Your Top 10 Largest Holdings (2021)

[fenders53]

(03-23-2021, 06:01 AM)ken-do-nim Wrote:

(03-22-2021, 11:45 PM)Dividendwayfarer Wrote: My top 10 as of today (not consider funds in my 401k & HSA account)
1. XOM
2. ABBV
3. MO
4. T
5. UNH
6. AAPL
7. JNJ
8. PM
9. AVGO
10. AMZN

Nice.  I missed out on XOM when it was in the 30s and 40s; do you think it's still worth looking into now?

Ken,

When you get serious about building a true DGI port remember this one.  It's a great example of disciplined investing in my opinion.  Here is why I believe that.

Almost everything in his top 8 was thrown to the curb by the market within the past two years or so.  Still in his top ten as he was ignoring the noise and adding to at least some of them.  Now many of them are a little too expensive to buy.  He has a few growth stocks at the bottom of the list that will likely climb the list while he is collecting dividends from the others.  Average dividends on his core holdings are way above SPY.  

As far as XOM...  Commodities are VERY tricky.  Almost always extremely cyclical and I am bad at timing them.  It's not easy to repeatedly get it right.  The following is my opinion.  1.  You either buy them when everyone hates them and wait.  2.  You ride the momentum up and hope you can time your exit before you give most of it back and have to wait possibly years for the next cycle.  

I usually choose #1 and then I sell them too early on the way back up.  Option #2 may be viable now or soon.  The consensus is oil will go up a little or a lot in the next months.  It's hard to imagine it crashes.  

If you want some XOM I'd buy a small amount and spend some time learning commodities.  Pull up a 20+ year chart on oil-natural gas-gold-silver-copper-even semi conductors.  Look how volatile the price can be.  Notice how painfully long the down cycles can last.  Note how fast the prices move in both directions.  If you get shaken out you will lose.  If you get greedy you will lose. I truly do recommend you learn commodities  Throw down $1K and call it tuition if you lose some of it.  XOM yield is sweet so you can be a little patient.  That div was shakey though.  They were borrowing the payout.  XOM was "JNJ safe" for decades.  They aren't going out of business but those days are gone, and probably forever.  XOM is interesting to me here and definitely a little lower if it happens.  If I jump in I bet I am gone in a year or less.  I bailed too soon on option #1 above.