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|
|Realty Income Commercial REITs|
|Omega Healthcare Investors Healthcare REITs|
|British American Tobacco|
|Philip Morris International 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?