Suggestions for Improvement?

[Dexter]

Below is my current stock portfolio. As of now, this accounts for 8.52% of my entire investment portfolio. Note that I have made no attempt as of yet to diversify these holdings in any way as they account for such a small percentage of my entire portfolio.

I am trying to buy things that I can hold for a long time, and never have to sell. Are there any stocks you would remove? Is there anything that sticks out as a bad or toxic in any way? Any opinions would be appreciated.

AWK
BUD
CHFC
CWT
DIS
GIS
HAS
HSY
INTC
K
KO
MCD
MSFT
NKE
PEP
PG
TEG
TGT
TMP
UL
VFC
WMT
XOM
YORW
YUM

Thanks for the help

[Dividend Watcher]

Dexter, what does your portfolio plan say? Are you following it?

That being said, I'll make a few comments but don't take my opinion as investment advice. I'm looking at it as if it were MY portfolio.

First, either you have a large portfolio value or some of these holdings are pretty small. 25 stocks yet individual stocks are only 8% of the portfolio? My plan says the stocks have to regularly increase their dividends but I can hold up to 10% of the portfolio in "special situations" stocks as long as they pay a dividend. That's where ROST and INTC sit in my portfolio now. ROST is my "higher growth/low yield" stock and INTC is my "non-rising dividend hoping for a resumption" stock. Using that, I'd get rid of any companies that don't meet that criterion. Last I knew BUD is no longer a serial dividend raiser since InBev bought them and, with their low yield right now, they would be gone. DIS too but they have a golden franchise so maybe that's not a good idea.

You have most of what I'd consider core: GIS, KO, PG, PEP, MCD, WMT, UL, XOM.

What I did notice conspicuously absent was healthcare. To me, that's a core sector. How about JNJ, BAX, BDX, MDT, ABBV, ABT?

Just my few simple thoughts.

[Dexter]

Thanks for the reply. I just try to stick to a certain percentage of bonds/stocks for my overall portfolio.

As far as the stocks, I don't really have a plan other than trying to buy things that will be around for a long time, or at least things that I think will be around for many years to come. I also try avoid paying commissions unless I really want something. All of those stocks were purchased with little or no commissions.

You are right I don't have any health care stocks and at some point I'd like to add JNJ among other things.

I also don't have any telecoms, tobacco stocks, or electric utilities, so maybe T, MO, ED, PM would make good additions as well.

Thanks

[fiveoh]

What are your goals with the portfolio? Is this a dividend growth portfolio, or just an income portfolio? IMO INTC does not belong in a dividend growth portfolio because it is NOT growing the dividend. I'm sure I will catch some heat for that on here. hah.

[Dexter]

Just income but dividend growth is better. All of those companies have raised their dividends except INTC.

If they cut it then I am a seller, otherwise I'll hold it until then.

Nah no heat

My most uncomfortable position is actually Target. Now this is just anecdotal at best, but it just feels like EVERYONE goes to Walmart instead.


Thanks for your reply!!

[Kerim]

(02-17-2014, 10:20 PM)Dexter Wrote: My most uncomfortable position is actually Target. Now this is just anecdotal at best, but it just feels like EVERYONE goes to Walmart instead.

IMO, this is a great time to be accumulating TGT. They are in a protracted doldrum, offering good entry prices, but it will not last forever. In a few months or years, the wheel will turn again, and WMT will be on everyone's shit list and TGT will be the darling. Then you watch all of your TGT shares outperform, and begin accumulating WMT while it is out of favor. Rinse and repeat until you are rich!

[CritMass]

(02-18-2014, 10:12 AM)Kerim Wrote:

(02-17-2014, 10:20 PM)Dexter Wrote: My most uncomfortable position is actually Target. Now this is just anecdotal at best, but it just feels like EVERYONE goes to Walmart instead.

IMO, this is a great time to be accumulating TGT. They are in a protracted doldrum, offering good entry prices, but it will not last forever. In a few months or years, the wheel will turn again, and WMT will be on everyone's shit list and TGT will be the darling. Then you watch all of your TGT shares outperform, and begin accumulating WMT while it is out of favor. Rinse and repeat until you are rich!

Kerim, excellent quote for the DG Investor: Wash...Rinse...Repeat.