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Ok, with the market close to all-time highs and bargains nowhere in sight, I thought it would be fun for everyone to shout out their answer to this question:
You've got to make a purchase today -- at today's prices and other metrics -- of one good dividend growth stock. You'll have to hold it for the next 20 years at least. And forget for the moment about your overall portfolio; this is an isolated purchase and you don't need to worry about your allocations and weightings. What is the best buy / value out there right now?
My pick: XOM.
(Again, which is not to say that it is a bargain at these prices. Just that balancing all of the factors I care about, that seems like the best one at the moment to me, given the high prices all around.)
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I really like CVX as a long term play with a yield at 3.9%.
Kinder Morgan (KMI) is also very attractive at a 4.3% yield.
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JNJ or EMR
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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I kinda like M&Ms (MO and MMM).
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At current, would have to be JNJ for me.
crimsonghost747
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(04-23-2015, 01:57 PM)rapidacid Wrote: :RTN:
Agreed.
I would go with DIS or V.
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Hmmm. Two votes for RTN. I'll try to find some time soon to put it through its paces. Haven't looked at it too closely before.
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Ok, I've done a somewhat deeper dive on RTN. I'm glad you guys brought this one to my attention; it scores well in my system.
I'm still giving a strong edge to XOM, however, as single best DG stock at the moment.
RTN has a small edge in both earnings growth and dividend growth. Their payout ratios are about the same. XOM has a better-established DG streak, but I wouldn't ding RTN too much for that. Where XOM really dominates RTN is with a much higher current yield and a much lower P/E ratio. Those count for a lot with me, and make XOM seem like a much better value at the moment.
This is not to say anything bad about RTN. Now that it is on my radar, I will explore further and could imagine opening a position. But for "single best at the moment" I'm sticking with XOM. What arguments for RTN am I overlooking?
(Just for fun, XOM scores a 78 in my silly system, compared to 62 for RTN and 71 for JNJ.)
