Guide To Building A High Yield Dividend Portfolio

High yield investments are “in” more than ever before. Why? Partially it’s because dividend investing is a proven method to generate good returns but also because in this era of very low interest rates, the traditional retirement investment doesn’t work so well. If you were planning on investing in stocks over your working years and eventually moving to a fixed income portfolio only in order to live off of it, I’ve got some bad news. You’ll need millions in order to survive off of 1% interest rates.

I’m looking to build a portfolio that will:
-generate around 5% dividend yield
-have relatively stable income from year to year
-will generate decent total returns (yes income/yield is important but capital preservation is also critical)
-will be highly diversified (in terms of sectors, asset classes, geographic exposure, etc)
-hold sustainable companies (I’m not interested in holding a stock that is hanging on for its life, no matter what the yield is. Distressed stocks is an interesting investing method but I wouldn’t base my retirement on it)
-limit the time required to maintain the portfolio (both in looking for stocks but also in managing taxes, international stocks, etc)

Source: Guru Focus

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