Sunday, July 15, 2012

Dividend Payer Review

I was able to spend some time this weekend on a  Dividend Payer Review.

This is a basket of stocks that I hold, not for a trade…just the opposite. 

I look for:

1. Companies that not only pay a dividend consistently but consistently grow this dividend.

2. Companies that are profitable both long term and short term.

3. I expect them to beat the S & P 500’s chart, both long term and short term. Why not? These do exist.

Do I bend these rules a little? Yes, at times, but hopefully the plan is clear.

I won’t explain the complete basket here, but the top performers seen in this review were: CHD, MCD and WEC.

I don’t actually own CHD, but I will shortly. I will also pick up the ETF VPU, which I think will be a great holding to add some regular dividend, currently at 3.5%.

I hold a few stocks that just pay a generous dividend. These best is  LEG with its 5.24% dividend.
However my analysis shows that in 5 years CHD, MCD and WEC have potential to exceed or closely match LEG’s dividend with the added thrust of growth in stock price. I should explain that the percent dividend may still seem low for these companies in 5 years, but the “effective” dividend should have gown nicely as hopefully the stock price has continued to rise as it has in the past.

So what did I see in my weekend review?

 The 10-yr Treasury yield is now at 1.50, still trending ever so slightly downward.

IBD (Investor Business Daily) has now returned once again to: Up Trend Under Pressure

Copernicus Systems: Is still long but still mixed.

Moneys Flows are up now only in 1/3 portfolios with portfolio prices coinciding
IBD 50 Top Five: 
CTRX, GNC, MLNX, ALXN, AAPL  (good to see Apple’s return here). Interesting to see CTRX pop to number one, not sure why but “ Catamaran Corporation provides pharmacy benefit management (PBM) services and healthcare information technology solutions to the healthcare benefits management industry in North America”

Last Week:

Copernicus Top Stocks are:

Last Week:

Currently my "Stocks for a Trade" now consists of:

BIIB -.747%  Almost back to even, but the drop in position above causes concern…but will just watch for now

IBD 50 Basket Holdings Are:
None at this time

ETF’s for a trade are:
(All gains or losses shown are the total since purchase)
GLD (3) buys for -6.48%

What will I do?

I hope to do some buying and selling adjustments in the Dividend Payers. I’m in no big hurry, but I  have a plan to execute.

I am also looking at picking up more AAPL, not for a trade. I included  AAPL in my dividend review analysis, just for comparison and the results reminded me of the benefits of accumulating this stock.

Likewise a position in CHD will be added. This will be added outside of the Dividend Payers. I think this is another great stock to just buy and hold and it will hopefully add some balance to the AAPL holding. 

If you are looking at some stocks to buy and hold, check out AAPL and CHD . Do some research, give it some thought and please make your own decision, but I would like to hear your thoughts.

The short term trading for trading the market via FMU did not continue this week…I suspect the daily volatility will return and I will be watching as time allows.

I hope you have a great week.

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