Rebuilding our Dividend Stock Portfolio

We recently posted how we needed to liquidate our dividend Portfolio. Even though we did not want to sell all of our dividend stocks, we had to.  We bought some of them at a very good price, and rebuilding everything at today’s higher prices would be more expensive.  However, we have a couple of groups we were willing to repurchase. Below, we will discuss the 1st steps in rebuilding our dividend stock portfolio.

Rebuilding
Rebuilding

Monthly Dividend Stocks

We wanted to get back some of our monthly dividend payers.  They would add 12 dividend payments per year per stock.  Since we like seeing dividend payments coming into our account, these would add a happy psychological effect for us to see more dividend payments coming in. We like seeing the positive effect of having cash flow coming in more quickly.

STAG: STAG Industrial (STAG) is a REIT that invest in industrial buildings that are single tenant.  They currently pay a 5.5% dividend yield.  We bought 45 shares.

APLE: Apple Hospitality (APLE) is a REIT that owns lodging holdings, such as hotels.  They currently have a 5.9% dividend yield.  We added 56 shares.


O: Realty Income (O) is a REIT that owns commercial real estate.  They currently have a 4.1% dividend yield.  We purchased 18 shares.

EPR: EPR Properties (EPR) is another REIT that owns entertainment properties, such as movie theaters.  They are sporting a 4.8% dividend yield.  We will have 14 shares now.

High Yield Dividend Stocks

We also wanted to rebuild with our favorite high dividend yielding stocks.  They would increase our portfolio yield and add a bunch of cash flow to our portfolio.  While it is good to not necessarily chase high yield stocks, these were our favorite from our previous list.

NRZ: New Residential Investment (NRZ) is an mREIT that owns mortgage back securities.  They have a very large yield of 11.2% yield.  Purchased 70 Shares.

SNH: Senior Housing Properties (SNH) is a REIT with senior housing properties.  They replace our old holding of HCP (HCP), because the company was having a spin off.  Bought 54 shares.

GME: GameStop (GME) run the video game stores. They are playing with a 6.3% yield.  Bought 44 shares.

VZ: Verizon (VZ) run the cell phone towers and allows your cell phone to play games and make calls most places.  We replaced AT&T (T) with this pick.  They have a 5.2% dividend Yield.  Bought 21 shares.

The last 2 stocks

While these 2 stocks do have a higher than average yield, we put them down in this separate category.

LVS: Las Vegas Sands (LVS) runs resorts and gambling.  They have a 4.9% dividend yield.  Bought 17 shares.

IP: International Paper (IP) operates as a packaging and paper company.  They are currently producing a 3.5% yield.  Bought 21 shares.

Diversification

After writing the above piece, I realize that I need to add a bit more diversification.  We own a lot of REITs.  We will need to add some more non-REIT companies.  In addition, we will need to add some more Dividend Aristocrats.  We do like the steady increasing yields that Dividend Aristocrats provide.  We are looking for good buying entry points.

Overall

You can find out How I Liquidated a Dividend Stock Portfolio here.  This list of stocks is currently providing us a dividend yield of 6.0%.  That is a fairly high yield to start off with. In addition, we will get 72 dividend payments per year.  That means we will get about 1.4 dividend payments per week.  I project a forward payment of $642 at the current dividend rate.  That will provide us with a lot of positive feedback frequently.  Until we add more diversification, this is higher risk portfolio than we had.  But we feel like this is a good place to start.

We are glad we are rebuilding our dividend stock portfolio.  Do you agree with our purchases to rebuild our dividend stock portfolio? Have any dividend stocks you think we should add to the mix to rebuild our portfolio?  Please feel free to share in the comment section below.

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Disclosure: We currently own STAG, APLE, O, EPR, NRZ, SNH, GME, VZ, LVS, and IP. We do not own or plan to buy HCP or T in the next week.

 

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2 thoughts on “Rebuilding our Dividend Stock Portfolio

  1. Good start so far. I like the monthly dividend REITs for constant dividends coming in. As you said, It’s a little risky so far until it gets more diversified. And remember all those REITs dividends get taxed at a higher rate if they are in a taxable account. But all in all, great start and I look forward to seeing you continue to rebuild.

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