Yesterday I was deciding between a few stocks to add to my Income Portfolio including VOD, the new KRFT and OHI. I ultimately added 100 shares of Vodafone (VOD) @ 26.969/share. Currently my income portfolio has 100 shares each of VOD, TSM, EXC, and APL. I have a covered call I sold on 100 shares of TSM earlier in the year that will likely get called away in January leaving me with just 3 stocks.
I like Vodafone to compliment my Verizon (VZ) shares that I own in my DG portfolio. VOD has a current yield of about 5.5 % according to Etrade and has exposure to emerging markets. They also received a special payment from Verizon Wireless last year as they own 45% of the company. The yield doesn’t take into consideration these special dividends that may or may not continue. This purchase should provide about $150 in additional annual income.
I don’t currently have my Income portfolio posted on my blog but that could change as it grows. I don’t want it larger than 20% of my DG portfolio.