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.