davidrmorandavidrmoran
    rjb - d'oh! thanks

    JC - not following your question. It is just a cheaper way of holding those ETFs, and I included SCHD, which many feel is the best of the regular div ETFs. Not shopping among them. The point was just that if you put commissionfree money equally into these (plus my fave Barnes), you would dupe these good ETFs at zero cost.
  • JedClampett
    You said: "Using M* I listed the top 25 holdings for newly loved SPHP"

    Then you clarified to this: https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=SPHB

    Looking at SPHB, that is the PowerShares S&P 500 High Beta ETF.

    I didn't understand why you would be interested in that group for a dividend focused portfolio. Maybe you meant something else.

    My reference to 'shopping' just meant looking at their holdings.

  • JedClampett
    Ok, after looking around, I assume you meant SPHD - PowerShares S&P 500 High Dividend ETF
  • davidrmorandavidrmoran
    No, no, I meant SPHB (did not make two mistakes:) ). Perhaps my hed misled. I wanted to see its top 25 overlap with PFM and SCHD. This after reading this windy thing: http://www.morningstar.com/Cover/videoCenter.aspx?id=665823. And like so many others, figuring one could do the same cheaper via commissionfree brokerage, which I have, and buying a thou or more each of the individual stocks instead of ETFs. Not doing this myself, or not yet, as it happens. Just wanted to post the company list for people. I could have included NOBL and all the other quality-oriented div ETFs too, but my OCD petered out.
  • JedClampett
    Hmmm, so I'm back to my original question: Why are you looking at high beta stocks in combination with other dividend etfs to make your list?

    I completely understand the motivation to look at the holdings of the various dividend etfs to generate a unique list of holdings, but don't see the purpose of including SPHB. Again, I must be missing something.

  • varmint
    I have been using this type of strategy for 15 years. Very happy with it. Whether you exceed S&P 500 is not relevant and that measurement (S&P 500) is a media creation, hype that says nothing about your individual situation.
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