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    kanight's Avatar
    kanight Posts: 2, Reputation: 1
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    #1

    Feb 17, 2011, 08:11 PM
    Many dividends or all in one
    If I want to make an income from dividend stocks do I need to buy 200 shares of Ko and 200 of nke and 200 of intc and 200 of Mcd or would it be more profitable to buy it all in one stock like Mcd?
    ballengerb1's Avatar
    ballengerb1 Posts: 27,378, Reputation: 2280
    Home Repair & Remodeling Expert
    		  
    #2

    Feb 17, 2011, 08:21 PM

    Counsult a broker or investment counselor, they will likely say to not have all your eggs in one basket
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #3

    Feb 22, 2011, 11:20 AM

    Using current prices and dividends, the dividend yield on each of these stocks is:

    MCD: 3.2%
    INTC: 3.3%
    KO:2.7%
    NKE: 1.4%

    So if you really wanted to maximimze dividend income you would concentrate your investment in INTC. However, as ballengerb1 said, it is important to diversify your portfolio to reduce risk. You should also be thinking about total return - dividends plus capital appreciation, and not just dividends. Given that each of these companies are leaders in their markets I would consider splitting my investment across all four.
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