Mar

6

My Dividend Stocks (2007 Q1)

March 6, 2007 |

As a response to my 2007 Financial Resolutions posting someone asked what dividend generating stocks I use. I do have a mixture of growth stocks and cash cow stocks. Some of the growth stocks generate a small amount of dividends (and I still count those towards my yearly dividend goals), but that is not the point of this article: cash cow stocks are.

Most of my dividend portfolio is based on banks, as described on my article Deposit at the Bank or Own The Bank. My father-in-law says (I rephrase) that any business that gets money in one hand and gives money away with the other hand is surely keeping something for themselves: a spread, a commission, administrative charge, or simply some revenue. Most importantly, they make money out of nothing at all: none or almost no inventory. Banks, casinos, insurance companies, and money changers fall into this category.

I also keep stocks in a vice company: Altria / Phillip Morris (MO). This company provides mostly cigarettes, and at a lower extent beer. When people are successful they celebrate with their products and when they are depressed they refuge themselves in their products as well. I do not share Altria’s values, but they surely share their share their shareholder value with me.

Take a look at my dividend paying portfolio:

Company Yield
Bank of America (BAC) 4.51%
Citibank (C) 4.39%
Wachovia Bank (WB) 4.15%
Altria (MO) 4.18%

Comments

2 Comments so far

  1. Loans and Cigarettes – Both Turning Kids into Addicts : Money And Investing on March 21, 2007 5:50 pm

    [...] x I happen to invest in both loan and cigarette producing companies. You probably have seen my cash-cow portfolio. One thing that both banks and Altria/Phillip Morris (MO) have in common is that they make addicts of very young people: before they even have an income to buy their products. [...]

  2. Altria (MO) - HOLD (Really holding on to my 800 shares) : Money And Investing on September 21, 2007 8:07 am

    [...] 2007 Q1 Dividend Stocks [...]

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