Sunday, March 27, 2011

Dividend Stocks and Biotech Discussed

Perhaps it is time for me to pick up Biotech, more on that later.

Dividend Stocks

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)


KLAC 1.76, at least it has turned around


CMG   3.90, a nice gain this week


EMC  10.78, very nice now.


AAPL   10.90 also nice once again


The ETF's for a trade:

USO  3.81% up this week as was expected .

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!

2 comments:

  1. Excellent post. My review is - Nice post by good author :
    Lindsay Rosenwald http://www.lindsayrosenwald.info/ Lindsay Rosenwald – complete biography.

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  2. Thanks Lindasy, glad you enjoyed

    ReplyDelete