(10-15-2015, 09:06 PM)Dividend Watcher Wrote:(10-15-2015, 02:17 PM)ExDripper Wrote: It doesn't look like much listed out, does it?
A journey begins with the first few steps! NONE of us started with a 50 position, million dollar portfolio.
Looking good so far, ExDripper. One thing is I don't know if this portfolio is retirement money or not and your time frame. I'm assuming it is and you've got a while before you need it.
FINANCIALS: Everyone talks about WFC but I haven't done any research on them. If you can stomach the exchange rate fluctuations, I'd look at the Canadian banks. Over a 10 year time frame the forex issues should average out and they're paying a nice yield right now. The only insurance company I know anything about is AFL. I hold it and over the longer term dividend growth rate and earnings should improve. I believe management is making slow, measured moves away from relying on Japan for the bulk of their profits. I've noticed more and a more aggressive salesforce the last few years in the U.S around me.
Any interest in REITs? I know they're a part of financials but I believe S&P is breaking them out to a separate GICS category in 2016. WPC/HCP/OHI aren't priced too high right here. Then there's O -- a little pricey here, IMO. DLR? HCN? NNN?
TECH: If you paired APPL/MSFT in half positions, you'd have quite a bit of tech (retail and general business) covered unless you're really into hardware. APPL's priced well here, MSFT not so much.
TELECOM: T or VZ. Both yielding more than 5%. Slow growth but the cash machine gives you ammo to reinvest or buy others. Check free cash flow vs. EPS for more realistic payout ratios.
If you don't mind the exchange rate issues with the banks mentioned above, may also want to look at BCE (Bell Canada) or Telus (TU). BCE has the yield and TU is an interesting growth play.
There's others but you specifically asked about those sectors. Hope that gives you ideas.
Thanks so much for your thoughtful and detailed response. I've made note of your suggestions. At the moment I'm at the ceiling of equity percentage, so it'll take a couple of months to build up spendable cash excess.
(10-15-2015, 09:55 PM)Roadmap2Retire Wrote: Div Watcher has summarized it well above.
Cant go wrong with Canadian banks if you dont mind the currency fluctuations. But in the US, I really like (and own) WFC. I havent done a full analysis lately, but its a solid company and cant go wrong with it. There's a reason its Berkshire's top holding company.
REITs are also a great income play - I own O, OHI, VTR (and the new spinoff CCP) in the space. I agree with DivWatcher's comment - OHI's valuation is great, O not so much.
Tech - I own AAPL and QCOM. Great long term stories and great valuations currently. Also, have a look at MSFT, TXN in the space, which are great long term plays with DGI track records.
Nothing wrong with going with a ETF imo. I used to own an ETF in the Utilities space for years until I could understand and figure out hte industry better. Once I had a better understanding, I decided to liquidate and went with individual stocks instead.
Thanks for your thoughtful input. I am low in financials so it's likely my next purchases will include some banks. I could kick myself for not buying AAPL when I had case and it was $99.xx!!! REITS are something I would love to buy, but my IRA is very small so my purchases are in taxable, a no-no for REITS.