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Tuesday, June 23, 2015

ASK THE READERS - Should I buy XOM, OHI, WMT?


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 three stocks we have chosen are stocks that are currently 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: 



For each ASK THE READER post, we will select 3-4 current 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 companies listed below.  Tell us why you like the stock that you picked. 

Thanks in advance for your STOCK PICK!
STOCK #1 Exxon Mobil Corp (XOM)
  • Sector: Energy - Oil & Gas
  • Market Cap: 355.7 Billion
  • Dividend Yield: 3.43% 
  • Consecutive years of dividend increase: 32 Years
  • Paying Dividends Since: 1882
  • Payout Ratio: 69.5%
  • P/E Ratio: 12.76


STOCK #2  Omega Healthcare Investors, Inc. (OHI)
  • Sector: Financials - Real Estate
  • Market Cap: 6.46 Billion
  • Dividend Yield: 2.04% 
  • Consecutive years of dividend increase: 5 Years
  • Paying Dividends Since: 1992
  • Payout Ratio: 24.2%
  • P/E Ratio: 22.02


STOCK #3 Wal-Mart Stores, Inc. (WMT)
  • Sector: Services - Retail
  • Market Cap: 233.7 Billion
  • Dividend Yield: 2.65% 
  • Consecutive years of dividend increase: 40 Years
  • Paying Dividends Since: 1973
  • Payout Ratio: 40.3%
  • P/E Ratio: 14.58

**LET US KNOW WHICH STOCK YOU WOULD PICK AND WHY**

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24 comments:

  1. Passive Income PursuitJune 23, 2015 at 10:33 PM

    Quite a diverse group of companies AFFJ. For my own portfolio XOM is probably going to be the next addition barring some craziness in the markets. Im trying to hold off on adding to more REITs because I've been adding some over the last few months so their weight has crept up and I think we could still get better opportunities once the Fed funds rate is raised. WMT an interesting choice as well. The worlds largest retailer is going to continue paying higher dividends and I expect the increases will jump back up to better levels over the next few years as well. For your reader chosen portfolio I think WMT would prob be the best fit if youre looking for sector diversification and they are fairly valued here. Although I think XOM probably represents the best long term value because they are very cheap right now assuming oil prices remain stable or continue to trend higher. Although I dont think anyone would complain about adding any of these 3 excellent companies.

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    1. A Frugal Family's JourneyJune 24, 2015 at 8:39 AM

      Thanks for leaving your well thought out comment. Sounds like a case could probably be made for all 3 and it depends on what each investor has in their portfolio. I would agree with you that for the Ask The Readers portfolio WMT or even OHI is the better choice for the sake of a balanced portfolio. I suppose I should have mentioned that I track these Ask The Readers stocks separately for fun, but the reality is they are still part of our Family's dividend stocks portfolio. With that said, I think I will log your vote with XOM, as it seems you are leaning more towards XOM if all things are considered equal.

      Thanks again for your feedback. AFFJ

      Delete
  2. Dividend HustlerJune 23, 2015 at 10:53 PM

    Hey AFFJ. I like them all. I believe Walmart will be a great fit at this moment for your portfolio. Thank you for sharing and all of them are at good valued for sure. Take care and keep on hustling hard bud. Cheers.

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    1. A Frugal Family's JourneyJune 24, 2015 at 8:42 AM

      Hustler, these three are at the top of my watch list right now and I'd buy all three if I could. :)

      Walmart has been on a dip lately and is looking very attractive at the moment so I would mind averaging down the cost basis for our current holding should the outcome lean to favor WMT.

      Thanks for your vote.
      AFFJ

      Delete
  3. Adam - IWTRSJune 24, 2015 at 1:15 AM

    I think i would go with OHI for your account since your healthcare portfolio weight is fairly low compared to others. Good Luck!

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    1. A Frugal Family's JourneyJune 24, 2015 at 8:46 AM

      Adam, sorry I didn't clarify that although I track my buys from these Ask The Readers posts, the stocks are actually part of our overall portfolio.

      Nevertheless, since I honestly would be happy with any of the three, I'll count your vote for OHI. Thanks.

