That portfolio is 1) not diversified, 2) composed of pipeline companies (KMI and ENB), UGI is a gas utility, MO is Altria also known for its cigarettes in a declining market of users, O is a mortgage-bond REIT and VZ is a telecom company. 3) you will be subject to interest rate risk, company specific risk, market risk.A relative recently moved into senior assisted living facility. The following six dividend payers (KMI, UGI, Mo, ENB, O, and Vz) were suggested to provide the necessary annual income since she has enough savings that if invested at 6% the dividends would be sufficient. What are the negatives in doing something like this? Comments appreciated.
It wasn’t too long ago that VZ was 29, not the 40 it currently is, KMI ran into problems and the stock price was halved, Altria was sitting in the low 40’s. O’s yield is predicated on what happens with interest rates.
Do you require a 6% yield in a world of 3-5% (with risk)?
Statistics: Posted by Grt2bOutdoors — Sat Sep 14, 2024 10:35 am