Hello, i would like to share with the reader my watch list.
(1) Value play
After IBM announced to raise quarterly dividend by 18%, on paper its dividend yield is 3% at the time of writing. Unlike other dividend growth investors, I don’t conduct a comprehensive analysis when it comes to selecting a stock. IBM now meets the following Chowder rule
“If stock has a dividend yield greater than 3%, its 5-year dividend growth rate plus its dividend yield must be greater than 12%.”
In addition, payout ratio will be still under 50% if it can at least maintain the current level of EPS. Before the price goes up, I would like to add IBM to my portfolio.
(2) High Yield
I am ambivalent.about PSEC. It has paid me hefty monthly dividend for the last couple of years, although my PSEC position is around -22% in value. Specifically, I have 1,200 shares of PSEC and they pay me about $100 gross dividend every month. If I dump PSEC, I need to add another monthly paying high yield stock or ETF.
PFF: Monthly dividend, yield is 6.06% at the time of writing. Morning star rating: two, expense ratio is 0.47%
SDIV: Monthly dividend, yield is 6.05% at the time of writing. Morning star rating: two, expense ratio is 0.58%
MDIV: Monthly dividend, yield is 6.11% at the time of writing. Morning star rating: n/a, expense ratio is 0.67%
(3) Quality play
I really want to add MMM to my portfolio, but its PE now exceeds 20 and the current yield is 2.6% at the time of writing. I have been keeping my eyes on MMM and would like to buy at dip. Here’s MMM analysis by Dividend Growth Investor
How do you think?
Full disclosure: Long PSEC