Buy Total (TOT)
I’m sure this one is going to be popular. (Yeah, right.)
Today, May 28, I’m adding Total (TOT) to the Jubak Dividend Income portfolio.
That’s right a European (gasp) oil (shudder) stock.
Total’s shares have dropped from $65 at the beginning of 2010 to $45 now. That’s driven the yield up to 6.5%, considerably above the yields for U.S.-based oil companies such as Chevron (CVX) at 3.8%.
Sell du Pont (DD)
I’m selling E.I. du Pont (DD) out of the Jubak Dividend Income Portfolio today, May 28, for the same reason that I just sold Rayonier (RYN). The stock has held up so well that the 4.5% yield doesn’t compare favorably to the higher yields offered by stocks that have been beaten up in the recent correction.
Buy Banco Santander (STD)
I don’t know when the euro debt crisis will be over or when European stocks, particularly European bank stocks, will stop sinking like stones. Certainly investors aren’t out of the woods yet: Fitch Ratings downgraded Spain to AA today (finally), for example.
But I do know that with a yield of 9.5% today, May 28, Banco Santander (STD) is paying me quite handsomely to wait.
Whenever you see a yield this high, you know that the market thinks there’s a lot of risk in a stock. The Spanish economy is a mess and the government’s efforts at cutting its budget deficit haven’t convinced anyone that the country is serious about fixing its problems.
Sell Rayonier (RYN)
I’m selling Rayonier (RYN) out of the Jubak Dividend Income Portfolio today. Nothing wrong with the stock—when the real estate market does finally turn, this timber and real estate REIT will do quite well.
But that’s part of the problem. The stock has held up so well that the 4.43% yield doesn’t compare favorably to the higher yields offered by stocks that have been beaten up in the recent correction.
The selloff has created big bargains in dividend stocks–I’m adding two to my income portfolio
Once upon a time, I worked in an office beneath a sign that read: “We’re a non-profit company…but we didn’t plan it that way.”
I feel a similar emotion as I write today about all the wonderful buys this market correction has created for dividend income investors.
I’m a dividend income bargain hunter…but I didn’t plan it that way.
Nonetheless and despite my chagrin, I think the bargains in this market are too amazing to pass up. The 12% drop (as of May 25) in the Standard & Poor’s 500 Stock Index from the April 23 high pushed up yields to the point that some stocks I never thought I’d ever put in a dividend income are begging to join the Jubak Dividend Income portfolio http://jubakpicks.com/jubak-dividend-income-portfolio )
