There is a stock picking competition between several US and Canadian bloggers to pick the best four stocks for 2009, which I was invited to participate in. The rules do not allow trading or selling of these picks, and requires a quarterly review of how the stocks selected have performed.
The stocks that I selected are representative of four high-yield sectors, where dividend investors typically shop for current income. Furthermore despite their high current yields, the dividend payments for the four stocks below seem sustainable.
Realty Income (O) a commercial retail real estate company yielding 7.30% . Realty Income is a dividend achiever which pays dividends monthly to its shareholders. If the credit market remains frozen in 2009 Realty Income could suffer if its vacancies increase or it can’t find more funds to keep expanding. If the financial situation normalizes however, real estate stocks in general will benefit from low interest rates.
Kinder Morgan Energy Partners (KMP) is a pipeline transportation and energy storage company in North America yielding 9%. This master limited partnership is a member of the dividend achievers index. The low energy prices could stimulate demand in 2009, which could positively affect pipeline businesses like Kinder Morgan.
Consolidated Edison (ED) provides electric, gas, and steam utility services in the United States yielding 6.10%. Even during tough economic conditions people keep paying their electric bill and keep heating their homes. Con Edison is a member of the dividend aristocrats index.
Phillip Morris International (PM) is an international tobacco company yielding 5.10%. The international tobacco market is a growth story, and unlike the US market is not facing as many issues in the short term as Altria (MO). Even during a recession, people continue smoking, as this product is very difficult to stop using.
With an average yield of 6.9% and the possibility for long-term dividend growth, these stocks should weather well any market conditions in 2009. In order to generate dividend income for the long run however, a more diversified portfolio consisting of at least 30 stocks should be constructed in order to withstand market forces. Check out the Best Dividend Stock for the Long Run list, which is a good addition to today's post.
Disclaimer: At the time of this writing I owned shares of O, KMR, PM and ED.
Trade stocks for free through Zecco.com, the Free Trading Community. www.zecco.com
The other bloggers participating in the contest include:
Where Does My money Go
Four Pillars
ZachStocks
The Wild Investor
The Financial Blogger
Intelligent Speculator
My Trader's Journal
Million Dollar Journey
Relevant Articles:
- Trade stocks for free through Zecco.com, the Free Trading Community. www.zecco.com
- Kinder Morgan Energy Partners (KMP) Dividend Analysis
- Consolidated Edison (ED) Dividend Analysis
- Realty Income (O) Dividend Analisys
- My Dividend Growth Plan - Diversification
- Best Dividends Stocks for the Long Run
Popular Posts
-
The past month has been difficult for many investors. Stocks are down by 30% from their all time highs, reached just 1 month ago. It is duri...
-
Last year marked a record in earnings and dividends for US companies. The S&P 500 index ended up distributing a record number of dividen...
-
The S&P Dividend Aristocrats index tracks companies in the S&P 500 that have increased dividends every year for at least 25 years ...
-
I wanted to share an insightful commentary from a friend of the blog, Joe Ferris, who is a Registered Investment Advisor at Summer Fields In...
-
“In the short run, the market is a voting machine but in the long run, it is a weighing machine.” ― Benjamin Graham The price of securit...
-
It looks like the Corona Virus (Covid -19 ) is spreading rapidly throughout the world, with Northern Italy on lockdown, and the cases in the...
-
As part of my monitoring process, I review the list of dividend increases every week. With the current Covid-19 crisis , companies are cons...
-
Last week was a crazy week in the US Stock market, as the number of Covid-19 cases in the country surged, and so did the number of deaths. I...
-
As part of my monitoring process, I review the list of dividend increases every week. This is helpful in monitoring dividend increases for ...
-
I originally wrote this article in July 2008. At the time, S&P 500 had just gone into bear market territory from its highs just 9 months...
