Do it yourself Dividend ideas

I mentioned in my April recap that I recently bought a house.  The first thing that happens when you buy a house is that you will need to get things that you never needed in an apartment.  Captain Obvious right?   Things like lawnmowers, sprinklers, faucets, maybe paint and curtains.  I began to look at the various products and who made them.  It turns out there are large number of dividend payers who sell all manner of home care products.

My Grampa was a do it yourself kind of guy (At 75 he repainted the interior of his big house).  He told me that if you plan on owning a house that you need to be able to fix as much as possible.  Service calls are expensive and most non-critical issues (i.e. plumbing disaster), are not difficult to fix.

First of all, you need to buy from somewhere:

Home Depot (HD)

An obvious place to start.  HD sells pretty much anything you will need to fix/update your house. They have a friendly and knowledgeable staff. You can hire contractors and rent various pieces of equipment.
Dividend Streak: 5 years
Current Yield: 2.42
10 Year DGR: 19.2

Lowe’s (LOW)

Another DIY mega store.  They sell pretty much the same things as HD.  To be honest, I am not sure what exactly the benefit of going to one over the other is.  I am looking for the lowest price and will go to wherever that may be.

Dividend Streak: 51
Current Yield: 1.58
10 Year DGR: 29.2

Walmart (WMT)

WMT has a surprising amount of home care/ renovation items.  They have more painting equipment than I thought they would and it was cheaper that HD or LOW.  If you are looking for cheap throw away painting equipment, then take a look here.
Dividend Streak: 41
Current Yield: 2.42
10 Year DGR: 18

Target (TGT)

I am not exactly the best person at putting things together in a way the matches.  I had some more knowledgeable friends take me to TGT to pick out some curtains.  TGT has the least selection of DIY items, but you can get any cleaning supplies and some basic furniture at a good price.  They have a lot of nice (i.e. cheap) fabrics for various purposes.
Dividend Streak: 46
Current Yield: 2.91
10 Year DGR: 19.8

Stanley Black and Decker (SWK)

They make of tools of all kinds.  I decided early that I didn’t want to deal with gas for any lawn equipment.  So, I picked up a Edger/Trimmer/Blower 20v battery combo pack from Amazon (lowest price, not anymore though).  I was a little worried about battery life/power, but these tools have plenty of power and the battery lasts longer than I need it.  They also sell drills and other tools that use the 20v battery, which is convenient.
Dividend Streak: 46
Current Yield: 2.32
10 Year DGR: 6.8

General Electric (GE)

One of the first steps towards reducing my energy bill will be to replace the most used bulbs with high efficiency ones.  GE makes a large variety of energy efficient bulbs.  Light bulbs are by no means there only products, but for the time being this is what I buy from them.
Dividend Streak: 4
Current Yield: 3.33
10 Year DGR: NA

Honeywell (HON)

Honeywell is not a dividend champion, but they have been paying dividends for a long time.  Another step in my energy efficient plans is to keep lights on only when I need them on.  That seems pretty obvious, but the porch light is one I forget to turn on and off.  I purchased a controller that replaces the porch light switch. It will turn my lights on automatically based on the longitude/latitude of where I live at dawn/dusk.  I haven’t put this in yet, wish me luck! Old houses have crappy wiring.
Dividend Streak: 3
Current Yield: 1.94
10 Year DGR: NA

Sherwin Williams (SHW)

Painting!  I had originally decided that painting the house wasn’t going to happen.  Once I got there and started to think about things and with the encouragement of others, I decided to paint.  SHW is a paint store and you are able to get anything color you want, wallpaper and other supplies.  Painting is not that hard and is an ideal DIY task.  I have heard but not confirmed) that painters can charge anywhere from 50-100 dollars per hour for labor.
Dividend Streak: 36
Current Yield: 1.1
10 Year DGR: 12.4

A good start

There you have it, a good place to start for DIY companies.  There are plenty of others and as I continue my home ownership adventure, I am sure will find many more!  Well, I hope I find more, considering how many projects I have rolling around my head…

Disclaimer: Long TGT, WMT

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6 Responses to Do it yourself Dividend ideas

  1. DivHut says:

    A smart list you compiled for a DIY dividend portfolio. My fav from the list as a long tern div investor are SHW, HON, GE, SWK. The other “retail” stocks you mention seem too fickle for me at this time.

    • ILG says:

      Yeah, I personally don’t like retail shops that focus too much on one product type or industry. If housing crashes again, people will be reluctant to buy items at either HD or LOW, but would still hit WMT or TGT.

  2. Good list. I own pg and I am looking for entry point on Walmart soon. I would stay away from target for now as they have lost a billion dollars expanding to Canada in one year. A new Walmart and Target opened near me and difference is night and day. Walmart is packed with customers and good deals as for Target is a barren wasteland with empty shelves and high prices.

    • ILG says:

      Yeah. Even here in the states you will see that TGT is generally more expensive. They try to lure a more upscale clientele.

      I like WMT, but am a little leery (at the moment) due to their soft quarter and continued struggles. Blaming the weather is a bit old, but I can understand the issues with less Government assistance programs. For the long haul, I don’t think these quarters are going to matter, but like you I am looking at a better entry point to add more shares.

      Take care!

  3. I don’t think any of these investments will feel like bad decisions 10 years from now. Each is a solid pick on the DIY side. Great list.

    • ILG says:

      Awesome logo!

      I agree. Each company has pretty good prospects IMO.

      The initial yields are a little low for me on a couple, but otherwise I at least like their products 🙂

      Take care!