3 dividend stocks for diversified retirement portfolio
Here are some steady payers with low prices in different industries.
By Marc Bastow
Building a nest egg takes time, and part of its care and feeding is the oldest line in the investment book: Don't put all your eggs in one basket.
Sound advice now and for the future. Finding stocks that have paid dividends virtually forever like Johnson & Johnson (JNJ) and Exxon Mobil (XOM) is great, but after the most recent stock market run-up, investors are a little leery of some of the sky-high prices these champions want for your share of wallet.
How about if we expand our vision out to some strong dividend players, each in different market segments, none over $40 per share and all with solid dividend yields that well exceed the boredom of Treasuries?
Putting your money to work with these players will provide long-term dividend benefits at what might be considered certainly reasonable prices, if not bargains.
But it actually gets even better because AT&T has also hooked into the success of Amazon's (AMZN) Kindle Fire tablet through its 4G LTE wireless service, which is bundled into some of the tablets. It's also available for Apple's iPad.
All of which is a way to say that AT&T is right in the middle of the wireless and mobile revolution, playing on all sides of the street with all the major players.
InvestorPlace Chief Technical Analyst Sam Collins has taken notice and is a big fan of AT&T. A recent downturn in the stock makes it available at less than $40 per share. What do you get for your money? Well how about 44 cents per share quarterly and a nearly 5% dividend yield!
KO's recent 2-for-1 split gave anyone who's missed a chance to get in at a fair price of under $40 per share (and yes, 20 times earnings for these guys is fair) and a fresh chance at a 25 cents per share quarterly dividend.
KO has paid a dividend since 1893 and has the world's largest distribution system, with consumers in nearly 200 countries guzzling Coca-Cola's products at a rate of more than 1 billion servings each day. Don't expect that dividend history to change.
I'm getting more and more pleased with General Electric (GE), which I bought earlier this year on a hunch that has panned out fairly well to date. The company is now enjoying the benefits of an upstream dividend from a leaner, meaner GE Capital group, and is able to pass that cash along to investors since GE has gotten out from under the TARP umbrella.
The company also just opened up a relationship with Brazil-based Petrobras to manufacture wellheads, and continued bumps to its 17 cents per share dividend, which currently yields 3%, look likely. All for a price under $25 per share today.
That's not all, though. To fully diversify your dividend-happy portfolio, check out the rest of our picks here.
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing he was long AAPL, XOM, JNJ, MSFT, GE, and INTC.
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With the universe of this category in its seasonal sweet spot, these picks have tailwinds propelling them into the new year.
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