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Portfolio suggestions?
#1
Hello again,

I can't believe so many months have passed since I originally posted. I will probably stand pat unless there is an absolute fire sale, or y'all have some suggestions I can explore.

So far I have,

ABBV
ABT
AEP
CMI
DOW
EIX
GE
JNJ
KO
MO
PG
UPS
XOM

It doesn't look like much listed out, does it? I need some Telcom and Financials, but for some reason just haven't been able to pull the trigger. I don't like individual tech stocks. Perhaps I should buy a financial, tech, or telcom etf?
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#2
(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.
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#3
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.
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#4
(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.
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#5
(10-15-2015, 02:17 PM)ExDripper Wrote: Hello again,

I can't believe so many months have passed since I originally posted. I will probably stand pat unless there is an absolute fire sale, or y'all have some suggestions I can explore.

So far I have,

ABBV
ABT
AEP
CMI
DOW
EIX
GE
JNJ
KO
MO
PG
UPS
XOM

It doesn't look like much listed out, does it? I need some Telcom and Financials, but for some reason just haven't been able to pull the trigger. I don't like individual tech stocks. Perhaps I should buy a financial, tech, or telcom etf?

Thought I'd update this thread as a good way to keep track. 

Since the original post I've dipped a toe into tech for the first time! 

All the new additions are:

BAX
PFE
QCOM
INTC
IBM
CSCO

They are all small positions in the scheme of things and I will concentrate on these and a few other new small positions when prices and P/E are good.
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#6
(03-24-2016, 10:56 AM)ExDripperThought I\d update this thread as a good way to keep track. Wrote: Since the original post I've dipped a toe into tech for the first time! 

All the new additions are:

BAX
PFE
QCOM
INTC
IBM
CSCO

They are all small positions in the scheme of things and I will concentrate on these and a few other new small positions when prices and P/E are good.

Small positions is a great way to build up diversification.  If you commission rates are good, you could build up 1/4 or 1/3 positions across a few companies, or load up on one when it's on sale.
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#7
Ex, interesting how you went from a skeptic of the tech sector to having a whole bevy of them in the stable. Big Grin That's OK, you've got a nice start there. I would now start backfilling your positions when prices become reasonable again before I'd venture into another big add in company count.

Great job! Cool
=====
How do they get the deer to cross at that yellow road sign?

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#8
(03-24-2016, 02:17 PM)DividendGarden Wrote: Small positions is a great way to build up diversification.  If you commission rates are good, you could build up 1/4 or 1/3 positions across a few companies, or load up on one when it's on sale.

That's what I finally decided. Instead of buying two, I'd spend what I had at the time and buy what looked good/decent from a price P/E perspective. I will circle back and build these up next month as I can, if everything looks okay.

(03-24-2016, 04:49 PM)Dividend Watcher Wrote: Ex, interesting how you went from a skeptic of the tech sector to having a whole bevy of them in the stable. Big Grin That's OK, you've got a nice start there. I would now start backfilling your positions when prices become reasonable again before I'd venture into another big add in company count.

Great job! Cool

LOL, I know about the tech!  Undecided Especially IBM, since I intensely dislike their sales tactics and terrible hardware & systems software. (Except AIX)  I plan to circle around this grouping next month and add to the ones I didn't catch this month. It feels like herding.

I could KICK myself for not buying T when the price was good. The only reason I didn't was that I am trying to keep my individual positions to A- or higher credit ratings. Maybe that's wrong thinking.

Thanks for your input. I'll update this thread again when I have enough input.
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#9
Shocked 
Good Grief. it's been a loooong time. Because of that I can't remember when I did what, but I'm updating my list, this time in alphabetical order. A few are not my full initial investments, but all those are now less than 1k off, so that's close enough for horseshoes.


Edited to add two stocks I've owned for awhile and forgot to include!!! Noted with an *

ABT
ABBV
AEP
*AAPL
BAX
CLX
CMI
CSCO
CVS
D
DG
DOW
EIX
GE
IBM
INTC
*JNJ
KO
LOW
MO
OHI
PFE
PG
PM
QCOM
UPS
WEC
WMT
XOM

I'd like some BRK.B, but I think it's too high now. Don't like banks (yeah, I know I said the same for tech stocks and look at me now  Big Grin ) For some inexplicable reason I've stayed away from T and VZ although I sure do like the dividends. I suppose it's because I could have bought much lower but made other choices. Oh well. As always, I'm open to comments and suggestions.
Thanks everyone.
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#10
I think you've done a great job. Nice mix of growth and higher yielders there.
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