First Segment

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And you'll need some oil exposure, of course...

And I don't think the high price of crude will go away anytime soon...  Remember, we're using a $125 target in Cramerica...  Here I like Permian Basin Royalty Trust (PBT)...

PBT... a U.S. energy trust... 50/50 oil and natural gas... 

I believe this is the year of natural gas.  I think you want that kind of exposure.   PBT has a mammoth 9.8% yield and, because it's an energy trust, you will have to pay regular taxes on your dividends... not the more favorable 15% tax rate...

The easy way around this problem is to make this dividend portfolio your IRA or your 401k... Then you won't have to pay any taxes on the dividends, until you withdraw your money when you retire... letting these huge yields compound over and over and over again every year...  

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I also think you want an entertainment stock in here...  something that's not too economically sensitive...

For this slot, remember, I brought on Vince McMahon's wife (CEO)... Yeah, World Wrestling Entertainment (WWE)...

Don't be a snob!...  Don't miss this one...  I think it's a steal with a 7.8% yield.   Plus, the company's been making huge inroads in Eastern Europe... in Asia...  Hey, they love pro wrestling over there...  A quarter of their sales come from abroad...

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I also want you to have an electric utility in here too...

I need relatively safe, I need reliable, I need boring...  Now, of course, we can go with my stock of Penn State... We're going to go with CPFL Energia S.A. (CPL)...  This is large electric utility in Brazil...   Let's just say it's more prudent than the United States...

Unlike its counterparts in the U.S.A., it is still growing...  You get a 5.9% yield, along with dividend increases, as I expect CPL to continue to take market share, in Brazil's growing electricity market.

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Finally... let's round out the portfolio.   I think you want a healthcare name...  the type of secular-growth stock that we would normally go to when the economy slows down, so that's why I like HCP, Inc. (HCP), a healthcare real estate investment trust (i.e., REIT) that owns hospitals, life science labs, and skilled nursing facilities. 

A 5.2% yield here.  I like this one more than the other healthcare REITs, because of the lab exposure... that's biotech.  And because it's less exposed to Medicaid... something that I worry about, because the federal government can be fickle...

HCP yields 5.2%, okay...   And, because it's a REIT, its dividend will too be taxed at a normal rate, so another one that's good for your 401k or IRA. 

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There you go...

That's your diversified dividend portfolio;  five stocks in five different sectors, with an average yield of 6.6%.  The S&P 500 yields 2.2%...  We're talking about three times the yield of the S&P.   I think this portfolio will help you outperform the average, in a time when unemployment's going higher, the economy's slowing down, and interest rates are low...

After taxes, you still have a 4.7% yield.   But I'd recommend putting these stocks in a 401k or an IRA, so the dividends can compound over time, without the tax man taking his cut...

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The Bottom Line!:      Right now, I don't think there's anything better than a stock with a high yield...  Now you've got five of them... five diversified names...  Dow Chemical Co. (DOW), Permian Basin Royalty Trust (PBT), World Wrestling Entertainment (WWE),
CPFL Energia S.A. (CPL), and HCP, Inc. (HCP).   Hallelujah... you've got a worry-less, high-dividend portfolio.

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