The AI (ChatGPT) Dividend Handbook: Portfolio of Consumer Discretionary Dividend Stocks

Here is the response from ChatGPT for the prompt discuss five consumer discretionary dividend stocks symbols 400 words entered on May 23, 2023.

Consumer discretionary stocks represent companies that produce goods and services considered non-essential or discretionary. These stocks are typically tied to consumer spending patterns and tend to perform well during periods of economic growth. While not all consumer discretionary stocks pay dividends, here are five that do:

1. Target Corporation (TGT): Target is a well-established discount retailer that operates both brick-and-mortar and online stores. The company has been performing well, driven by strong sales growth and successful strategic initiatives. Target has a solid dividend history, consistently raising dividends for over a decade. Its dividend yield is approximately 2% and is supported by a healthy payout ratio.

2. Procter & Gamble Co. (PG): While primarily known for its consumer staples products, Procter & Gamble also operates in the consumer discretionary sector with its personal care and grooming brands. The company offers a diverse portfolio of well-known brands and has a strong track record of paying and increasing dividends. With a dividend yield of around 2.5%, Procter & Gamble is considered a reliable dividend stock.

3. Starbucks Corporation (SBUX): Starbucks is a renowned coffeehouse chain that operates globally. With its strong brand loyalty and continuous expansion, the company has demonstrated resilience in the competitive coffee industry. SBUX has been paying dividends since 2010 and has steadily increased its payouts, making it a dividend stock worth considering.

4. McDonald's Corporation (MCD): McDonald's is one of the world's largest fast-food chains, offering a wide range of burgers, fries, and beverages. The company's global footprint, consistent demand, and focus on menu innovation have contributed to its success. MCD has a long history of paying dividends, dating back to 1976, and has a track record of dividend growth.

5. The Home Depot, Inc. (HD): Home Depot is a leading home improvement retailer, catering to both do-it-yourself enthusiasts and professional contractors. The company benefits from a strong housing market and its extensive product offerings. HD has been paying dividends since 1987 and has consistently increased its dividend payments, reflecting its commitment to returning value to shareholders.

Investing in consumer discretionary dividend stocks can offer the potential for both capital appreciation and regular income. However, it's crucial to conduct thorough research and consider various factors, including the company's financial health, competitive position, and consumer spending trends, before making any investment decisions. Additionally, consulting with a financial advisor can provide personalized guidance based on your investment goals and risk tolerance.

Table and Chart of Portfolio of Consumer Discretionary Dividend Stocks Performance (From buyupside.com. Not from chatGPT.)

Values are based on monthly closes adjusted for splits and dividends from Alpha Vantage.

Portfolio Values

To inspect the performance of the Portfolio of Consumer Discretionary Dividend Stocks portfolio, see the chart below. Portfolio values are computed using monthly closes for stocks from Alpha Vantage.

All 5 stocks are included in the portfolio computations. The current value of the portfolio assumes that $2,000.00 was invested in each stock at its closing monthly price for the first date shown on the portfolio value chart below. All prices are adjusted for splits and dividends.

The current value of the $10,000 investment is $17,249. The percent return is 72.49%. The annualized return is 11.52%.