Wal-Mart Stores, Inc. (WMT), The Coca-Cola Company (KO), 3M Co (MMM): Buy Individual Stocks Instead of Dividend ETFs

Meanwhile, 3M Co (NYSE:MMM) raised its dividend early this year, which marked the 55^th consecutive year of dividend increases. Furthermore, 3M Co (NYSE:MMM) has paid uninterrupted dividends to shareholders for an amazing 96 years in a row.

Lastly, GlaxoSmithKline plc (ADR) (NYSE:GSK)’s management remains steadfast in their commitment to increasing its payout. The company declared a fourth-quarter dividend higher than its quarterly payout last year.  GlaxoSmithKline plc (ADR) (NYSE:GSK)’s four quarterly dividends in 2012 amounted to 74 pence versus 70 pence in 2011, an increase of more than 5% year over year.

The instant portfolio

While I’ve only selected four stocks to form the foundation of a portfolio, it’s worth mentioning that these stocks come from a variety of industries. By gaining access to a retailer, a consumer staples stock, an industrial, and a health care company, you’ve got many of the necessary bases covered immediately.

This strategy might not be for all investors. Extremely conservative investors afraid of dipping their toes into individual stock-picking might be understandably wary. However, for those with at least some appetite for higher risk-taking, you can secure a 3% portfolio yield, assuming equal weighting of these four stocks. Making things even better, you’ll be able to avoid the expenses and fees that come with fund investing.

The Vanguard Dividend Appreciation ETF is a solid fund that will suit many investors just fine. On the other hand, if you’re interested in producing an even higher level of income than this fund provides, it’s entirely possible to do so by cherry-picking some of this very fund’s top holdings.

The article Buy Individual Stocks Instead of Dividend ETFs originally appeared on Fool.com and is written by Robert Ciura.

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