Itching to Buy

[Kerim]

So I'm in the mood to buy some shares. I've got a few on my list that I think are trading at reasonable valuations. None is a screaming buy, in my opinion, but those are rare these days. My current short list is:

MCD
TGT
IBM
HCP
T
XOM

Also maaaaybe in the mix:

KO
BRK-B

What do you think? Am I overlooking any excellent candidates? Of the ones on my list, which would you be most inclined to pull the trigger on?

Thanks!

[DividendGarden]

(08-15-2014, 11:14 AM)Kerim Wrote: So I'm in the mood to buy some shares. I've got a few on my list that I think are trading at reasonable valuations. None is a screaming buy, in my opinion, but those are rare these days. My current short list is:

MCD
TGT
IBM
HCP
T
XOM

Also maaaaybe in the mix:

KO
BRK-B

What do you think? Am I overlooking any excellent candidates? Of the ones on my list, which would you be most inclined to pull the trigger on?

Thanks!

Great minds think alike. I am planning on adding to my DE, MCD, WAG, TGT, and XOM positions in the next week or two.

[Kerim]

(08-15-2014, 11:21 AM)DividendGarden Wrote: Great minds think alike. I am planning on adding to my DE, MCD, WAG, TGT, and XOM positions in the next week or two.

Alike indeed! DE is a good catch, I should have had that on my short list already. Not sure why I overlooked it; I could average down at today's prices.

WAG would be on the list too, if I had not already bought some more after the 15 percent drubbing it took recently when it announced it would not invert.

[EricL]

Here are some other names I've either bought recently or think look like decent options, depending if you are looking strictly for income or want some more growth in the portfolio.

Ameriprise Financial (AMP)
AT&T (T)
Blackrock Inc. (BLK)
Chevron Corp. (CVX)
Conoco Phillips (COP)
Cummins Inc. (CMI)
General Electric (GE)
Helmerich & Payne (HP)
Kinder Morgan Inc. (KMI)
Qualcomm (QCOM)
Ross Stores (ROST)
Southern Company (SO)
Union Pacific (UNP)
United Health (UNH)
Visa (V)

[Turvok]

I've been thinking of selling my AT&T shares. The dividend is great, but the DGR is below that of inflation. I think you can hold it for about a year or so until inflation picks back up, but I would look into something with higher than a 2.5% DGR. I've been looking at DE as well as GRMN lately.

[Kerim]

(08-15-2014, 12:20 PM)Turvok Wrote: I've been thinking of selling my AT&T shares. The dividend is great, but the DGR is below that of inflation. I think you can hold it for about a year or so until inflation picks back up, but I would look into something with higher than a 2.5% DGR.

It's a good point, Turvok, thanks. Personally, I've been leaning lately towards giving more weight to initial yield than to DGR. A low starting yield can take decades to catch up, even with a projected and sustained high DGR. At any rate, I like to have some of each in my portfolio (what I like to call "yield diversity). So as long as I buy some higher DGR names also, I am happy to increase my exposure to a high (but stable) yielder like T, even if the DGR is going to be sluggish.

[EricL]

(08-15-2014, 12:20 PM)Turvok Wrote: I've been thinking of selling my AT&T shares. The dividend is great, but the DGR is below that of inflation. I think you can hold it for about a year or so until inflation picks back up, but I would look into something with higher than a 2.5% DGR. I've been looking at DE as well as GRMN lately.

I bought AT&T recently as I think growth is about to pick up. I think the DirectTV acquisition will help and could lead to higher dividend growth after the deal is completed.

Even with worst case 5% initial yield and 2% dividend growth, with compounding of reinvested dividends you get a 10% yield on cost in 10 years.

[Roadmap2Retire]

Stocks I would buy (that are already in my portfolio) if I had more cash:
CVX, WFC and T.

[earthtodan]

I've been adding to QCOM and UTX. I might still add to the latter. I would add ESV but I need to stop buying offshore drillers.

Last week I bought a small position in PNR around $65. Also took a small position in TIS just for fun.

[Kerim]

(08-15-2014, 01:23 PM)Roadmap2Retire Wrote: Stocks I would buy (that are already in my portfolio) if I had more cash:
CVX, WFC and T.

WFC is another good catch, gonna add that to the short list. Thanks.

And just pulled the trigger on a small pile of T, having talked myself into it in an earlier post.

[rapidacid]

(08-15-2014, 01:43 PM)Kerim Wrote:

(08-15-2014, 01:23 PM)Roadmap2Retire Wrote: Stocks I would buy (that are already in my portfolio) if I had more cash:
CVX, WFC and T.

WFC is another good catch, gonna add that to the short list. Thanks.

And just pulled the trigger on a small pile of T, having talked myself into it in an earlier post.

Top 10 results from running my screener on my own portfolio returns:

QCOM, HP, CALM, GPS, RTN, BLK, UNP, LMT, ARLP, CBRL

[Dividend Watcher]

I like HP at these prices but would also take a look at ESV. HP more for land drilling and ESV for off-shore. ESV seems to have controlled their debt well considering they're also building out their deepwater fleet on spec. The market has sold it off because of it. I consider ESV more as a value/more speculative play and may take some patience.

I like UTX at these prices even though it does have a low yield. Diversified industries and management seems very adept. Still working on paying down some of the debt from the Groodrich acquisition but they've handled it well.

I agree WAG is at a good entry point right now. Too bad I'm too full to take on more.

ROST and TJX have both been beaten up with the dour news about retail for the year. However, I believe they fill a niche between the dollar store/Walmart customers and the Kohls, Target and Macys of the world. Low yield but wonderful, long-term growth with lots of room for expansion.