REVEALING MY $73K DIVIDEND STOCK PORTFOLIO

what's up you guys welcome back to the average joe on money financial channel i'm really excited to bring you today's video i'm revealing to you my modified fidelity dividend stock portfolio and as you've known previously on different videos i've let you know that i was reevaluating my portfolio because over time what had happened is it had kind of ballooned to 37 38 different stocks and during covet i lost sight of some of them and while i didn't experience a dividend cut which was great i still lost sight of them and i didn't want that to happen again in the future plus i just wanted to have a really core set of holdings that i can then reinvest in on a monthly basis so in this video i'm going to share with you exactly what the portfolio looks like in my dividend stock portfolio spreadsheet and just as an fyi to you guys for those of you that are in my patreon community i'm going to uploa upload a more updated dividend spreadsheet that's going to include this tab that shows the exact holdings that i'm buying and owning right now um so just be on the lookout for that on the patreon site and if you're not a current member of my patreon community you got to jump on over and join here and see what all the fun's about i provide an updated monthly dividend stock portfolio spreadsheet with all the different dividend stocks that have been raising their dividends for at least five consecutive years and i include extra data in there about their dividend payout ratio based on free cash flow their dividend growth rates and just which stocks i own in my own portfolio there's a separate tab there where you can see exactly what my holdings are if you're looking for a link to my patreon community check out that link in the description below now let's go ahead and jump onto my computer screen let's take a look at what my criteria is when i pick dividend stocks and we'll look at my actual portfolio and break that down all right guys so here is the dividend stock portfolio spreadsheet like i mentioned this spreadsheet includes all the different dividend stocks that have been paying dividends for at least five consecutive years and increasing that dividend that's an important component and all the stocks that i own in my portfolio are from this spreadsheet now really quick i would just want to summarize for you what my criteria is my philosophy when it comes to owning different dividend stocks i definitely pick stocks that have been paying dividends consistently for at least five consecutive years i own a few stocks that are dividend challenges for but for the most part i like to look at contenders and champions um primarily because they have shown with a contender at at least 10 years but less than 25 and with a dividend champion at 25 years plus these are companies that have weathered crisis crisis crises and they continue to pay a dividend their company is stable and they have the ability to make adjustments throughout the year to make sure that they can continue prioritizing dividends to shareholders so i want to see a dividend payout history of at least five plus years if not 10 to 25 years in the spreadsheet you can see that here right here at the dividend here you can see number of year consecutive years and you can see the dividend here right here challenger is for five years to nine years contender is 10 years to 24 years and then champion is 25 years plus now we also include in there the last fiscal year end and the payout ratio free cash flow last fiscal year so the standard for dividend payout ratio is to look at net income however i think this is flawed fundamentally because net income includes a lot of different paper expenses that don't make their way into actual cash flow and cash flow to the business is what is going to be the ultimate determining factor for whether or not a dividend can be paid because free cash flow is the money available to the company to do to pay dividends as well as to invest in share buybacks and things of that nature so this column right here this payoff ratio measures how much their their dividend is every year how much money goes to the dividend compared to how much is available in free cash flow so they don't have the free cash flow the money's got to come from debt and we don't want it to come from debt we want it to come from actual recurring cash coming into the business so it takes the dividends paid divided by the free cash flow to get a number here this percentage i want to be less than or equal to 75 generally i'm willing to go above 75 for long-term very stable companies i think companies like coca-cola and pepsi and procter gamble i'd like to keep it below 75 on the payout ratio but if i can get a stable company that's got really stable earnings and a stable outlook that i'm willing to go above 75 but it's definitely the exception to the rule and on this spreadsheet we can see here that the numbers that are below 75 are going to be green um and then i believe i haven't yet anything between 75 and 85 are going to be green uh yellow and then anything above 85 or any situations where there is negative free cash flow they have they don't even have cash available yet they're still paying a dividend which is a warning sign to me and that's in red as well so you can filter that here by green so i'll go ahead and do that because all the stocks