Shopping List

[EricL]

(09-01-2017, 08:01 AM)divmenow Wrote: I already own CVX but it needs to come down more before I add to it. But that is my favorite name in the sector Eric. XOM you put in that discussion as well. OXY a nice name as well. All very nice yields. You buying the name here?

GE is a great buy if your only buying for the yield, that is if they can sustain it. I just don't see much upside in the name over the next 1-2 years. GE with all the layoffs; word now is the new CEO may cut the dividend. Dividend news next week. Also Buffet sold out. But if the new CEO can make the necessary changes and they can hit those numbers then 2019 your looking at a PE of 14.79. In 5 years you have made $0 money in the stock price. $400 or so in dividends for your 100 shares. Next 5 years you predict Eric?

I haven't bought any more energy of late. I already have ~10% of my portfolio in energy and don't want much more exposure than that.

I think concerns about GE cutting the dividend are a bit overblown. They will simply drop the share buybacks to conserve cash if they need to. I really doubt they would cut the dividend again, it would destroy whatever shareholder goodwill they have left after cutting during the crisis.

GE is trading at a 15.8 PE on 2017 estimates, which is the lowest valuation of any industrial on my 30 stock watch list. Even if they do just half of the 11% earnings growth expected by analysts, you are still looking at a nearly double-digit annual total return over the next 5 years.

Management announced a targeted payout ratio of 45-50% with the most recent increase. So I think dividend growth will be minimal for the next year or two until the current 61.5% payout ratio works itself down. But with a 3.9% yield I'm content with slow dividend growth for now as I let my dividend reinvestment compound.

Sentiment around GE is horrible, and I'm in the minority with my opinion, but I still think GE is a quality company with great assets and will do just fine in the long run.

[crimsonghost747]

Any opinions on Pepsi? I've been looking at it for a while but never pulled the trigger, now the shareprice is starting to look good so maybe it's time? I'll do some more research tomorrow but I'd love to hear your opinions as well.

[EricL]

I have PEP about 10% overvalued at current prices, but with a 2.9% yield and 6-7% growth it doesn't look all too bad.

I'm not sure I'd buy a full position all at once here, but nothing wrong with getting a starter position going if its something you want to own for the long term.

[crimsonghost747]

Thanks Eric.
I have similar feelings, the company itself looks very solid and a great long term holding. Especially loving the massive free cash flow, dividends will keep going up and they are easily able to keep buybacks at the current levels.

As for the price?
Current P/E 23, a little lower than the average for S&P500. Forward P/E (with the 2017 guidance of core EPS $5.13) is a little under 22. Both are a bit higher than I like to pay for but the company is close to a 6 month low so I figure it's time to dive in. This will be about $1000 or two thirds of this months budget, so indeed I'm just planning to start a position and then potentially adding to it later.

[divmenow]

PEP is also on my shopping list but I wont be pulling the trigger to it gets under $110. People are now drinking less soda. I have not had a soda in over 8 years lol. Their snack business is what will drive growth going forward. They are getting much more healthier now. But you cant go wrong long term at its current levels.

I also have PM, KHC, IBM, HRL, NUE and on my watch list. I could probably buy all 5 and do very well over the next 3-5 years. But will most likely buy PEP, PM and IBM.

[crimsonghost747]

(09-24-2017, 11:22 AM)divmenow Wrote: PEP is also on my shopping list but I wont be pulling the trigger to it gets under $110.

It closed at $111.85 on Friday. While I certainly get the point of setting target prices and trying to buy as low as possible, we are talking about a 1.7% difference. As long as the deal is buy and hold for years, I think that 1.7% makes very little difference in the end. Then again it depends on the amount you feel like buying too, I'll just grab 9 or 10 shares so that's $15-20 more I'll be paying. But if you're buying much more then it adds up quickly.

But let's hope it gets below $110 on Monday so we can both get some PEP! : It's been sliding lower for the past week, let's hope it continues.

[divmenow]

I actually bought 35 shares of PEP this morning at $111.53. Good price and feel good about it.

Next will be PM in the next several days!

[DividendGarden]

(09-25-2017, 09:19 AM)divmenow Wrote: I actually bought 35 shares of PEP this morning at $111.53. Good price and feel good about it.

Next will be PM in the next several days!

I don't think you'll regret buying PEP at this level for the long run.  And to reiterate, the difference is only 15 or 20 dollars more that you paid.  You won't miss that in twenty years.

[crimsonghost747]

(09-25-2017, 09:19 AM)divmenow Wrote: I actually bought 35 shares of PEP this morning at $111.53. Good price and feel good about it.

Next will be PM in the next several days!

Nice! I grabbed 9 shares just now.

[Binary]

Medtronic starts to be on my shopping list.

[chascornell]

(09-24-2017, 11:22 AM)divmenow Wrote: PEP is also on my shopping list but I wont be pulling the trigger to it gets under $110. People are now drinking less soda. I have not had a soda in over 8 years lol. Their snack business is what will drive growth going forward. They are getting much more healthier now. But you cant go wrong long term at its current levels.

I also have PM, KHC, IBM, HRL, NUE and on my watch list. I could probably buy all 5 and do very well over the next 3-5 years. But will most likely buy PEP, PM and IBM.

When will IBM bounce back?

Sent from my SM-N920V using Tapatalk

[crimsonghost747]

How about Disney at these levels? Still too expensive?