Am I in the market and if so how do I invest?
Answer: Yes
How do I invest?
- Regularly ... dollar cost averaging
- Weekly ... what I formerly was paying towards our mortgage
- Diversified: By industry, by companies within industry, by country. I like these sectors: energy (eg. XOM), pharma (PFE), food (GIS), major diversified industrials (MMM), Technology (IBM), Soft drinks (KO),
- Large cap
- PE less than 20
- Dividend yield greater than 2%
- Payout ratio less than 50%
- I also invest via ETFs: Examples: PEY, DLN, BND, PFF, and AGG
Currently we are buying Novartis. Here's a helpful "Fool" article on NVS: Will Novartis Help You Retire Rich?. I buy in multiples of 5 shares. Currently we have 25.
How Novartis meets my criteria:
- Large cap of $ 166 billion
- PE ratio of 17.72
- Dividend yield of 2.4%
- Payout ration of less than 50%
- The analysts' estimates for 2014 are better than 2013 (see chart below)
- I don't currently own it (except for the 25 shares)
- I will buy up to 100 shares and stop .... and move on
5 Dow stocks I like: Five Stocks Handled the Heavy Lifting
ReplyDeleteThis is interesting: "While the metrics behind the Dow and S&P 500 are different, Mr. Farmer said there is a 98% correlation between the two indexes throughout their history, underscoring how they both tend to move in tandem despite how they're calculated."
A Dow stock I do not like: Hewlett-Packard HPQ is the lone laggard; the stock has fallen 20% since March 2009.
ReplyDelete