i chose for the most part are going to be either green or maybe a yellow or potentially a red maybe i'll show you in just a second and then we've got dividend growth right here so another big priority for me is dividend growth this portfolio that i've created has a very specific purpose which i've talked about on my channel i want this dividend portfolio to cash flow for me a big trip our family is taking in three to four years here where we are going on an rv a massive rv like think like 40 to 50 feet long rv with our family of six and we are going to travel the country and see all that there is to see in the lower 48 states it's going to be a great opportunity for us to grow as a family we're really excited about it but it's going to cost money in addition to working and having youtube income which is great i want to have a portfolio that can cash flow as much of the expenses as possible there's a specific divine purpose with this portfolio which is why i own it in a taxable account i'm going to need the money before retirement and one of the factors i'm looking at here besides reinvesting my dividends which i do with all of my dividend stocks i also want to have a dividend that's growing every single year but it's got to be growth in the dividend that's actually worth it right if if the dividend is growing by one percent every year good for them but you know i've got inflate i've got historical inflation rates that are in the twos and threes so i want to see a dividend growth which is at least gonna match or slightly beat inflation if not blow it out of the water so i like to own dividend stocks with a dividend growth rate of five to ten percent growth every year sometimes even higher than that is great um but at a minimum i want to see at least three percent on the dividend growth rate to know that it's at least keeping up with the historical inflation rate so those are the big factors for me i want to own dividend stocks that i'm paying dividends for at least five consecutive years though i do put more emphasis on 10 years plus and 25 years plus i also want to have dividend stocks that have a dividend payout ratio based on free cash flow generally of less than 75 the lower the better again because that tells me two things number one the dividend payout is stable it's going to continue to happen and number two it's going to mean that that dividend can grow in the future so dividend payout ratio is important for me and then dividend growth rate as well i want to see dividend growth of at least three percent year over year if not higher and then lastly i didn't even mention this yet dividend yield right um dividend yield is important for sure because that's going to lead to how much cash you're getting based on how much you're investing in the stock so i definitely want to see a dividend yield generally of at least three to four percent and i'll show you the dividend of all the different stocks in my portfolio for larger companies that have a really stable dividend payout um i'm willing to accept a little lower dividend yield it's kind of like foundational stability for the portfolio a lot of the different stocks my portfolio will yield more than three to four percent but some of them are yielding the twos and i accept that because it kind of brings balance to my portfolio stocks that i never really have to worry about they're going to continue to pay dividends no matter what so let's go ahead and take a look at the new portfolio that i have purchased so i'm going to click down here to the average joe portfolio and here's the portfolio we've got a total of let's click here one two three four five six uh blah blah blah blah blah blah we've got 20 different dividend stocks okay that's exactly what i was shooting for if we filter by sector first we can see here i do have one business development company more on that in a second i've got two different dividend stocks in the consumer discretionary sector of the economy consumer staples i've got two i've got one energy stock i've got one two three four financial stocks i really had to trim back there i had like seven or eight that was actually a hard choice for me i've got three different health care stocks i've got one stock in the industrial sector one in information technology one in materials two in real estate and two in utilities furthermore if we look at the breakdown based on dividend tier you can see here i've got a pretty good blend here i've got one two three four five six seven eight different champions i've got one two three four different contender stocks and i've also got one two three four five six seven different dividend challengers and you can see here the consecutive years if i sort by years you can see i've got certain stocks here at 64 consecutive years 58 48 45 45 years and as low as six years six years seven years down here if we look here at the dividend payout ratio you can see that most of my dividend stocks that i own have dividend payout ratios based on free cash flow of less than 50 60 although if we scroll down here i do have a few that pop over 75 i will explain what those are in just a second and why i chose those specific dividend stocks if we scroll over here we can see yield by sort by yield from largest to smallest you can see my largest yielding stock nine point four four percent on the yield then i've got eight point three eight