S&P Portfolio for Steady Dividends

03/04/2015 8:00 am EST


Investors looking for income from their investments generally want that income to be paid out regularly throughout the year, observes Beth Piskora of S&P Capital IQ in The Outlook.

To help investors accomplish this, we've grouped 18 stocks according to the dates on which they usually pay quarterly dividends.

By purchasing just six of these issues—one in each time slot—you would receive two dividend checks per month during the course of the year.

Early Jan., April, July, Oct.

Baxter International (BAX)—yield 3%
Disney (DIS)—yield 1.3%
Nike (NKE)—yield 1.2%

Mid-Jan., April, July, Oct.

General Electric (GE)—yield 3.8%
Kraft Foods Group (KRFT)—yield 3.4%
Windstream (WIN)—yield 13.3%

Early Feb., May, Aug., Nov.

AT&T (T)—yield 5.7%
CVS Health (CVS)—yield 1.4%
Hasbro (HAS)—yield 3.2%

Mid-Feb., May, Aug., Nov.

Celanese (CE)—yield 1.9%
Costco (COST)—yield 1%
Lazard (LAZ)—yield 2.6%

Early March, June, Sept., Dec.

Coca-Cola Enterprises (CCE)—yield 2.4%
Conoco-Phillips (COP)—yield 4.5%
Cummins (CMI)—yield 1.8%

Mid-March, June, Sept., Dec.

Chevron (CVX)—yield 3.4%
ITC Holdings (ITC)—yield 1.7%
Travelers (TRV)—yield 2.4%

As an example, you could buy 100 shares of Baxter, 200 shares of Windstream, 105 shares of AT&T, 165 shares of Lazard, 70 shares of ConocoPhillips, and 45 shares of Chevron—and with these 6 holdings—receive monthly income of about $100.

At recent prices, the six-stock portfolio would cost $28,885 (before brokerage commissions) and provide annual income of $1,200, for a yield of 4.2%, double the recent 2.1% yield on the S&P 500.

In addition, all the stocks in the table are Master List issues and are ranked 4- or 5-stars for expected above-average price appreciation during the next 12 months.

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