Dividend Tree 11 April 2009 Commentary  Email This Post  Print This Post

It has been close to three years since I started dividend focused investing. If I look at this from a 30year+ investing cycle for individuals, then these three years may look like nothing. However, the continued anxiety and slide in ones portfolio value will turn our hair gray. I am learning that there will be winners and losers in our investment portfolios. All we have to do is minimize the losers.

Sysco Corporation (SYY): SYY was one of the most non-glamorous stocks when I had initiated my position. My current dividend yield on cost is 5.35%. As of March 2009, my total return has been 13.1% including dividends.

Johnson & Johnson (JNJ): I had waited for close to one year to initiate a starter position in this company. It was worth a wait, and as the saying goes, every company will come down at some point in time. Its price has again come down and I am tempted to add some more, even though it has reached by allocation level. My current dividend yield-on-cost is 3.4%. As of March 2009, my total return has been 6% including dividends.

Consolidated Edison (ED): My objective was to just get a utility stock in my portfolio, and hence this was a no brainer purchase. I bought it during the market boom when slow growers like utility stocks were out of favor. I had read a lot about utility stock being less volatile and slow grower, well this was a real example for me. My current dividend yield-on-cost is 6.9%. As of March 2009, my total return has been 12.9% including dividends.

Duke Energy (DUK): This was the second utility stock purchased during the same period. My current dividend yield-on-cost is 7.14%. As of March 2009, my total return has been 10.31% including dividends.

Health Care Property Investors Inc. (HCP): I had initiated starter position in August 2006. Since then I have added two times to bring to my allocation level. My current dividend yield on cost is 7.19%. As of March 2009, my total return has been 9.4% including dividends.

Reality Income Corporation (O): This was my second REIT holding. My current dividend yield on cost is 6.83%. As of March 2009, my total return has been 8.3% including dividends.

National Retail Properties (NNN): My third REIT holding was in NNN. My current dividend yield on cost is 7.74%. As of March 2009, my total return has been 9.9% including dividends.

Beneath every rose lies a thorn. My portfolio resembles this proverb. Above holdings were the roses, while the thorns have been BAC, GE, WFC, WL, and C. While I sold C and WL, I continue to hold BAC, GE, and WFC. These stocks have not only suspended their dividends, but their stock prices also have gone for a toss.

Even if the markets turn back up, my hair will continue to remain gray!