here six five five four four four four four four three three three three and then a few in the twos two point four three two point five two two point eight seven percent you can see here the weighting in the fund is based primarily on the yield i definitely wanted to break bring my dividend yield up a little bit and as a result i added a little bit more um weighting in the stocks that were yielding four five six seven percent not a bunch you can see here that if i go by waiting if i sort by waiting um we've got seven six six six six six six five five and you can see that those are yielding a little bit more whereas the stocks that yield two or three percent are down here at the three and a half percent four and a half five percent so definitely got some balance there you can also see that looking at the dividend growth rates here that all of my dividend stock here are green on the dividend growth rate not sure what happened with the formatting on this one right here but all the one-year growth rates are in the three four five six seven eight nine ten twelve fourteen nineteen percent here and then on the three five and ten year growth rates all really strong here some of them in double digits so really big priorities for me all right guys let's take a look at the actual dividend portfolio here again really excited about these different 20 stocks here we'll start off here you know i like abbvie i told you i like that v i told you i was going to own that v and i own that v so i'm going to own app v here i've already got a pretty large holding here and so i'm adding to it i've got abv in the healthcare sector i've got aeris capital which is a business development company a little bit different than my average holding here it's really for cash flow purposes just to give some balance there and add a little bit more cash flow business development companies tend to invest and use their money and they lend money generally to small companies as they're growing and so that leads to a lot of cash flow for these companies and very consistent cash flow we then we've got broadcom here this is in the information technology sector i really like broadcom because their dividend growth rate is really strong here and it's really hard to find a quality dividend stock in the information technology sector really excited about my holding in broadcom i already held it i'm just adding to my shares there genuine parts again one of those stable companies 64 years of consecutive dividend growth some people in the past have mentioned maybe some concerns about owning genuine parts because they're focused on replacement parts but only for internal combustion engines as opposed to electric cars yes that might require them to flex in the future but as a company that's so stable i can see them making that adjustment in the future and if they don't end up doing that i'll sell the stock and i'll buy a different stock but i like genuine parts here i've also got gilead sciences which is one i haven't talked a lot about they're in the health care sector they've got a lot of great metrics here if we scroll over for gilead here we can see that they're a dividend challenger at six consecutive user growth their dividend payout ratio forty percent um their yield right now is four point three five percent and their dividend growth is in the 7 9 16 range great stock johnson and johnson in the healthcare sector one of those companies that's not going to yield a lot right now but they're one that i really never have to worry about from their dividend quality they've been raising dividends for 58 consecutive years dividend champion and still their dividend payout ratio only 51 percent they only yield 2.52 right now and their growth is at 6 every single year which is amazing in the financial sector i've got manulife financial corporation um i've already owned them i'm just adding to them they've got a really low payout ratio which means that that's a stable dividend manulife offers investment and insurance solutions for americans and canadians in canada they operate as manulife financial but you might recognize the name in america as john hancock solution so a great company there they have a dividend yield right now 5.92 percent and their dividend growth rate is in the double digits so i like them um i've also got mcdonald's corporation mcdonald's another company that i don't need to explain what they do obviously but they're a dividend champion 45 years of consecutive growth a little bit higher on the dividend payout ratio but still only 70 percent here and you can see their yield right now a little bit lower at 2.43 but their dividend growth is strong as well it's a company that's one of those core you know foundational holdings in the portfolio i've also got msc industrial in the industrial sector the economy a dividend contender their dividend payout ratio only 55 their yield 3.55 and their dividend growth rate in the 8 17 13 13 range down here we've got pepsico this is a new holding in my portfolio every other company so far with the exception of pepsi and gilead we're already in my portfolio i'm just kind of consolidating into these companies but i added pepsi um they're a dividend champion here what's what's held me back in the past from holding pepsi is their dividend payout ratio if you look here their dividend pair ratio is at 88 percent that has caused