With the extremely fluctuating markets over the past 10 days, I decided to revisit my watch list.
I'm always looking for good value and to add a company to my stash to add more stability to my portfolio. The more companies you have, the safer it is overall.
With 97 companies in the portfolio, if one goes down the tubes, I have merely lost small percentage of my portfolio. Having all your eggs in one basket is opening up yourself to potential catastrophe.
Imagine having only 10 companies and see one go tits up? 10% of your portfolio is gone. Having 97 companies and not allowing any one of them to be disproportionally owned, I'd only lose about 1% of one goes to hell.
My watch list is a list of companies I do not yet own. I actually keep tabs on the ones I already own and will also add to them if it becomes a great value.
I look for 6 basic things a company needs to have to make my list:
The one I rally am digging this month is John Deere (DE). I am a bit weary of Royal Caribbean Cruises due to the virus, but I'l keep an eye on it. ...That's why this is a "watch" list...
Things are going so up and down that this may be obsolete info by tomorrow....
but here it is.
NOTE: THIS IS NOT A RECOMMENDATION TO BUY ANY OF THESE. THIS IS WHAT I AM CONSIDERING. NOT YOU.. DO YOUR OWN RESEARCH FOR GOD'S SAKE.
I'm always looking for good value and to add a company to my stash to add more stability to my portfolio. The more companies you have, the safer it is overall.
With 97 companies in the portfolio, if one goes down the tubes, I have merely lost small percentage of my portfolio. Having all your eggs in one basket is opening up yourself to potential catastrophe.
Imagine having only 10 companies and see one go tits up? 10% of your portfolio is gone. Having 97 companies and not allowing any one of them to be disproportionally owned, I'd only lose about 1% of one goes to hell.
My watch list is a list of companies I do not yet own. I actually keep tabs on the ones I already own and will also add to them if it becomes a great value.
I look for 6 basic things a company needs to have to make my list:
- Good dividend yield. I prefer to beat inflation. The green cell means it is over 3.5%
- A Payout ratio that allows growth (under 60%)
- Solid dividend increases. I like looking at a 5 year average.
- A price to earnings (P/E) under the S&P average of 22.
- Earnings Per Share Growth over 5%
- PEG ratio around 1.
Not all of these companies are 5 for 5. Look at LYB. It still makes my list because its' a solid company with a long track record of adding to its dividend.
The one I rally am digging this month is John Deere (DE). I am a bit weary of Royal Caribbean Cruises due to the virus, but I'l keep an eye on it. ...That's why this is a "watch" list...
Things are going so up and down that this may be obsolete info by tomorrow....
but here it is.
|
SYMBOL
|
Yield
|
PAYOUT RATIO (under 60%)
|
5 YEAR DIV INC %
|
1YR. P/E (under S&P 22.02)
|
EPS Growth (over 5%)
|
PEG (1 or under ideal)
|
|
AMP
|
2.69%
|
29%
|
10.83%
|
12.83
|
-1.69%
|
1.11
|
|
DE
|
1.86%
|
29%
|
6.23%
|
15.98
|
61.79%
|
0.98
|
|
LMT
|
2.39%
|
44%
|
9.86%
|
19.8
|
24.66%
|
2.25
|
|
LYB
|
5.58%
|
44%
|
8.45%
|
8.55
|
-19.88%
|
2.14
|
|
RCL
|
3.93%
|
32%
|
22.87%
|
12.58
|
9.45%
|
1.14
|
|
RHI
|
2.71%
|
35%
|
13.56%
|
15.26
|
39.56%
|
2.59
|
|
SNA
|
2.89%
|
35%
|
15.3%
|
12.72
|
4.55%
|
1.91
|
|
UNP
|
2.39%
|
46%
|
14.17%
|
21.87
|
5.8%
|
2.03
|
NOTE: THIS IS NOT A RECOMMENDATION TO BUY ANY OF THESE. THIS IS WHAT I AM CONSIDERING. NOT YOU.. DO YOUR OWN RESEARCH FOR GOD'S SAKE.
No comments:
Post a Comment
Please leave a comment. Just be respectful of each other. We're all here for the same reasons.... Thanks!