The other day as I was reading some articles, it occurred to me that everyone seems to have their own flavor of the meaning of life – or in DGI terminology, how safety is valued. Some have standards pertaining to S&P credit ratings while others use Value Line or their brokers’. Yet others are mixologists, concocting their own blend of interesting criteria.
There are companies that as a normal course of operation pay a portion of their dividends in stock (sometimes referred to as script). I’m not referring to companies that lack the cash to pay the dividend either, as a number of these companies are resident on the CCC list maintained by David Fish. Some of these pay a stock dividend irregularly while others pay a stock dividend annually. So the ultimate question is which is better for the investor? Let’s dive into a real example to get the answer.
Whimsical Dividends recently wrote a piece on monthly dividends – posing some good and thoughtful questions. So rather than answer in a lengthy response, I figured this would be a good starting point for my weekly (or thereabouts) post.
When I first started investing one of my goals was to build a monthly paying portfolio. This goal was achieved many years ago. But when I retired, I guess I had too much time on my hands so I wondered if it was possible to build a weekly paying portfolio. To this end I have pretty much succeeded.
My research began with Dave Fish’s CCC list. A wonderful repository of data. I also used articles by Dividend House as a resource. Although she’s a recent convert to DGI, and I’m not at all in full agreement with some selections, her style and illustrations make her a must read.
My end result is I have placed 26 companies (of about 105 in my portfolio) into three categories, segmented by quarter, with two payees per week. The result is (almost) weekly payments.
(updated 26 Oct due to PNY merger)
|1||A||Kimberly-Clark||KMB||1||C||PNC Financial||PNC||1||A||WEC Energy||WEC|
|3||C||Sysco||SYY||3||C||Legacy Texas||LTXB||3||C||Home Depot||HD|
|4||C||Bnk of The Ozarks||OZRK||4||C||Starbucks||SBUX||4||C||Blackrock||BLK|
|2||C||First Long Island||FLIC||2||S||Apple||AAPL||1||S||Southside Banc.||SBSI|
|4||S||Lake Sunapee Bnk||LSBG||4||S||Webster Financial||WBS||3||S||Norfolk Southern||NSC|
|2||S||First Midwest||FMBI||4||S||Flushing Financial||FFIC|