concern for me but i've really gotten a little lacks on that with respect to strong foundational long-term dividend-paying stocks so if it was at 88 and it was a newer dividend challenger or dividend dividend contender or even a brand new dividend champion i might be a little bit more concerned but pepsi has been paying dividends for 48 years they have a very stable growth model their business has both the snack foods as well as the drink beverages and they're very stable with their free cash flow every single year so while 80 is higher even in good times bad times people are still gonna buy the products that pepsi sells to them so that's why i own pepsi it's a new holding for me they're not going to get a massive holding in my portfolio i think uh three and a half percent waiting but they've got a dividend yield right now of two point eight seven percent and their dividend growth is at five eight point three seven point eight percent uh there for the one three and five year growth rates we scroll down here we've got realty income another new holding for me i consolidated in my real estate platform um i had three different real estate stocks i felt i had a little bit overlapping real estate exposure with when it came to health care i like that realty income is a dividend a monthly dividend paying stock here they've been paying dividends for 28 consecutive years growing every single year and they're a dividend champion you'll see here their dividend payout ratio is 82 which is generally concerning however when it comes to real estate investment trusts they are required by law to pay out at least 90 percent of their taxable income every single year in order to keep their preferred tax preferential treatment so 82 on the dividend pay ratio not a concern for me because it's a real estate investment trust their current yield four point seven eight percent they're gonna get a six percent uh weighting in my portfolio at the outset and their dividend growth meets my minimum expectations just barely 3.1 3.3 4.2 percent so i like holding them and that's going to be a great holding for me when i start to take out monthly distributions during our rv trip in three to four years next up here regions financial i love regions financial they they've been in my portfolio for a long time since the beginning they're in the financial sector the economy they're a dividend challenger at eight years of growth only twenty percent on the dividend payout ratio based on free cash flow they're currently yielding three point one percent um and they have a they have dividend growth of 7.8 25 23 and 31 so i like holding um regions financial star group unit i told you i was going to hold this dividend stock i mentioned star group in my last dividend video about five stocks to own here in 2021 star group unit is in the utilities sector of the economy they deal primarily with propane as well as other hvac systems they're a dividend challenger with eight years of consecutive dividend growth they've their dividend payout ratio even during covet has been very stable which is one of the reasons why i like this utility stock 14 percent on their dividend payout ratio that tells me it's super stable and the ability to grow is there for sure dividend yield right now five point six three percent they're getting a six percent waiting in my portfolio and the dividend growth rate is six six point five seven six point one percent so very stable dividend growth as well next up on the list is store capital corporation this is a new holding it's a real estate investment trust and i really did some research on this one i really like store capital they're big on business to business holdings so they own real estate that are owned by businesses and not only they look to collect rent from the companies right obviously but they also look at the overall credit quality for the owners in case that person's specific business at that specific location is not able to performers performing lower they're able to look at the overall credit quality before they even enter to a lease they look at the overall credit quality and other businesses they own and they look for strong performing assets elsewhere so that in the event they have trouble with their existing location they can still pay their rent from other assets as well and then of course they also benefit from capital appreciation in their real estate so i like store capital i did a lot of research on them they've been paying dividends consecutively for six years they're a relatively newer real estate investment trust but i like what i see there even though they have to pay out 90 of their taxable income still their dividend payout ratio based on free cash flow 69 percent um they're getting a six percent waiting in the portfolio they currently yield 4.59 in their dividend growth rate at 5.2 6.1 9.8 for the one three and five years next up here is another new holding in the portfolio first of long island corporation ticker symbol f-l-i-c sorry i haven't been mentioning the ticker symbols here but you can see them on the screen it's a dividend champion it's a company you've probably never heard of it's a smaller bank on the east coast of course in the new york area dividend champion 25 consecutive years of dividend growth here their dividend payout ratio 37 here and you can see here they're waiting in the portfolio is going