Chasing Value: 2010 Dividends for Ten Stock Picks

Posted Dec 31st 2009 4:30PM by Sheldon Liber
Filed under: Forecasts, Competitive Strategy, General Electric (GE), Home Depot (HD), Berkshire Hathaway (BRK.A), Getting Started, Archer-Daniels-Midland (ADM), Options, Bargain Stocks, Chasing Value™, Raytheon Company (RTN), E*TRADE (ETFC), EZCORP (EZPW), Williams Companies (WMB), Brasil Telecom (BTM) , Grubb and Ellis Co (GBE)

During my tenure at BloggingStocks I have expressed my opinion often about the contribution that dividends make to your overall return. Most shrewd investors, and especially "my pal Warren," know this and understand why I re-emphasize the point when I make my annual selections.

By now I hope you have had a chance to peruse my picks for 2010. If not the links below will give you another opportunity.

The yields are from the closing prices on Monday December 28, 2009.

#1 Berkshire Hathaway -- Yield 0
#2 Grubb & Ellis -- Yield 0
#3 EZCORP -- Yield 0
#4 Home Depot -- Yield 3.09%
#5 Williams Company -- Yield 2.06%
#6 General Electric -- Yield 3.28%
#7 Archer Daniels Midland -- Yield 1.83%
#8 Raytheon Company -- Yield 2.37%
#9 Brasil Telecom -- Yield 7.81%
#10 E-Trade 'Naked Put' -- Yield 4% (assumes cash invested in a broad bond market index fund)

The average dividend yield for the ten picks is 2.43%. At each quarterly review the relative portion will be added to the results. The Standard & Poor's 500 Index, for comparison, has an average yield of 1.94%. This gives my picks a 0.49% advantage from day one.

Disclosure: Among the positions discussed in this post, I own shares of BRK.B, GBE, EZPW, WMB, GE, RTN and ETFC options.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money.

Tags: 2010, ADM, archer daniels midland, ArcherDanielsMidland, berkshire hathaway, BerkshireHathaway, brasil telecom, BrasilTelecom, brk.a, brk.b, BTM, chasing value, ChasingValue, dividends, e-trade, ETFC, ezcorp, ezpw, featured, GBE, GE, general electric, GeneralElectric, grubb and ellis, GrubbAndEllis, HD, home depot, HomeDepot, raytheon, RTN, sheldon liber, SheldonLiber, value investing, value stocks, ValueInvesting, ValueStocks, williams co, WilliamsCo, WMB

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Reader Comments (Page 1 of 1)

3-09-2010 @ 9:44PM

bpb said...

doesn't look like a good return to me a good return to me considering PDLI is going to $.50 on the 15th of this month and I i bought in at $6.50 making it over 7.5% and anther $.50 already declared for the fall. Sure yield is important but it will take along time to build up a portfolio at 4% http://buyingstocksforbeginners.webs.com/