Actionable news
All posts from Actionable news
Actionable news in T: AT&T Inc,

Yes, You Can Still Build A 4% Yielding Portfolio In Today's Market


A common complaint I see on Seeking Alpha is that the market is too expensive and there are limited opportunities for income investors.

Despite certain sectors being expensive, there are still plenty of dividend growth stocks available at reasonable yields and valuations.

I present a diversified 25 stock portfolio of quality companies providing a overall yield over 4% at today's prices.

Elevated Market = Elevated Anxiety?

The return of the bull market has elevated some investors' fears that they've missed out on cheap prices and no longer have any good places to invest their money. This fear of overpaying can cause people to stay on the sidelines and miss out on getting the compounding train rolling in building a portfolio for retirement.

Sad Sky Trooper Investor

I understand this mentality as the recent volatility can certainly put fear of losses in one's mind. However, the market is composed of thousands of stocks, and despite stretched valuations from some of them, there are still decent opportunities available for investment.

Last July, in response to a challenge posed by a reader, I decided to put together a dividend growth portfolio for a theoretical investor who had come into a large sum of money. After 8 months, the portfolio has performed quite well, with a gain of 6.1% compared to -1.3% from (NYSEARCA:SPY), and also an increase in income of 1.6% to date.

Last week, I received a message from another reader who is 61 and looking to put some cash from a 401k rollover to work in equities. He wasn't happy with options in his current portfolio, and was looking for some new ideas to further diversify his income.

I had already considered putting another sample portfolio together, so this added request seemed like a good reason to get busy and get it done. As an engineer I embrace another opportunity to build a spreadsheet, so once again, I accepted the challenge!

Portfolio Assumptions & Strategy

As mentioned, this portfolio is designed for the soon-to-be retiree that is looking for dividend income as well as the opportunity for capital and income growth. My assumption is that this investor is looking to buy companies that are offering above average...