Monday, March 23, 2015



We started this series back in November as a way to add some fun to our buying process. We plan to continue doing these Ask the Reader post once a month (except when funds are limited) and will be maintaining the stocks purchased in a separate portfolio just to see how they perform. 
The four stocks we have chosen each month are stocks that are at the top of our watch list and thus stocks we would be comfortable buying regardless of the outcome.  But we thought it would be fun to get our readers input and see if collectively, we can all beat the market with this interactive portfolio. :) 

Below is a chart below of our ASK THE READER purchases to date: 

So for each ASK THE READER post, we will select four stocks on our watch list that we feel are worth buying.  But to add some fun into our buying process, we have decided to put our faith in our fellow bloggers and readers once a month. 
Please spend a few minutes to vote for ONE stock from the four companies listed below.  Tell us why you like the stock that you picked. 

Thanks in advance for your STOCK PICK!
Image result for alliance resources partners logo
STOCK #1 Alliance Resource Partners (ARLP)
  • Sector: Materials - Metals & Mining
  • Market Cap: 2.5 Billion
  • Dividend Yield: 7.4% 
  • Consecutive years of dividend increase: 12 Years
  • Paying Dividends Since: 1999
  • Payout Ratio: 53%
  • P/E Ratio: 7.16
Image result for bank of nova scotia logo
STOCK #2 Bank of Nova Scotia (BNS)
  • Sector: Finance - Banking & Savings (Canadian)
  • Market Cap: 61.0 Billion
  • Dividend Yield: 4.30% 
  • Consecutive years of dividend increase: 4 Years
  • Paying Dividends Since: 1834 
  • Payout Ratio: 51%
  • P/E Ratio: 11.32

STOCK #3 Phillip Morris (PM)
  • Sector: Consumer Products - Tobacco
  • Market Cap: 122.9 Billion
  • Dividend Yield: 5.0% 
  • Consecutive years of dividend increase: 6 Years
  • Paying Dividends Since: 2008
  • Payout Ratio: 82%
  • P/E Ratio: 16.69
STOCK #4 Exxon Mobil (XOM)
  • Sector: Energy - Oil & Gas
  • Market Cap: 354.6 Billion
  • Dividend Yield: 3.3% 
  • Consecutive years of dividend increase: 32 Years
  • Paying Dividends Since: 1882
  • Payout Ratio: 36%
  • P/E Ratio: 11.13



  1. I just bought BNS for my own portfolio so I like the current value offered here. I think XOM is at a tremendous long term value here because im still bullish on oil prices, and our dependence on it, over the long run. I dont know enough about ARLP so id cross them off the list. PM will do fine in the long run but theyre really being impacted by currency exchange right now because of the strong USD.

    My order for purchase would probably be XOM, BNS, PM. Thats based on the current construction of your ATR portfolio. Although I could probably be convinced to pass on XOM for now because of the exposure to BHP and since I expect oil to be cheap for at least the next 6 months which should give more opportunities to buy XOM.

    1. I like your ranking and justification for BNS over XOM. I'll put down XOM as your pick but understand that BNS is a very close second. :)

      Thanks for stopping by and providing your input. AFFJ

  2. I don't care too much for the energy and tobacco industry so I would have to go with BNS here.

    1. I understand your sentiments, both energy and tobacco is out of favor right now. But I must say that value is best found during these times if you are willing to wait for the rebound.

      I'll put you down for BNS. Thanks for the pick. AFFJ

  3. PM - top of my list for 1 quarter this year based on moat, high dividend yield, reasonable growth, morningstar credit A rating. It is fairly valued based on 5 year dividend yield, dividend yield theory, s&p and morningstar ratings.

    1. PM is high on our list for a reason...sounds like you've found a few of them. The payout ratio is the main thing we are concerned with as well as the competition from e-cigs and legalization of marijuana, but all things considered, we still want to own PM in our family's dividend portfolio. :)

      I'll put you down for PM. Thanks for stopping by. AFFJ

  4. XOM for the win - a dividend aristocrat and champion that is going to get pumped up when Oil gets back to a normal range. You would be buying at near 3 year lows!

    1. We currently own a few shares of XOM that we recently picked up so definitely wouldn't mind adding to that holding. Of the first three comments, it appears XOM has taken the early lead. :)

      Thanks for your pick. AFFJ

  5. Put me down for PM. I like the yield and the fact that the stock is on sale right now.

    1. You got it Dividend Dreams. We've been eyeing PM for awhile and although tobacco stocks seems to have lost its luster, PM still looks fairly attractive right now with that 5% yield!

      Thanks for stopping by and leaving your pick. AFFJ

  6. I'd have to agree with Passive Income Pursuit. It would be a first place tie between XOM and BNS. Since I already own shares of XOM, put me down for BNS. I will be initiating a position in BNS in the next few days and will also be adding to my position in XOM in the coming weeks.

    1. Not bad company...Passive Income Pursuit has made some solid picks in the past. I'll put you down for BNS. Thanks for the pick. AFFJ

  7. AFFJ,

    I'm going to vote PM! Loving the yield, the valuation and the pullback after the ex-date. Just my two cents!


    1. That yield sure looks good...would certainly prefer that the payout ratio was a bit lower though. Either way, with 6 consecutive years of increases, the dividends would appear to be relatively safe to at least remain where it is.

      Thanks for your input Lanny. AFFJ

  8. If I were to buy one of them right now, I will buy PM :)

    1. Your pick is definitely in the majority as it appears that PM is the current leader. Thanks for leaving your pick FFF.


  9. Replies
    1. I'll put you down for PM. But I also understand why you would pick BNS for a Roth given the fact that it is a Canadian company.

      Thanks for the feedback. AFFJ

  10. Thanks to all whom have left their picks...the current tally so far is:

    0 - ARLP; BNS - 2; PM - 5; XOM - 2.

    We will likely make our purchase sometime tomorrow but if you haven't already done so, please continue to leave us with your pick. AFFJ

  11. My pick is BNS, PM, XOM, in that order. I dont know much about ARLP to comment on it.


    1. Thanks R2R. We actually set a limit order on PM. It hasn't reached our target price yet so let's see what happens. Maybe next week.

      Thanks for leaving your picks. AFFJ

  12. BNS and XOM, both are good picks. Low oil does damage to XOM but it takes time, so don't know witch way the stock is heading. But that should not affect too much to long term holding. And BNS stock has also fallen from its highs.

    1. how the he** I always misspell the world which with witch :D

    2. ANHA - we ended up picking PM and have set a limit order to buy shares at $76.00. We do also like BNS and if there are extra funds at the end of the month. We might just have to pick up BNS as well.

      Thanks for the feedback. AFFJ

  13. Thanks to all whom have left their picks...the final tally is:

    0 - ARLP; BNS - 4; PM - 5; XOM - 2.

    We ended up picking PM and set a limit order at $76. BNS is looking real attractive as well though. If we have extra cash at the end of the month and BNS is still under $50, we might just have to pick up a few shares of BNS as well. :) AFFJ