Quote:
Originally Posted by Rain Man
In my current philosophy, I struggle with recommending stocks, because my system of picking is laughable. In terms of recommending, do I talk up stocks that have taken a beating and should turn around, or stocks that are making a run and may be running out of steam? I never know.
That said, here are a few that I like, in no particular order:
TTWO - You know them as the makers of Grand Theft Auto. They don't pay a dividend and I bought them before my dividend strategy was embraced. But wow - this company would've made me affluent if I'd just kept my original holdings and not sold any off. It's quintupled in the last five years.
CODI - Holding company for a bunch of products I've never heard of. The stock price never moves, but it pays an 8%+ dividend. In the current bull market that's not a winner, but in the long run it is.
CVGW - Avocado grower. Pays a 1.3% dividend, and it just always goes up for me.
SEP - Natural gas pipeline company. It's down over the past couple of years, but it pays almost a 7 percent dividend and I keep thinking it'll turn around. I got a good runup three or four years ago.
PSX - I've read that Phillips 66 is more of a refiner than a producer, so they're less volatile to oil prices. Pays a 2.8% dividend.
RCL or CUK - Lots of baby boomers retiring with money, so I like cruise lines, and they countercycle with oil prices. RCL pays a 1.9% dividend and CUK pays 2.8%
MPW - REIT that leases medical office space. Pays a 7.1% dividend. Kind of like CODI above, in that the stock price doesn't move but it returns more than inflation.
GOOG - Probably everyone should have some Google at this point.
NDSN - As near as I can tell, they make nozzles and things for spraying stuff in industrial use. (Shrug.) 0.8% dividend, but it's done well for me. You may have missed the boat on it since it jumped 17 percent yesterday.
VZN - Pays a 4.5% dividend. I've muddled along with this stock but think it's a long-term gainer. Just a hunch.
SSW - I've lost my shirt on this ocean freighter company, with the stock down 40 percent since I bought it. But come on - it's profitable and it pays an 8.5% dividend. I've been buying it the whole way down until I reached a limit on how much I'll put into any stock. If it comes back, it'll produce some big gains and I don't see why it's down so much. I kind of want to buy more.
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Okay, let me see how my recommendations did.
TTWO - Up 4.2% (0 in dividends)
CODI - Down 7.8% (+roughly 3% in dividends)
CVGW - Up 24.6% (+ roughly 0.5% in dividends)
SEP - Down 24.1% (+ roughly 3% in dividends)
PSX - Up 20.4% (+ roughly 0.1% in dividends)
RCL - Down 15.1% (+ roughly 0.8% in dividends)
CUK - Up 2.1% (+ roughly 1% in dividends)
MPW - Down 6.9% (+ roughly 3% in dividends)
GOOG - Up 0.2% (0 in dividends)
NDSN - Down 6.8% (+ roughly 0.3% in dividends)
VZN - Down 9.3% (+ roughly 2% in dividends)
SSW - Up 46.7% (+ roughly 4% in dividends)
That averages to a 3.8 percent return.
The Dow is up 2.1% in that time + 1.2% or so in dividends = 3.3%
The NASDAQ is up 7.7% in that time + 0.4% or so in dividends = 8.1%
The S&P 500 is up 3.1% in that time + 0.9% or so = 4.0%
Well, I beat the Dow, I guess, thanks to 3 hot stocks. In my defense, I warned that NDSN might be too late to enter, and that VZ (not VZN) was more of a long-term stock. If you take out NDSN from the mix, I'm at 4.8%
The Nasdaq has been killing me for this past year. I've got a mix of stocks, and the non-NASDAQ ones are lagging NASDAQ.