Readers of this space know that the primary focus of my income portfolio is to create ever-increasing income by investing in dividend growth securities. This means that often I will choose a lower yielding security with better dividend growth prospects over a higher yielding security. However, as one that values diversity, I also invest in some high yield securities. Here are some of the better performers, along with my life-to-date return:
National Retail Properties, Inc. (NNN) is a real estate investment trust (REIT) that invests in high-quality, freestanding retail properties subject to long-term net leases with major retail tenants.
Purchased: September 2005 | Life-To-Date Return: 5.04% | Yield: 7.58%
Realty Income Corporation (O) engages in the acquisition and ownership of commercial retail real estate properties in United States.
Purchased: May 2006 | Life-To-Date Return: 5.75% | Yield: 6.53%
Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund (ETO) operates as a diversified and closed-end management investment company. The fund invests primarily in common and preferred stocks of the United States and foreign issuers.
Purchased: July 2008 | Life-To-Date Return: 7.97% | Yield: 7.80%
Health Care Property Investors, Inc. (HCP) operates as a real estate investment trust in the United States. The company, through its subsidiaries and joint ventures, invests in health care-related properties and provides mortgage financing on health care facilities.
Purchased: March 2005 | Life-To-Date Return: 10.92% | Yield: 6.56%
CenturyLink Inc. (CTL) provides a range of telephone services in 25 states, with operations concentrated in Alabama, Arkansas, Louisiana, Missouri and Wisconsin.
Purchased: November 2008 | Life-To-Date Return: 32.50% | Yield: 8.28%
High-yield securities often carry a higher risk factor. Before adding any security to your portfolio you should understand its effect on your overall portfolio's risk and allocation.
Full Disclosure: Long CTL, ETO, HCP, NNN, O. See a list of all my income holdings here.(Photo Credit)
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Posted by D4L | Friday, February 12, 2010 | commentary | 2 comments »________________________________________________________________
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How can you title these "Positive Returns"? Aren't you the one that asks the question:
Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA)?
Additionally if you had followed a simple CD laddering approach, starting in 2005, you'd be much better off
Are these yields current yield or yield at cost?
Anon: I am not sure I understand your comment? The life-to-date annual returns range from a low of 5.04% to 32.50%. All positive and in excess of the 20-year MMA rate and any CD rate since 2005.
The yields are current.
Best Wishes,
D4L