It has been a while since I looked at pure stock plays. Here are my best picks for strait stock appreciation.
General Electric (GE)
I have been a long-term holder of GE, and although my initial buy price of $35 is a long way off, I still believe in this stock. To be certain this is not a short-term play, even though some analysts are picking it for just that. Over the next two to three years I expect the stock to regain its old position. Furthermore I would expect to see the dividend grow during that time too.
Google (GOOG)
Google is down about 5% since the topic of leaving China become a hot-button issue. I have long loved Google and all their products (this blog is on Blogger.com, which is owned by Google). The stock price appears prohibitively high as an entry point, but I think you must look past that. A few shares of Google would be a good idea, many analysts are still pegging this as a $700 stock.
Central European Distribution Corp (CEDC)
I have been a long-term holder of CEDC for quite a while now, long enough to remember it at $75 a share. I was so confident in this stock and the company that I added to it when I was down and out on my initial holding. This has paid off well, I am currently up over 40% and have no plans to sell. I expect to see this stock in the $40's by summer and maybe $50 by the end of the year. (currently at about $35 a share).
Caterpillar Inc. (CAT)
Caterpillar is a cyclical company, the recovery of the global economy should benefit them tremendously. This once $85 stock will likely be a ways off from those highs, but I suspect it can blow through $70 this year. (Currently at about $60).
I should add Ford (F) for all the reasons I have listed in the past. Also missing on this list are bank stocks, because I am playing them with preferred stock. I would add HSBC (HBC) and Bank of America (BAC) if I was looking for strait stock appreciation. If you want a play on Nat-Gas look to Chesapeake Energy (CHK). McDonald's Corporation (MCD) could be a play on a slower than anticipated recovery, or a "double-dip",
Tuesday, March 23, 2010
Thursday, March 11, 2010
Dividends
Dividends, dividends, and more dividends
With the continuing uncertainty in the global economy, and thus the stock markets, its been hard to commit to individual stocks. Furthermore, all the analysts say the index's have had their run and you need to find individual winners in 2010.
What's a part-time investor to do?
If you look at some of the stocks with the most stable charts, you may notice they also have nice dividends…. Dividend investing is back, more people are in for the long-haul. More people are looking for steady income streams. More people are content to take a 3% - 4% dividend than to chase after a 20% stock return.
The reason is simple, the banks are paying below 1%, the treasuries are at 0, and corporate bonds don’t feel so safe these days.
Where does this leave income investors, just dividend stocks. Where do people looking to put a little 'skin in play' go to beat the rates at the bank….
A stock like MO has been +4% for the year and relatively stable. The DOW is pretty much even for the year. MCD is a relatively flat +2% for the year, plus the first dividend payment from its nearly 4% yield. Even a stock like GE, which has suffered an enormous beat-down is up 6.5% for the year and has a 2.4% yield. In fact you have to look hard for a stock with a decent yield that has been down this year (oil stocks for example -5% for BP).
Further to this theme, if you are looking for bank stocks (which have been beat-down) then you can explore the preferred share market. I have found some preferred stocks yielding well over 7%. For example Bank of America BML-Q with and 8.65% note. ING bank has IGK which is an 8.5% note. Both BML-Q and IGK are selling below the call price of $25, so in effect the payouts are higher. Be cautious in that the dividends can be suspended. (BML-Q just paid out its dividend last week). If the banks don't do it for you, you could look at Ford's F-A with a 7.5% note. F-A is also trading below its call price of $25.
Whether you get yield from a strait stock play, or you seek bigger yields from the preferred market, you can quickly see these numbers pile up in your favor over the long-term.
With the continuing uncertainty in the global economy, and thus the stock markets, its been hard to commit to individual stocks. Furthermore, all the analysts say the index's have had their run and you need to find individual winners in 2010.
What's a part-time investor to do?
If you look at some of the stocks with the most stable charts, you may notice they also have nice dividends…. Dividend investing is back, more people are in for the long-haul. More people are looking for steady income streams. More people are content to take a 3% - 4% dividend than to chase after a 20% stock return.
The reason is simple, the banks are paying below 1%, the treasuries are at 0, and corporate bonds don’t feel so safe these days.
Where does this leave income investors, just dividend stocks. Where do people looking to put a little 'skin in play' go to beat the rates at the bank….
A stock like MO has been +4% for the year and relatively stable. The DOW is pretty much even for the year. MCD is a relatively flat +2% for the year, plus the first dividend payment from its nearly 4% yield. Even a stock like GE, which has suffered an enormous beat-down is up 6.5% for the year and has a 2.4% yield. In fact you have to look hard for a stock with a decent yield that has been down this year (oil stocks for example -5% for BP).
Further to this theme, if you are looking for bank stocks (which have been beat-down) then you can explore the preferred share market. I have found some preferred stocks yielding well over 7%. For example Bank of America BML-Q with and 8.65% note. ING bank has IGK which is an 8.5% note. Both BML-Q and IGK are selling below the call price of $25, so in effect the payouts are higher. Be cautious in that the dividends can be suspended. (BML-Q just paid out its dividend last week). If the banks don't do it for you, you could look at Ford's F-A with a 7.5% note. F-A is also trading below its call price of $25.
Whether you get yield from a strait stock play, or you seek bigger yields from the preferred market, you can quickly see these numbers pile up in your favor over the long-term.
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