Perhaps it is time for me to pick up Biotech, more on that later.
This week I did began an overdue clean up on a basket of dividend stocks that I hold. I typically do not hold bonds but for balance I like to dividend-paying companies. When I buy these I do so with the idea that I will hold them forever. Well forever is a long time. I check these each quarter to see if they are still profitable and still paying a dividend and if not I sell them. Then about once a year I do an overall review of the portfolio and see if I can find any better choices.
Since reading The Ultimate Dividend Playbook by Josh Peters I have learned not to just focus on yield, but rather a combination of yield and dividend growth. Makes sense doesn’t it? If the dividend is growing the stock price should be following …or perhaps leading.
Of my dividend paying stocks held last year I was most impressed with the performance of DOV and not just for the dividend. This is the type of company that is ideal for this portfolio; just a great diversified industrial machinery company that you may never have heard of. It pays a modest dividend now, but it was much higher when I bought it, but look at what the stock price has done for the past two years:
In the dividend stocks I will be picking up I am most excited about GWW, another great industrial equipment company. This one you may be familiar as it has a catalog for maintenance type and industrial products that many use. Take a look at its two-year chart:
I sure don’t know if these gains will continue, but these are great companies that pay modest dividends and they have increased their dividends seemingly forever
What did I see in the weekend review?
1. IBD’s Market Outlook is still “ Market in Correction”
2. My interpretation of the Copernicus System continues to be long in the Market, some of the signs are encouraging, but some are not.
3. For stocks of interest I was attracted to BIDU, RHT, and GRMN. And then three biotech stocks BIIB, GENZ, and GILD. I think this is the third week in a row for BIIB and Cramer has touted GILD
Well I am still not ready to go with any of these on Monday, still just watching, but Biotech is getting very interesting
My "Stocks for a Trade" now consists of:
(Gains shown are the total since purchase)
GLD down –.64 %, still soft
Biotech is showing up here as well, I may well pick up either BBH or IBB
For normal ETF's, I still have both OIH and XLE. (oil related ETF's ), which contiune to do well and XLF which is dipping now.Have a great week!