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12-08-2014, 10:21 PM
(This post was last modified: 12-09-2014, 02:15 AM by Dividend Watcher.)
I had to go back and look. As best as I can tell, you're holding: AAPL, KMI, KO, OHI, PM, T, SBUX & COP -- correct? Don't remember all that's on the watchlist.
I went back to my portfolios & watchlists looking for anything that said "buy me".
AFL still seems undervalued but with Japan hanging over their head, this is going to take a while to work itself out. I just sold a covered call on part of it today just to generate a little extra cash. I don't think it's going anywhere for a while.
JNJ you could argue is in it's normal range and still has a promising future.
CVX interests me here but I'm overallocated so I'll just watch & reinvest.
MCD took a spanking today. You might find an interesting price in the next few days if you can bear watching it languish for the next year.
TUP I keep going back and looking at trying to find a solid yes or no reasoning. I'm finding nothing compelling me either way here but if it dropped a few more points I'd begin to get convinced. I'd like a little more margin of safety since the majority of their sales are outside the US.
COP is a good choice here. That yield can sooth a lot of pain while waiting. During the recession, I sat with a double-digit loss in my wife's portfolio for almost a year so patience may be required.
The rest of the oil patch is looking pretty good now and for the next 6 months so I wouldn't rush. It may take a while for oil to come back up. You didn't miss the deals in the oil-related companies.
In other words, I'm not finding a lot of reasonable choices here. If you're really willing to hold for the long term and don't mind a little underperformance for a while, you could always look at some of the lower yield/faster growers such as V, MC, CHD, GWW, TJX, or NKE to name a few. All are a little pricey to me and the yield may buy some bubblegum but you're young so you have a long flight path.
Choices, choices!
CVX hit a new 52 week low today and 4% yield. The 5% yield price is $85.60. CVX has not been in that territory since the selloff of 2011. I will back up the truck if it gets there.
CVX is at or very close to a safe valuation. Morningstar rates fair value at $124 and 'consider buying' at $99. In my experience, anything that close to 'consider buying' is a bargain.
Then consider current yield of 4%. That is very close to what it was at the lows of 2008-09, when WTI got down to the low 30s. CVX continued to make money and raise its dividend then, and I think now will be no different. I have started nibbling.
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Currently have on my watch list for my Roth:
XOM
O
GILD
AAPL
SBUX(i want MORE!)
SO
EMR
and a few others.
Ill make a new thread with pretty excel sheets this weekend when I get some free time.
. Would it be better to buy the dip on this rather than purchase a whole new position? Since it is down so much from my initial investment.
