Dividend stocks

[Cod Liver Oil]

Capitalists,

I am running a couple of non-taxable foundation accounts which need to give away 5% of assets pa..  90% of the funds are invested the same ideas as our taxable accounts but I would like to put 10%-20% in dividend oriented investments. If you have any solid yield ideas, I would love to hear them.  I am well aware that more money has been lost in the pursuit of yield than at the point of a gun so I may be slightly paranoid. Thank you!

Currently looking at PM, MMM, BNS.TO, Pernod, Remy , CLPR, DEO, Kering, TESB.BR, NEN.

Edited March 24 by Cod Liver Oil

[Gregmal]

3M

[Spekulatius]

PM,

XLE if there is a selloff

BTI, PBRA and VALE on the riskier side.

 

It‘s a bit tough now to justify dividend stocks, with interest rates where they are and fairly high valuations.

Edited March 23 by Spekulatius

[Dinar]

1 hour ago, Cod Liver Oil said:

Capitalists,

I am running a couple of non-taxable foundation accounts which need to give away 5% of assets pa..  90% of the funds are invested the same ideas as our taxable accounts but I would like to put 10%-20% in dividend oriented investments. If you have any solid yield ideas, I would love to hear them.  I am well aware that more money has been lost in the pursuit of yield than at the point of a gun so I may be slightly paranoid. Thank you!

Aena, Philip Morris International, Tel-aviv stock exchange, Ambev, Transdigm, Monarch Cement.  On the list, I do NOT own Aena and Ambev.

[formthirteen]

These are some of the dividend stocks I've traded in and out of. Still own BTI, AFL, MO, PM, FFH-PD. Wish I hadn't sold the others. I prefer to park excess cash in high-dividend yield companies. Love buying them during market panics.

 

For the adventurous:

QRTEP Dividend cut in half recently (stock doubled)

PARAP

 

For this board:

FFH-PD.TO

 

For royalties:

BSM

DMLP

 

Banks:

BANX

 

Tobacco:

BTI

MO

PM

 

For the patient:

AFL

 

For energy:

MPLX

EPD

[thepupil]

26 minutes ago, formthirteen said:

These are some of the dividend stocks I've traded in and out of. Still own BTI, AFL, MO, PM, FFH-PD. Wish I hadn't sold the others. I prefer to park excess cash in high-dividend yield companies. Love buying them during market panics.

 

For the adventurous:

QRTEP Dividend cut in half recently (stock doubled)

PARAP

 

For this board:

FFH-PD.TO

 

For royalties:

BSM

DMLP

 

Banks:

BANX

 

Tobacco:

BTI

MO

PM

 

For the patient:

AFL

 

For energy:

MPLX

EPD

He said non taxable, so I’d recommend against EPD to avoid UBTI

 

DMLP does not generate UBTI. BSM has in past but did not for me this year. 

[DooDiligence]

AFL has been a beautiful business. Started out selling supplemental cancer insurance and got a boost when they introduced policies to people who'd had an atomic bomb dropped on them (kind of a no brainer). Recently bought Argus Dental & Vision and is partnered with Trupanion. Back to the office is giving them more face to face sales opportunities. Shows strong cannibalistic tendencies. I never should've sold. FCF declining. Thanks for the reminder.

Edited March 23 by DooDiligence

[sleepydragon]

Hershey, CVX/HES, XOM

[ICUMD]

BNS.to

6.2% yield from a Canadian Charter bank, hard to pass up. Personally loaded up to the brim sub 60s.

[Dinar]

2 hours ago, Cod Liver Oil said:

Capitalists,

I am running a couple of non-taxable foundation accounts which need to give away 5% of assets pa..  90% of the funds are invested the same ideas as our taxable accounts but I would like to put 10%-20% in dividend oriented investments. If you have any solid yield ideas, I would love to hear them.  I am well aware that more money has been lost in the pursuit of yield than at the point of a gun so I may be slightly paranoid. Thank you!

Currently looking at PM, MMM, DEO, BNS.TO, ALX, CLPR, DEO, Kering, CK Asset, TESB.BR, NEN

I would avoid Kering (too much fashion risk and also luxury names, excluding Hermes, have taken a lot of price in the past several years) and also ALX - their retail condo will  probably go to the lender at 731 Lexington and not clear what will happen to the office building - Bloomberg lease expires in 2029.  Now at 160, it was a no-brainer, here at $213, different story.  

