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Retirees Higher Yield Withdrawal Model Portfolio. Update #1


I have eliminated the confusion from prior article.

I have tweaked the value of the portfolio so anyone can follow it.

I have finalized my plan and schedule.

Third quarter update for OHI.

A fun facts chart for NLY.

In my previous article,, I set up a portfolio of higher yielding positions.

To review: We discussed in that first article that many retirees find themselves at a point where they are ready to withdraw income for retirement. They have their savings and would perhaps like to put it in a dividend growth portfolio. But to start now that would only yield 3%-4% and they feel that they need more income. So I have set up a model portfolio made up of dividend growth stocks like Altria (NYSE:MO), AT&T(NYSE:T), Omega Healthcare Investors(NYSE:OHI) and Realty Income(NYSE:O). To that I have added fixed income preferred like those from BB&T(NYSE:BBT) and RAIT Financial Trust(NYSE:RAS). Finally there are some high yield low (or no) growth stock like PennantPark Investment (NASDAQ:PNNT), New York Community Bank(NYSE:NYCB) and Compass Diversified Holdings(NYSE:CODI). See the chart below for the complete list of the 20 positions that yield about 7%.

Again to mirror my actual situation, I will just be accumulating any dividends/distributions until the end of the year and start withdrawing in 2015. Also no matter what your target yield, I believe we should be "earning" more than we withdraw, so I will plan on withdrawing 6% the first year. If all goes well, and there are no cuts in payments, I...