As I start work in the next few weeks on the sell side, I’m no longer going to be able to trade. However, I am putting together a list of stocks, preferably with dividends, that I hope to create a foundation off which to grow for my future. I’d love some feedback and further suggestions.
I find myself very attracted to the energy sector, as it is (and has been for a few years now), the cheapest sector out there. Maybe it is because of 0bama – who knows. However, I will look to buy some names in the next few weeks. Ideally, I’d love an MLP and a producer. Names that are at the top of my list are ETP (mlp), APC (producer – Cain is actually a fan and pointed it out in one of his posts), and BP (producer). I haven’t done much research into ETP, but some people a lot smarter than I am love it. Regarding APC and BP, they have been hammered with the recent oil sell off. APC is a well run company, and I believe BP is still fighting a negative stigma. BP is DIRT cheap as well, trading at an forward P/E of just over 6. It also pays a 5% dividend. I love other names like COP and many of the refiners also.
I’m also attracted to McDonalds… After spending some time in Thailand, I am excited to see MCD continue to grow and pay some nice dividends. People there love it. Friends tell me it is the same in other parts of Asia. Pink slime is also beloved here in America. Coke (KO) is also in demand in Asia, a lot more than Pepsi is. My gut is telling me not to buy KO at these levels, though.
For diversification and dividend purposes, I am also looking into a healthcare name and some utilities. The best looking healthcare name seems to be Merck (MRK), based off of P/E’s and divvies. I think LLY is a bit too expensive here. BMY looks attractive to me also. Utilities as a sector are also obviously very attractive. The sector is currently at a 52 week high. I think it can go a lot higher for various reasons, primarily because they are still attractive to old man investors by effectively being a more rewarding bond. Anyone have any favorites here?
REITs are also pretty attractive. Retailers such as TGT and COST also look good. Sin stocks like MO, PM, and liquor companies like BF are also favorites. Surprisingly, regional banks have held up really well. They tend to offer solid dividends too, so keep an eye out for some of those. I’m also long F since 11 and change – I think it should be upwards of 14. Fundamentally, the stock has improved drastically and I’m expecting some dividend hikes over the next few years. I’d love to buy a name like T or VZ, but I need a pullback in them before I take a stab.
If anyone has any other companies, I’d love to hear some and why you like them. Specifically in tech names, as I struggle to pick good names in the sector.