[cubsfan]

FMC - 4%, with plenty of upside on the common.

[Sweet]

What about one of these covered call ETFs such as XYLD?

 

It yields nearly 10% and has been in operation from 2013.

 

I’ve never personally owned one because I feel it’s a product I don’t fully understand and therefore I’m unable to assess the risk.  
 

Still, I am interested in these types of products.

[Castanza]

SCHD 

[Eldad]

WSO, MCD, HSY, EPD, SBUX

 

better off starting with a 2.5% steady divi grower IMO than reaching.

 

EPD is as solid as they come though. 

Edited March 26 by Eldad

[Ross812]

KMI

[Kizion]

SOLVAY - European chemical company - did a split earlier this year, where Solvay kept the established products and the innovative products shifted to a new company. Paying 10% dividend yield, with a track record of increasing dividends. 

Edited March 26 by Kizion

[KPO]

Pipelines like KMI, WMB and ENB are solid options. There’s a little lodging REIT called Sunstone that I came upon at the beginning of COVID that had a neutral cash position at the time and is still under levered with a yield of around 7% on their two preferred issues. In similar vein there’s always HST, which yields around 4%

[Red Lion]

OWL, ARES, BX. Perhaps not at these prices but they are good cap light dividend paying business models. 

[Saluki]

I have a small position in SFL, a shipping company founded by the guy who started Frontline. I'm up about 20% on it this year, but the dividend is still almost 8%. It's safer but with less upside than most shipping companies. They operate like Aercap (or ATCO before they went private) in that they don't do spot contracts, they buy ships when they have a customer who commits to a long-term contract. 

 

There isn't a post on COBF about them, and when I start a post on something it tanks, so I won't start one.  But they own a little of everything (containers, drybulk, VLCCs and product tankers).  I think the earnings and dividends will continue to grow because they are about to take delivery of a few more Ro-Ro ships and two product tankers under long term contracts.  They are dependent on debt so if rates stay high it may stunt growth in the future, but for the next couple of years it should grow when the new ships start earning.  Product tankers are getting great rates now because of the low order book and the shipping nonsense in the red sea.  And Ro-Ros are an oligopoly business, and whenever I've looked at the pure play Ro-Ro companies they are pricey, so this gets you some exposure to that which is specialized and not prone to new entrants like dry bulk. 

[SongDonkey.AI]

@SalukiRegarding SFL - as I understand this is a creation of John Fredreksen. I would be very careful investing in his enterprises. Equity or debt doesn’t matter. History is not on your side if market turn south.

[FCharlie]

I like Medtronic for dividends. You aren't reaching too hard for yield but you get over 3%. The stock isn't expensive, plus there's been 46 consecutive years of dividend increases 

[Saluki]

3 hours ago, SongDonkey.AI said:

@SalukiRegarding SFL - as I understand this is a creation of John Fredreksen. I would be very careful investing in his enterprises. Equity or debt doesn’t matter. History is not on your side if market turn south.

That's fair. Shipping is a terrible business and as SFL is probably the leper with the most fingers. Very long streak of paying steady or increasing dividends and long term contracts are a good buffer from the wild swings up and down of many shipping companies that are exposed to spot rates and use the volatility to make money off the "tourist" investors.

 

I don't plan to hold forever but as the new ships get delivered and more earnings come in it should be fine. Dividend is good but, if I had to pick a reason to Avoid it besides it being a shipping company it would be the price. Even with a growing dividend I always feel like a sucker if I pay more than book value for anything that floats or writes insurance policies.

 

I like to refer to shipping companies as "floaters" to remind myself that they are turds

[Cod Liver Oil]

Does it make sense to sell calls against the portfolio in the non-taxable foundation accounts as a way to increase yield?

[KPO]

7 hours ago, Cod Liver Oil said:

Does it make sense to sell calls against the portfolio in the non-taxable foundation accounts as a way to increase yield?

I do this in my Roth and traditional IRAs for stocks I perceive to be close to full value. Just wrote calls on SMG and some O&G yesterday. I’ve been doing this the last 15-16 years and have rarely been disappointed. 

[Cod Liver Oil]

I put 5% each in PM and MMM. Ill probably sell some calls against the growthier names and let the toxic stuff continue to outgas dividends.