A Portfolio That Delivers

A portfolio is constructed from many different stocks, and I have a theme that may attract your interest. Dividends are a large part to investing, even though they may seem to be insignificant in the short run. When dividends are reinvested, they create large gains over time with the help of compound interest. Built on this theme of dividends, I have come up with a diversified portfolio of stocks that are not only safe in paying their dividend, but are also fairly non volatile. Powershares Financial Preferred (NYSE: PGF): I explained the properties and benefits of this ETF here. Altria Group (NYSE: MO) is a company that sells cigarettes and other tobacco products in the United States. They also happen to be the largest company in the cigarette business. Altria gives you a nice yield of 6.9%, which is way above what Treasuries can give you right now. The company may also benefit if the dollar can continue to hold its own, or even rise in the future. On the downside, MO is slowly losing customers due to its deadly product, and can be hurt by the government or lawsuits. If you fear the US government, then you may want to consider Phillip Morris International (NYSE: PM). British Petroleum (NYSE: BP) ADR is an interesting candidate for this dividend portfolio, because you don’t always think of major oil companies as big dividend providers. Currently, BP is providing investors with a 6.1% yield. Once again this gives you more than what Treasuries can give you, plus the upside in stock appreciation when the world economy recovers. On the downside, BP does move with the price of oil, which tends to be volatile. Bristol Myers (NYSE: BMY) is one of the larger major pharmaceutical companies that sells its products around the world. BMY gives its investors 5.4%, and benefits from a weak dollar. Recently, BMY spun off its Mead Johnson (NYSE: MJN) unit to create a pure pharmaceutical company. One thing to watch for would be to see what the current administration ends up doing with healthcare legislation, as that could hurt BMY. The last stock in my portfolio is Verizon Wireless (NYSE: VZ). Verizon is the largest communications company that generously gives its investor a 6.6% yield. Verizon is within 10% of its 52 week low and looks attractive as an investment. Recently, Verizon and AT&T (NYSE: T) have introduced a price war that has knocked both stocks lower. Investors will have to watch to see how much more downside could be possible if the price war were to continue. Overall, if you were to invest 20% in each of the investments mentioned above your portfolio would yield 6.7%. This yield in the long run could easily help your portfolio grow, as well as nearly double your portfolio within 10 years with dividend reinvestments based on the rule of 72. Each stock that was presented above is involved with different sectors of the economy. This on most bases gives a portfolio diversification, but because each stock is a high dividend yielder they can also tend to trade in similar patterns during certain situations.