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I am planning to buy one stock this week for 1K as part of my monthly. Like for your input as to the attractive price and quality for any of these:
( Between M* and S & P Capital reports, they seem to be fairly valued)
I already have: JNJ, KO, PM, OHI, UNP (around 10 shares in each)
BBL
NSC
OKE, OKS
BHP
T
PG
WPC
RDS.B , CVX, XOM, COP, KMI
TGT
Thanks guys.
Paul
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Some great names there, and some that I am not too familiar with. I'll just say that, to me, XOM seems like a really great buy right now. I wish that I had more dry powder to throw at it!
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T & PG are a tad expensive, though I love the Divs from T.
TGT is a little expensive, I hit that one at 56, some time back.
XOM is very nice, IMO,
COP is not bad either.
The remainder I'm not sure about or don't follow.
Good luck.
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Considering you don't have any energy yet, I would go with either XOM or CVX.
It's pretty tough to pass up XOM at a greater than 3.5% yield. That just doesn't happen very often.
T also seems like a good choice to me.
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Considering your diversification, I'd also go recommend going with an energy name, esp since most energy names are very attractively valued.
I own CVX and its at a great price right now. I know XOM is popular with most DGIs, although I havent done my own research - but it does make me wonder why Buffett dumped the shares in XOM and invested in SU instead (which is another great energy company - seeing increased stake from BRK lately, also seeing insider buying from CEO). SU is also making some bets in the renewable energy sector - with ownership in wind farms (although not as much as some of the utilities companies).
As if I havent muddied the water enough, I am also a huge fan of owning pipelines - they are more resilient and I love the idea of charging a toll on a regular basis. The best of the breed is KMI - I have a full position. I also own a Canadian name called Inter Pipeline (IPL.TO) which pays distributions monthly. Other names to consider - Enbridge (ENB), TransCanada (TRP), Pembina (PBA, PPL.TO).
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Thanks guys, very helpful!
From my research, XOM seems to sport better fundementals than CVX (although it has higher yield).
I am also eyeing on T.
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Not on your list, but I think Emerson Electric, Phillip Morris and Enterprise product partners are very close to my buy zone.
Ronn
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I'll chime in with adding an energy, XOM or CVX, here. Both are attractive at this point so pick the one you're more comfortable with.
I also like Ron's suggestion of EMR or PM. I'd suggest taking a closer look at WPC here too although you may get an even better yield point later in the year when Yellen works her magic.
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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 second what everyone said about XOM or CVX and I would never let what WB does with his portfolio persuade one to not invest in a company such as XOM. Warren has a different way of investing and doesn't necessarily follow the same rules as us commoners. In fact, just because he buys a particular stock doesn't mean that we should knock down the door and buy that stock too.
As far as BBL and BHP, if you are a United States tax payer then I would consider BBL over BHP. It's all about taxes on this one. This company is very cyclical and can be picked up at good prices, this company was also hit very hard during the oil crisis, loosing billions of paper worth.
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Too often people take what WB does or says as religious mantra.
If one lived by his exact mantra, you would never invest in AAPL. But the reason Buffett was against tech stocks was bc it was not in his circle of competence. He freely admits that. Just as I am not going to invest in foreign insurance companies bc I simply don't understand them as well as say NKE or HSY.
I'm very comfortable for example investing in QCOM, which I think is a good value right now, b/c I'm a programmer/tech oriented. On the other hand, another fairly valued company, AFL, is a business that I am not strong at evaluating, which means I have less confidence in my purchase decision, which can lead to making rash moves.
It's really about psychology. You are more likely to buy a stock you can understand when it's the right time to buy, and bc you are confident in it, you will weather the rough patches.
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BEN, STX, UNP, CVX, ARLP and QCOM are at the top of my attractively valued companies right now
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I'm going to try to catch XOM, PH, OHI, and some BRK.B on this dip. (I know, BRK pays no dividend, but I want some, dammit, and the price is right!)
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