This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Start Your Own Dividend Fund and Beat the S&P 500

Here's the full Dividend Stars Portfolio, which offers a dividend yield of 2.77%

Mattel (MAT), dividend yield 3.20%
Pepsi (PEP), dividend yield 3.20%
Exxon Mobil (XOM), dividend yield 2.4%
Novartis (NVS), dividend yield 3.5%
Target (TGT), dividend yield 2.3%
Norfolk Southern (NSC), dividend yield 2.30%
Chubb Corp (CB), dividend yield 2.30%
Microsoft (MSFT), dividend yield 2.90%
Intel (INTC), dividend yield 3.4%
Deere (DE), dividend yield 2.20%
McGraw Hill (MHP), dividend yield 2.3%
Honeywell (HON), dividend yield 2.7%
Procter & Gamble (PG), dividend yield 3.3%

I will be providing further commentary on these companies over the next several weeks, along with commentary on performance and company updates. Today will mark the official "buy"/start date of this portfolio.

To see the 13 stocks in action, you can check out the Dividend Stars Portfolio on Stockpickr.

Here are the criteria for assembling the stocks in the Dividend Select screen:

¿ Dividend yield for the stock must be greater than that of the S&P 500.

¿ Stock must have a "buy" recommendation, based on ratings from TheStreet Ratings.

¿ Financial strength: According to our model, stock must have moderate financial strength and the ability to meet overall debt requirements.

¿ Return on capital: seeking companies with above-average returns over time.

¿ Dividend payout ratio is less than 60%. This will eliminate REITs and MLPs, which are required to pay out a majority of their earnings, and will look for companies that have the capability to invest in the business or new acquisitions.

If you have any questions, comments or suggestions, feel free to message me on Twitter at @bostoncfa

To get more stories like this one, sign-up for TheStreet's free Dividend & Income newsletter. Also, check out our Monthly Dividend Portfolio, which yields 2.71%.


Equity research manager Chris Stuart, CFA, joined TheStreet Ratings after working as a senior investment analyst with Merrill Lynch covering small-cap equity and alternative investment strategies. Prior to that, Stuart worked for One Beacon Insurance as an actuarial analyst and at H&R Block as a financial adviser. Stuart earned his bachelor's degree in finance from the University of Massachusetts, Amherst. He holds a Chartered Financial Analyst (CFA) designation and is a member of the Boston Security Analysts Society (BSAS) and the CFA Institute.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
INTC $30.28 0.00%
MAT $31.09 0.00%
MSFT $49.87 0.00%
PG $80.12 0.00%
PEP $102.96 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs