I am a firm believer that asset allocation plays a significant part in a portfolio's long-term results. Recently, I received a question asking if you could have a diversified portfolio of dividend stocks. It is an interesting question that deserves further examination.As for my portfolio, I consider asset allocation only when looking at my holdings in total. It would be much too difficult to maintain a good allocation within individual portfolios (income, growth, 401(k), Roth IRA, etc.), while trying to maintain my overall allocation. However, an investor could build a degree of allocation into a portfolio of dividend income securities. Consider the following:
Business Services Sector
- Automatic Data Processing Inc. (ADP)
Yield: 3.33% | Style: Large Growth | Analysis - C H Robinson Worldwide Inc. (CHRW)
Yield: 1.86% | Style: Large Growth - Expeditors International of Washington Inc. (EXPD)
Yield: 1.16% | Style: Mid Growth
Consumer Goods Sector
- Clorox Company (CLX)
Yield: 3.23% | Style: Mid Core - Coca-Cola Company (KO)
Yield: 3.04% | Style: Large Growth | Analysis - Procter & Gamble Company (PG)
Yield: 2.85% | Style: Large Core | Analysis
Consumer Services Sector
- Genuine Parts Company (GPC)
Yield: 4.19% | Style: Mid Value | Analysis - Sysco Corporation (SYY)
Yield: 3.56% | Style: Large Core | Analysis - McDonald's Corporation (MCD)
Yield: 3.22% | Style: Large Core | Analysis
Energy Sector
- BP Plc ADR (BP)
Yield: 6.15% | Style: Large Value - Chevron Corporation (CVX)
Yield: 3.75% | Style: Large Value - ExxonMobil Corporation (XOM)
Yield: 2.56% | Style: Large Value
Financial Services Sector
- Harleysville Group Inc. (HGIC)
Yield: 3.90% | Style: Small Value | Analysis - Chubb Corporation (CB)
Yield: 2.85% | Style: Large Value | Analysis - Aflac Inc. (AFL)
Yield: 2.38% | Style: Large Core | Analysis
Hardware Sector
- Diebold Incorporated (DBD)
Yield: 3.67% | Style: Small Value - Linear Technology (LLTC)
Yield: 3.23% | Style: Mid Core - Raven Industries Inc. (RAVN)
Yield: 1.90% | Style: Small Growth | Analysis
Health Care Sector
- Meridian Bioscience Inc. (VIVO)
Yield: 3.27% | Style: Small Growth - Johnson & Johnson (JNJ)
Yield: 3.08% | Style: Large Core | Analysis - Cardinal Health Inc. (CAH)
Yield: 2.10% | Style: Large Core | Analysis
Industrial Materials Sector
- Nucor Corp. (NUE)
Yield: 3.40% | Style: Large Core | Analysis - Emerson Electric Co. (EMR)
Yield: 2.90% | Style: Large Core | Analysis - 3M Company (MMM)
Yield: 2.58% | Style: Large Core
Media Sector
- McGraw-Hill Companies Inc. (MHP)
Yield: 2.63% | Style: Large Core
Pharmaceuticals Sector
- Eli Lilly & Company (LLY)
Yield: 5.77% | Style: Large Value - Abbott Laboratories (ABT)
Yield: 2.97% | Style: Large Growth | Analysis
Real Estate Sector
- Essex Property Trust (ESS)
Yield: 5.14% | Style: Mid Core - Corporate Office Properties Trust Inc. (OFC)
Yield: 4.29% | Style: Mid Core - Federal Realty Investment Trust (FRT)
Yield: 4.06% | Style: Mid Core
Telecommunications Sector
- CenturyLink Inc. (CTL)
Yield: 8.10% | Style: Large Value - AT&T Inc. (T)
Yield: 6.54% | Style: Large Value | Analysis
Utilities Sector
- Integrys Energy Group Inc. (TEG)
Yield: 6.61% | Style: Mid Value - Consolidated Edison Company (ED)
Yield: 5.59% | Style: Large Value - MGE Energy Inc. (MGEE)
Yield: 4.45% | Style: Small Core
Bonds
- Vanguard Short-Term Bond ETF (BSV)
Yield: 2.74% | Style: Short-Term Bond - Vanguard Intermediate-Term Bond ETF (BIV)
Yield: 4.32% | Style: Intermediate-Term Bond - Vanguard Long-Term Bond ETF (BLV)
Yield: 5.16% | Style: Long-Term Bond
Full Disclosure: Long ABT, ADP, AFL, BIV, BLV, BP, CLX, CTL, CVX, ED, EMR, GPC, HGIC, JNJ, KO, LLY, MCD, MMM, NUE, PG, SYY, T, TEG. See a list of all my income holdings here.
(Photo Credit)
Tags: [ABT] [ADP] [AFL] [BIV] [BLV] [BP] [BSV] [CAH] [CB] [CHRW] [CLX] [CTL] [CVX] [DBD] [ED] [EMR] [ESS] [FRT] [GPC] [HGIC] [JNJ] [KO] [LLTC] [LLY] [MCD] [MGEE] [MHP] [MMM] [NUE] [OFC] [PG] [RAVN] [SYY] [T] [TEG] [VIVO] [WXPD] [XOM]