to be six percent and their dividend yield right now four point zero six percent and they've also got dividend growth 5.8 8.6 7.3 7.2 percent here great holding here that i'm really excited to have then i've got ugi corporation which was already holding in my portfolio they're in the utility sector the economy they're a dividend champion 33 consecutive years of growth 60 percent on the dividend payout ratio based on free cash flow which is really great for a stable utility company we've got a dividend yield right now of 3.77 percent they're going to get a 4 waiting in the portfolio at the outset and their dividend growth right now is in the double digits 14.4 10.3 8.1 8.1 on the 135 and 10 year growth rates next up we've got unum group which is a company that deals with employers and offers benefits and insurance you might see them on your pay stub potentially as one of those deductions you have for benefits so unum group is in the financial sector they've got 12 years of dividend growth consecutively they're a dividend contender 15 on their dividend payout ratio based on free cash flow super stable even during covid a company that i'm really excited to own long term they've got a yield right now of 4.85 percent and they're waiting in the portfolio is gonna be six percent we've got dividend growth here 4.6 9.9 10.2 and 12.5 for the one three five and ten year growth rates further down here we've got valero a company that i already own it's the one energy stock in my portfolio here valero energy corporation 10 consecutive years of dividend growth a dividend contender with only paying out 42 now they did struggle a little bit during covid but they've bounced back um i didn't want to have a massive energy exposure because you know with cove it's still kind of up in the air and and energy demand but i like valero i like their dividend yield and i've just had an opportunity to research them a little further they have a different business model than a lot of different energy stocks so i like holding valero right now their dividend yield is six point five seven percent they're going to get a five percent weighting in the portfolio and their dividend growth here at eight point nine eleven point nine eighteen point two and then on the 10-year growth rate 35.9 most recently 8.9 percent though a great holding import in the portfolio then i've got walgreen boots alliance here next one on the list a dividend champion 45 consecutive years of dividend growth i've talked about walgreens how um there's the stock that not a lot of people are talking about yet it's such a strong and stable dividend pair i couldn't help but keep it in my portfolio and grow that position they're right now yielding 4.13 percent they're getting a six percent waiting in the portfolio and their dividend growth rate right now is at 3.1 6.1 5.8 percent and then 11.5 on the 10-year growth rate and then lastly in the portfolio i've got westlake chemical here westlake chemical partner it's a master limited partnership here they're in the materials sector of the economy they have seven consecutive years of dividend growth their dividend payout ratio but at 15 percent despite cobit almost had no measurable impact on the payout for this company fifteen percent on the dividend payout ratio based on free cash flow right now yielding eight point three eight percent they have a seven percent weighting in the portfolio and then the dividend growth right here four point seven nine point four and ten point four percent this is the portfolio guys i'm really excited to follow this and track this over time here it's much more consolidated than the 36 37 stocks i had my portfolio i like every single one of these holdings and i will keep you up to date here i plan on unless i see a really hot dividend stock that would replace one in my portfolio i don't plan on moving any of these stocks out of the portfolio unless they stop meeting my metrics when i have the ability on a monthly basis to invest more money i'm going to invest in these different dividend stocks based on their dividend yields at the time while also trying to keep balance amongst the different dividend stocks i want to hear from you guys let me know with your two cents in the comments below which of these dividend stocks do you like which ones do you don't like which ones do you think i should have my portfolio that i do not have and make sure you tell me why as well and let me know which other dividend stocks you want me to research and present to you guys on the channel here make sure to leave your two cents in the comments below that's all i got for you guys have a great rest of your day and please continue during this pandemic to stay healthy both physically and financially have a good one

Channel: The Average Joe Investor

Views: 10,875

Rating: 4.9590163 out of 5

Keywords: dividend stocks, dividend stock portfolio, dividend portfolio, dividend stock, dividend stocks portfolio, dividend stocks to buy now, dividend stocks 2021, dividend stocks to buy, dividend stocks for beginners, dividend stocks andrei jikh, dividend stocks to hold forever, dividend stocks for passive income, dividend stocks to buy nowe, dividend stocks to holf forever, dividend stocks for begginers, average joe on money dividend stocks, Average joe on money

Id: dv3BZyDIkJM

Length: 23min 13sec (1393 seconds)

Published: Mon Jan 11 2021