Building Solid Dividend Returns

I have created a list of stocks here, that provide strong dividends and are performing decently well, meaning they are curretly profitable and only have a mild amount of risk or caught my eye for one reason or another. With that said, perhaps I don’t have enough money to buy every stock of interest or perhaps enough time to pay attention to all of their behavior in the stock market. For one reason or another a choice has to be made, but other than price and Dividends all else is equal.

Here I have creted two examples, in one example all of the stock is ranked simply by percentage. Then I set the quantity of shares to be the inverse order of rank in order to measure approximate scale of purchasing based on value and risk. The other example takes the shame share values and then ranks the stock based on the Div/value in order to scale the cost of each individual stock with the percent in returns, creating more balance between higher returns and higher cost per share.

The second in this case produced a higher percentage return while costing less in total. If these figured are reduced by a factor of ten it shows that with the first method $137 would get a return of $16 but with the second method $115 would be able to get a return of $14.

To really compare these methods we have to compare the ratio of costs to ratio of gains for each method. 137/115 = 1.191 , 16/14 = 1.142. Based on this, the gains are not as significant as the cost of achieving this. Making, at least in this case, the Div/Value method a better option if the attempt is to optimize cost while minimizing risk to the same degree.

With all that said the full list is a great idea list for stocks to think about if you are interested in maintaining a strong dividend return in your portfolio.

Selected Dividend Stocks ranked by percentage alone.
Selected stocks ranked by Dividend/Price.

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