It is nearly 2017 and around this time of the year you can find a bunch of articles that all try to find out what will be the winning investment strategy for the new year. I also came across a lot of these that specifically deal with dividend paying companies. I always read these with great interest as all individual stocks in my Dirty Thirty Portfolio fall in this category. From this occasion I invite you for a game that will last throughout the year: The Battle of Dividend Stocks 2017!
The inspiration came from the following article: Top 10 Dividend Stocks You Need to Buy Now to Prepare for 2017. It has been posted on TheStreet by Ben Reynolds and it lists 10 companies he recommends to buy for the new year.
As I read through the article, I have realized one thing: All the dividend stocks on the lists look like great companies and looking a bit closer to them I would also purchase at least 7 of them without too much worry. Nevertheless none of them are included in my Dirty Thirty Portfolio!
Should I review my portfolio and make changes to it? No way! I have purchased those stocks because I have long term confidence in those companies. At the same time I found the other top 10 list also full of potentially good buys.
Nobody can predict the future so I don’t think it is fair to say that this or that list is better. So let’s make this as a game instead! And the good news is: you can join too!
The Battle of the Dividend Stocks have some very simple rules:
- You have a hypothetical cash pool of USD 10,000 which should be equally distributed among 10 companies that are listed in a major US stock exchange
- The nominated companies should all pay dividends.
- The shares are purchased based on the opening price of the first trading day of 2017
- Fraction of shares can be purchased (i.e. if the opening price is USD 23, then 43.48 shares will be purchased
- Dividends paid out during the year will be included in the result, even if the ex dividend date falls in 2016
- No modifications can be made to the starting portfolio
- The progress is monitored on a monthly basis and the results will be announced based on the closing price of the last trading day of the year.
- For myself there is an extra rule: the 10 stocks I chose must be the member of the Dirty Thirty Portfolio
If you want to nominate your own top 10 dividend stocks 2017 game, you can do it by the end of 1st January. In case of many nominations I will accept the first 5 applicants, so hurry! 🙂
What seems to be obvious is that Ben Reynolds’s selection is heavily loaded with medical and pharma companies. In my top 10 you can only find Sanofi, which is still my favorite stock of the industry. Also he didn’t select any stock from the financial sector, while on my side Ameriprise is represented. I also seem to be more optimistic on the rebound of the energy sector.
Let’s see which list of companies perform better in 2017!
As mentioned before I would be more than happy if some of you would also nominate his/her top 10 dividend stocks for this game! What do you think of these two lists so far?
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Disclaimer: This post or any other information on the site is not intended to be and does not constitute financial advice or any other advice. I am solely sharing my idea, plan and progress on financial independence and early retirement.