Building A Dividend Portfolio

My goal is to retire early and in order to accomplish that I will need to build a solid dividend portfolio. Creating this well-diversified dividend portfolio will take many years to complete, but that should be the fun part. I strongly believe in selecting high quality companies that have paid out dividends consistently for years. A corporations track record for rewarding investors is essential and I want to make sure I choose companies that steadily increase their payouts each year in order to keep up with inflation. In this article, I will provide a list of 18 companies that I feel would be great candidates for building a solid dividend portfolio.

 

Individual Stock Portfolio
ConocoPhillips  Integrated Oil & Gas
Exxon Mobile Integrated Oil & Gas  
American Electric Power   Electric Utilities
Aqua America   Water Utilities   
New York Community Bancorp, INC.   Financials
Wells Fargo    Financials
Verizon Communication  Telecommunications
AT&T  Telecommunications  
Realty Income   Commercial REITs   
Omega Healthcare Investors  Healthcare REITs
British American   Tobacco
Philip Morris International  Tobacco
Altria   Tobacco
The Coca-Cola Company  Beverages
General Mills Consumer Foods 
Ford Consumer Goods
Bristol-Myers Squibb Company Pharmaceutical
Medtronic PLC   Medical Devices

All of these stocks pay a solid dividend and have for many years. I am sure there are a lot more stocks that could be added to this list. I think the most important thing is make sure you are diversified among multiple sectors. Most individuals need to invest in at least 12 to 18 stocks (preferably in different sectors) to become diversified.

Make sure you research a company’s history of paying a dividend (Check out Dividend Aristocrats) and find corporations that are important to our economy. I have always believed in investing in well-run companies that have an edge in their industry. I believe Nike, Walmart and Medtronic are good examples. However, Nike is  not really a good dividend stock, but more of a growth stock. I would encourage you to check our Sure Dividend: The 8 Rules of Dividend Investing. This is a great article.

So, my question is what dividend stocks are on your list? Have you started building your dividend portfolio yet?

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