21 Dividend Stock that pay 5% Annually and Have Grown Over 50% in Last 11 Years

Imagine owning an ETF that pays a 5% dividend each year, has grown by more than 50% over the last 11 years and is 100% invested in S&P 500 stocks? Below is a list of 21 S&P 500 stocks that all currently pay a dividend over 5% and as a group are up by 66% over the 11 years. This is not a perfectly balanced and diversified portfolio of stocks and I am not recommending anyone go out and buy these stocks. However, if you owned the SPY (SPDR S&P500) over the last 10 years, you are flat and have basically zero return. Even most bank savings accounts, CD's and Treasuries have done better over the last 10 years than the SPY. I am a big believer in the Sharpe Ratio that basically says, "With increased risk you must expect greater returns!" The SPY has great risk in a market downturn, look only to 2008 for proof. Virtually all stocks and sectors have great risk in a big market downturn, so at least get some dividend money. If these 21 stocks trade flat over the next 10 years, your return is still over 50%. I am all for people building their own portfolio of stocks and having fun with them, even if it does not represent all of your money. Sure, give 90% of your money to a professional manager if you are not experienced, but take 10% and build a fun portfolio of stocks that you actively watch. You decide when to sell, when to replace etc ... If one goes bad, trade it out and replace it with one you like. Maybe even put one or two in that are crazy, like Priceline (PCLN) and Netflix (NFLX). PCLN is up 1,900% over the last five years and NFLX is up 800% over the same time period. The stocks in my list below were chosen simply because they have dividends over 5% and as a group have greatly outperformed the same index they are all in. Some have actually lost money over the last 11 years and some are up big. Some I believe have very safe dividends and others may be at more risk. I will actually be speaking about this topic on my show this weekend. (Click to enlarge)... Read more