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I've been thinking a lot about quality lately, and thought it would be fun to have us work together to generate a list of the absolute best DG stocks. The top 10, 20, or 30 names that belong on every DG watch list. I know we all have somewhat different criteria and opinions, but let's see how much agreement we can generate.
In my imagination, these are DG stocks with a strong history of dividend growth, strong and reliable earnings, sustainable businesses, etc. Stocks that you could buy and hold for 10 or 20 years with minimal anxiety and oversight. Stocks that you would be comfortable buying if the market was going to close tomorrow for the next 5 years.
And I want to IGNORE current price / valuation. I'm not asking what is the best for purchase today; I'm asking what would you buy if you had limited resources and everything was equally on sale. (Of course you can't really ignore yield, since it is an important way to differentiate. Maybe assume you can buy the shares at a yield that is 20 percent above its average yield for the past 5 or 10 years?)
I'll open the bidding:
JNJ
MCD
KO
PEP
CL
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Great idea for a thread!
I'll add MO, T, XOM, O and MSFT.
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(01-17-2017, 04:46 PM)EricL Wrote: Great idea for a thread!
I'll add MO, T, XOM, O and MSFT.
Here are a few from a newbie.
T, CVX, ED, ABBV, CINF, LEG
All are Div aristrocrates with Div >3 and past 10 yrs of growth that would have doubled your money or more.
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Yes, could be an interesting topic.
Without question, the two AAA credit ratings: JNJ & MSFT.
Then, with reservations only because of the what we've just been through: XOM.
A company I've always admired for their reinvestment in research and the breadth of their product line: MMM.
A "Widows & Orphans" company who seems (to me) to have better picks for diversification over its biggest rival: T.
If you can stomach the forex issues: UL/UN & RY.
Because of their geographic reach, demographic changes and the ongoing diversification in their supply mix: SO.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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DIS, can't forget the house of mouse
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01-17-2017, 09:27 PM
(This post was last modified: 01-17-2017, 09:29 PM by Rasec.)
My 11 stocks considering diversification per sector:
Healthcare: JNJ
Energy: XOM
Basic materials: DOW
Tech: MSFT
Utilities: ED
Financials: V
Consumer discretionary: NKE
Consumer staples: PEP
Telecom: T
REIT: O
Industrials: BA
In full honestly V and NKE is considering my long term view towards retirement, if I was retired or about to, I would go with WFC and probably VFC, not really sure on this one.
crimsonghost747
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Well since we can ignore the current high valuation, then it would be ridiculous not to have a water utility in this list. WTR is my own favourite but any of the big ones is super safe.
Also RTN, they have had an excellent run and are still well positioned to keep on the same path. It's a bit volatile but still very well suited for a long term portfolio.
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01-18-2017, 09:02 AM
(This post was last modified: 01-18-2017, 09:02 AM by Kerim.)
I like the AAA credit rating approach DW, but am generally reluctant about tech for the long term. And in the case of tech, I might be more inclined to make a bet on something like INTC, CSCO, or QCOM. Do others agree about MSFT? Does tech have a place on this list? And is MSFT the consensus pick? (Not that we're limited to one...)
I agree that T should be on the list. A slow grower, but nice yield for balance. And stable.
Am I crazy to worry about oil companies for the long haul? XOM feels like a no brainer for this list, but I sometimes think the oil majors are one breakthrough away from a lot of trouble.
I'm actually a little surprised that folks haven't chimed in with a lot more consumer staples. I figured they would make up at least five of the top ten.
Also curious -- does anyone disagree about JNJ taking the number one position?
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for me if were talking the best in breed then I would go with JNJ, UNH, SNA, HD, CVX, LMT, D, VZ and PEP. A company has to have a good yield and growth to go along with it as well.
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(01-17-2017, 09:27 PM)Rasec Wrote: My 11 stocks considering diversification per sector:
Healthcare: JNJ
Energy: XOM
Basic materials: DOW
Tech: MSFT
Utilities: ED
Financials: V
Consumer discretionary: NKE
Consumer staples: PEP
Telecom: T
REIT: O
Industrials: BA
In full honestly V and NKE is considering my long term view towards retirement, if I was retired or about to, I would go with WFC and probably VFC, not really sure on this one.
I was also first thinking of top picks in each sector and would have almost the same names. Maybe ECL NEE DIS MMM would be my choices for those places. What about Nike not considering the current price, is it really a best of the best for long term?
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(01-18-2017, 11:05 AM)divmenow Wrote: for me if were talking the best in breed then I would go with JNJ, UNH, SNA, HD, CVX, LMT, D, VZ and PEP. A company has to have a good yield and growth to go along with it as well.
I'm interested in UNH for the growth numbers but it has every time looked too complicated/questionable with health insurance politics etc. Big market cap but short dividend history, do you see them in the aristocrats list in the future?
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