05-25-2015, 07:16 PM
Long time lurker first time poster.
I am a 31 year old professional looking to build up half of my portfolio in dividend stocks (sticking the other half in your standard S&P500, Bond, and Intl. Stock vanguard funds).
I began funding the dividend portion of my portfolio about a year ago and can only buy a few positions (Roth) a year. Currently, my portfolio largely reflects the recent dips in some quality companies (BP, NOV, BBL, GE, CB).
I am most interested in long term performance of the portfolio.
This all leads me to my question: I am about ready to buy into my first healthcare stock. I am currently focusing on Baxter and ABT, however, i could probably take a harder look at JNJ.
What is the collective thought on these stocks? My reading has lead me to the following conclusions: (1) Baxter is relatively cheap regarding the uncertainty with the spin off. This could represent an opportunity, but likely the dividend will be stagnant for a several years as the companies settle themselves. (2) ABT has executed great for a bazillion years which is why investors are going to pay a premium for the stock. It has continuously found a way to provide high returns and grow. (3) JNJ is relatively cheap because of the growth concerns.
My current lean is towards Baxter because of the combination of cheap and room to grow. What are your thoughts? Is there another stock that I should focus on?
I am a 31 year old professional looking to build up half of my portfolio in dividend stocks (sticking the other half in your standard S&P500, Bond, and Intl. Stock vanguard funds).
I began funding the dividend portion of my portfolio about a year ago and can only buy a few positions (Roth) a year. Currently, my portfolio largely reflects the recent dips in some quality companies (BP, NOV, BBL, GE, CB).
I am most interested in long term performance of the portfolio.
This all leads me to my question: I am about ready to buy into my first healthcare stock. I am currently focusing on Baxter and ABT, however, i could probably take a harder look at JNJ.
What is the collective thought on these stocks? My reading has lead me to the following conclusions: (1) Baxter is relatively cheap regarding the uncertainty with the spin off. This could represent an opportunity, but likely the dividend will be stagnant for a several years as the companies settle themselves. (2) ABT has executed great for a bazillion years which is why investors are going to pay a premium for the stock. It has continuously found a way to provide high returns and grow. (3) JNJ is relatively cheap because of the growth concerns.
My current lean is towards Baxter because of the combination of cheap and room to grow. What are your thoughts? Is there another stock that I should focus on?