Best of the Best?

[Rasec]

(01-18-2017, 12:08 PM)O Wrote:

(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?

I honestly don't know. But I find the consumer discretionary sector one of the hardest ones to predict long term trends. Consumer trends and fashions are evolving too quickly, I considered a few other options like MCD, SBUX, DIS or HD, but none has the growth potential that NKE has.

[Binary]

(01-18-2017, 09:02 AM)Kerim Wrote: 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.

This was my expectation too

If I could only pick only 5 I'd probably pick one from those 5 sectors:
- Healthcare: JNJ (although CVS is interesting)
- Tech: IBM
- Consumer: VFC or PG or maybe GIS 
- Industrials: MMM, DOV, CAT, BA or EMR - it would be really hard to pick one here, would probably go for MMM
- Utilities: SO or ED if I was in a conservative mood, otherwise NEE

There are some areas where I'd not pick at all, typically tobacco, oil or finances.

[Kerim]

(01-19-2017, 09:20 AM)Binary Wrote: There are some areas where I'd not pick at all, typically tobacco, oil or finances.

Tobacco is a really tough one for me with respect to this list. MO is far and away the best stock I've ever bought, and I think maybe the best performing DG stock of the 20th century. I can imagine it keeping that status for decades to come, but it is also easy to fall prey to the doom and gloom about tobacco's dwindling user base and bleak future. Of course, "they've" been saying all of that for many years.

Would love to hear more opinions about whether MO and PM (others?) belong on the 2017 best of the best, hold for many years to come list.

[ChadR]

PM is my largest holding. Being entirely foreign sales, the market is huge. Some anecdotal evidence, when my wife and I were in Cancun last summer at an adults only resort, every Brit, Canadian, and South American we met smoked. Also a fair amount of the younger Americans were smoking too. I'm 41 and as long as I can remember, smoking was on the way out from no being able to advertise, surgeon general saying that smoking will kill you, the excessive sin taxes, and all the older customers were dying. I'm still getting my very large and getting larger dividend checks every 90 days.

I'm happy to have this cash cow generating lots of cash. I don't see smoking going away anytime soon. I like PM more than MO because of the lesser regulations in the countries outside of the US.

[O'Bazooka]

(01-18-2017, 01:13 PM)Rasec Wrote:

(01-18-2017, 12:08 PM)O Wrote:

(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?

I honestly don't know. But I find the consumer discretionary sector one of the hardest ones to predict long term trends. Consumer trends and fashions are evolving too quickly, I considered a few other options like MCD, SBUX, DIS or HD, but none has the growth potential that NKE has.

Yeah I guess it's cyclical by definition. Not concerning sector exposure my absolute top 10 would be:

J&J
Nestle
3M
Pepsi
Visa
Unilever
P&G
Microsoft
Exxon
AT&T

in that order. Heavy on staples as expected, also MO/PM should maybe take some place. Not sure about tobacco though and at least personally will stay away. Moreover not sure about being comfortable with oil.

[NilesMike]

(01-19-2017, 12:04 PM)ChadR Wrote: PM is my largest holding. Being entirely foreign sales, the market is huge. Some anecdotal evidence, when my wife and I were in Cancun last summer at an adults only resort, every Brit, Canadian, and South American we met smoked. Also a fair amount of the younger Americans were smoking too. I'm 41 and as long as I can remember, smoking was on the way out from no being able to advertise, surgeon general saying that smoking will kill you, the excessive sin taxes, and all the older customers were dying. I'm still getting my very large and getting larger dividend checks every 90 days.

I'm happy to have this cash cow generating lots of cash. I don't see smoking going away anytime soon. I like PM more than MO because of the lesser regulations in the countries outside of the US.

I was at a Luau in Maui last week with a "big" player in the Cali cannabis industry. They are positive that when legalization occurs at the Federal level, big tobacco will take over the cannabis business.

I wouldn't worry about your tobacco stocks.

[aagha]

(01-18-2017, 09:02 AM)Kerim Wrote: 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...)

MSFT without a doubt.

Under new leadership from Satya Nadella, MSFT has been tearing it up: In addition to great products, combined with Apple's (tech) faltering, there's a resurgence of Windows 10.

[Forticus]

(01-17-2017, 04:37 PM)Kerim Wrote: I've been thinking a lot about quality lately, ... generate a list of the absolute best DG stocks. 

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.

Our son got a voucher for a dividend growth portfolio in the mid-five figures to his 18th birthday a week ago, so thanks for this thread. I looks like a good starting point.

From my holdings I would believe that AAPL and BLK will be there in 10 to 20 year of mid-and-stable growth. PFE and AMGN as well. Their "sustainable business" seems to include adaption and reinventing themselves and their visions, respectively.
I didn't see any Canadian growers like RY, TD and Telus. Is the currency rate a "quality problem" to U.S. investors?

for 10 or 20 years? Can we allow anything below Champions on that list with a reference to suredividend's article about a "Lindy effect" ? 
http://www.suredividend.com/lindy-effect/