Good news for AZN, AstraZeneca's asthma treatment and this 2013 Dividend Machine.

M*

http://seekingalpha.com/news/3206982-astrazenecas-benralizumab-reduces-asthma-exacerbations-51-percent-two-late-state-studies?source=email_rt_mc_readmore&app=1&uprof=46#email_link

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DIVIDEND PERFORMANCE July 15, 2013

ARE DIVIDEND STOCKS STILL GOOD IDEA?
  

Building a portfolio that delivers income when you no longer work is the goal of every income investor.    

Many theories exist to accomplish that goal.   I remember in the early 1980’s learning about dollar cost averaging and it seemed to me that I always bought higher and did not get any advantage from the market’s ups and downs.   It was frustrating to see my mutual fund buys at higher and higher costs.  

Then I became an investment professional and learned that if you are going to invest for income, you have to buy stocks that pay income.   However, we all want to know how those stocks are “doing.”  In this post, I have a table that reviews my 2013 dividend stocks.

2013 is challenging for the yield starved investor.   We are risk averse investors because we have to live off the money our portfolio generates.    Yet, the deposits that show up in the bank are not quite enough; we also like to see how our principle is doing.

If you started investing in 1980, you have done really, really well.   If you started investing in 2011, you have done quite well.   But what if you just started in 2013, when the market is at a top, how have you done?    

So far in 2013, I have profiled 14 stocks.   I own them all.   I want income and I am hoping to preserve capital, and maybe even realize some capital gains.    I selected these 14 stocks using the simple discipline of TheMoneyMadam:  the company has to make more money in earnings than it pays out in dividends, the dividend has to be at least three percent, the dividend has to have increased every year for at least five years and the company has to have a reasonable debt to equity ratio.

2013 DIVIDEND MACHINES Bought 100 Shares
Basis		$    55,668		Div. Income	$    2,494
Value		$    60,001		Yield on Basis	4.48%
$ Gain		$      4,333		Current Yield	4.16%
% Gain		7.78%
Stock Prices close on 7/11/2013				Stock Quotes Provided by MSN Money
				Click here to visit MSN Money
Symbol	Date Acquired	Current Value	Current Dividend	Basis	Capital Gain	Dividend Yield
GAS	7/8/2013	$      44.72	$     1.88	$       42.65	4.85%	4.20%
NHI	6/20/2013	$      62.64	$     2.94	$       59.20	5.81%	4.69%
MDP	6/9/2013	$      48.30	$     1.63	$       41.09	17.55%	3.37%
AZN	5/20/2013	$      49.58	$     3.80	$       52.64	-5.81%	7.66%
BCE	4/29/2013	$      42.17	$     2.29	$       46.13	-8.58%	5.43%
COP	4/9/2013	$      64.84	$     2.76	$       59.84	8.36%	4.26%
VVC	2/25/2013	$      35.47	$     1.42	$       33.02	7.42%	4.00%
RTN	3/22/2013	$      69.47	$     2.20	$       57.50	20.82%	3.17%
MGRC	3/21/2013	$      34.70	$     0.96	$       31.21	11.18%	2.77%
SYY	3/11/2013	$      35.60	$     1.12	$       33.27	7.00%	3.15%
CINF	2/19/2012	$      49.18	$     1.63	$       44.84	9.68%	3.31%
MCHP	2/7/2013	$      39.44	$     1.41	$       33.94	16.21%	3.58%
INTC	2/4/2013	$      23.90	$     0.90	$       21.35	11.94%	3.77%
DRI	1/16/2013	$      50.43	$     2.20	$       45.36	11.18%	4.36%

Currently this group of stocks delivers a 4.48% dividend yield on my principle.   My investment value has increased 7.78% and the yield on this increased capital is 4.16%.

Look at this table and consider learning how to invest for income by buying stocks that pay dividends.  

Do not listen to the pundits; dividend investing is still a good strategy for income investors.

TheMoneyMadam

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