Hi.
Would love any feedback on the following ideas for a more prominent dividend portfolio, also have a couple of growth stocks too. The idea is to add to the portfolio in small amounts each week, also to build a cash fund for any major drops in prices.
I’m thinking both US & UK holdings and maybe an ETF to see how i do against it.
The stocks i would have are all companies i have a little knowledge about, most household names, so that does help me. I would also reinvest any dividends back into the very same companies.
US dividend stocks…
MMM
ABBV
T
KO
MCD
QCOM
O
V
US tech, (small amounts of funds)
AMD
INTC
SQ
TSLA
UK dividend stocks…
BA.
BATS
DGE
GSK
LGEN
POLY
SN
UK spec, (small amount of funds)
BOO
GRG
ETF
VUSA
This is just my initial idea, to start with companies i know a little about.
Its probably a complete disaster portfolio…I just want to build a fund that will grow, give me a little money each year and maybe pass it on to future generations.
Thanks
Please be a critical as poss, i have broad shoulders… Thanks again
It’s actually not too bad. It’s very generic dividend YouTuber in its approach, but it’s not a bad portfolio.
Personally I’d bin off BATS from the bunch, you can do much better then that by picking anything else. I’d also consider swapping Poly for Rio Tinto as they’re a much more well rounded miner in a better jurisdiction, with a better div yield.
If you are looking for ideas for UK and US dividend shares, you should search for “US Dividend Aristrocats/Champion and UK Dividend Aristocrats/Champions”. The results will give you a list of companies paying an unbroken stream of dividend for a long period of time. However it is not a guarantee that these companies will continue to do so into the future (Recent example Shell). But is a good bet due to their previous track record.
Also if you are looking for ETF to compare you might want to add one that tracks the FTSE 100 to cover your UK individual shares.
I like BATS but IMB might be better, I agree on the RIO instead of poly.
@Explorer2 I’m a bit surprised by the lack of msft, not your cup of tea? I hear they may buy TikTok. And Nvidia buying ARM might hurt AMD. Not saying it will or won’t, just some things to think about and research.
DGE is a pretty solid performer, completely removing UK would leave him heavily exposed to the US. If he was to replace the UK with some rest of world ex-US ETF, I could see that working for diversification but might hamper the dividends he wishes to receive. I know wisdom tree equity income ETFs have region specific ones for eurozone, Asia, UK and US but these are not available on t212
See whilst I’d do that myself. I don’t actually think the UK stocks are that bad and are all stocks that I would consider, if I was starting a dividend portfolio.
As I’m just starting the more info I get the better it will serve me later.
I’m in the UK and would like a little exposure to the market I think. I get to hear and see things, like the economy, see how builders are working, see how busy retail actually is.
I like;
DGE
BA
GSK or SN
LGEN
POLY or RIO
BATS to go.
Maybe TW or AHT
I think they are fairly strong companies, not too volatile I hope. Just need to trim down to a manageable amount, so as to not get too confused with them all.
Might also take the Vanguard FTSE etf to see how that does against my holdings, it’ll at least give me some idea how far away I am from picking a good stick.
Would you agree with the above as someone starting off?
Once I’ve started investing the idea is to start paying every two weeks and then keep going.
Thanks for all your feedback, it’s really appreciated.
Thank you.
I think the UK is a keeper for me.
This’d be a lot easier to judge if I knew how close you were to retirement
overall looks ok, Like many people mentioned some of those UK stocks despite being high dividend payers are low quality and with limited future.
If I were to pick UK stocks that pay dividends with possible upside I’d go with DGE (actually a big fan) PNN (safe utility) BNZL and CPG I normally would not consider CPG because of the cyclical nature(although they are diversified) but they got pretty beaten up by this covid and going at a massive discount at the mo.
in US I’d probably replace KO, again if the purpose is dividends here and even keeping in the same non-alcoholic beverages sector, you can swap it 1 to 1 with pepsi, compare their dividend raises YoY huge difference. I am holding CHD and HRL in my portfolio for many years and despite being “boring dividend consumer staples” again take a look at their growth and dividend groths. I have no regrets
Also looking at that whole portfolio there is a black duck there no one mentioned I held tesla from 190$ levels until 700$ so I am not an anti vegan petrol head, but I sincerely think levels of 1500 is such a steep entry point for what tesla offers at the moment. Especially if this is your first entry to stock market.
I was recently looking at Bunzl, seems fairly solid tbh. DGE is definitely one of the best from the UK. I also would agree with PEP over KO, their growth continues and as they own many snacks not only beverages they are more diverse.
National Grid is ignored a lot, but it’s US operations are doing pretty well. Just throwing that out there.
Tesla may have room to grow quite fast still from 1500, or it might drop off a cliff. With a stock that behaves so volatile any point could be a good entry point or might be the worst entry point. Impossible to know. I completely blanked that it was mentioned in the first post, yes wouldn’t really recommend as a starter stock at current price unless he really likes living on the edge looking at it again he did say only a small amount of funds into it, so I’m guessing that’s his coin-flip growth stock.
Out of interest, why are you optimistic with PNN?
Its not a criticism, just understanding. From a quick look on T212, it seems to have a highish P/E ratio and debt.
I agree with National Grid, I am fairly optimistic with it. It is probably my biggest UK position, the other one being IAG (British&Spanish group), but that one is much more risky and long-term (Some would say “speculative”).
IAG risky indeed, but if they survive then the gains should be significant once travel becomes more commonplace again. Same with any company hit by covid-19, with so many competitors closing it’s a huge opportunity for the survivors.
Hi, I think both questions has similar answers, if you zoom out about may be 5 years you’ll see almost all metrics are improving and the big depth has been a problem for a while. on the other hand you’ll see eps drops for last year and this year as wel, this mainly more income is dedicated to pay off debt, the high amount of debt we see in balance sheet today is actually less than half of what it was 2 years ago.
so lower earnings lead to a higher P/E ratio.
If you want to point out at warning signals ebout PNN I think the biggest one is 150%+ payment ratio, although the cashflow supports this today i don’t think it will be sustainable.
I did not say, it is a gold mine, but it is still a good choice for a conservative portfolio. And it is though to balance your portfolio to UK.
Some fella.
the Aviva.
I held tesla from 190$ levels until 700$ so I am not an anti vegan petrol head, but I sincerely think levels of 1500 is such a steep entry point for what tesla offers at the moment. Especially if this is your first entry to stock market.
looking at it again he did say only a small amount of funds into it, so I’m guessing that’s his coin-flip growth stock.