      AFFJ

      Delete
  4. DivHutJune 24, 2015 at 2:03 AM

    My vote is for OHI first then XOM. I'm not a fan of any retailer for a long term dividend portfolio. Always live to give my opinion ;)

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    1. A Frugal Family's JourneyJune 24, 2015 at 8:51 AM

      Thanks for your opinion...we follow your blog and like your approach to investing. You've been adding health care REITs and Canadian banks so I fully understand you allegiance to OHI. And BTW, you're opinion is valued here. :)

      I'll put you down for OHI. Thanks for voting. AFFJ

      Delete
  5. Captain DividendJune 24, 2015 at 4:06 AM

    All things being equal I'd pick XOM. I just bought some a week ago myself.

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    1. A Frugal Family's JourneyJune 24, 2015 at 8:54 AM

      We also own XOM in our family's dividend stocks portfolio as well. Definitely wouldn't mind adding to our position at current prices.

      Btw, we did come across your Recent Buy and have added it to our Collection of Recent Buys. :)

      Thanks for voting. AFFJ

      Delete
  6. DividendHawkJune 24, 2015 at 5:04 AM

    All good choices, but the Hawk's voice goes for OHI.

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    1. A Frugal Family's JourneyJune 24, 2015 at 9:51 AM

      Thanks for leaving us with your vote Hawk. We don't currently own shares in OHI but wouldn't mind becoming a shareholder should the results favor OHI. AFFJ

      Delete
  7. Roadmap2RetireJune 24, 2015 at 6:13 AM

    I really like OHI from the list (I own it). But you also have to consider the overall portfolio and how your diversification looks. I would buy more if I didnt have a full position myself.

    XOM also looks great.

    Btw, the yield on OHI is 6.1%.

    R2R

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    1. A Frugal Family's JourneyJune 24, 2015 at 9:12 AM

      Thanks for commenting R2R. I'll consider your vote for OHI. Of the three stocks mentioned, OHI is the only one we don't currently own but would welcome the opportunity to become a fellow shareholder should the outcome favor OHI over others.

      BTW, I got the yield for all three stocks from Dividend.com. I just re-checked to make sure and according to dividend.com, it's 2.03% (with financial avg. at: 5.05%). I also check Nasdaq.com just now and the yield at Nasdaq is listed at 2.04%.

      Thanks again for your vote. AFFJ

      Delete
    2. Passive Income PursuitJune 25, 2015 at 11:10 PM

      The OHI dividend for 2Q was prorated into 2 payments to reflect the AVIV merger. If you take the whole quarterly payment you'll like the yield a lot more. One more reason to like OHI and another reason to doubke check all sources. Most financial sites get things like this messed up all the time.

      Delete
  8. AnonymousJune 24, 2015 at 6:16 AM

    Dividend yield for OHI 2.04%.....that's doens't seem right, is it?

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    1. A Frugal Family's JourneyJune 24, 2015 at 9:49 AM

      I actually got the yield for all three stocks on Dividend.com. Since you were not the only one to question it, I figured that I should re-check to make sure. According to dividend.com, it's 2.03% (with financial avg. at: 5.05%). I also check Nasdaq.com and the yield at Nasdaq is listed at 2.04%. Is there another reliable source that you use for the dividend yield?

      AFFJ

      Delete
  9. Div4sonJune 24, 2015 at 6:20 AM

    Wow. This is a tough one. I bought both XOM and WMT recently and OHI is on my short list. If it is my portfolio, I would add more WMT to average down further.
    D4S

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    1. A Frugal Family's JourneyJune 24, 2015 at 9:56 AM

      I agree, all three are attractive at the moment. You can almost through a dart and go with the closest one. Always interested in hearing what others would choose and why.

      I'll put you down for WMT. Thanks for your your pick. AFFJ

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  10. A Frugal Family's JourneyJune 24, 2015 at 10:12 AM

    The current tally is: XOM - 2, OHI - 4, WMT - 2; please keep you're votes coming.

    I plan to initiate a stock purchase sometime before the end of the week. AFFJ

    ReplyDelete
  11. AnonymousJune 24, 2015 at 3:07 PM

    Hi ,
    First time commenter, but long time reader. I think the OHI dividend confusion is because of the pro rated dividend that they gave recently in april, add that to the one before for the actual dividend. Dividend and nasdaq are going by a formula which just blindly looks at the last dividend paid out.
    Hope that helps.
    - DG.

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    1. A Frugal Family's JourneyJune 25, 2015 at 9:14 AM

      Thanks for clarifying DG, it now makes more sense why the yield posted on the two sites are so much lower. Feel free to comment more on our posts. Also, thanks for being a long time reader...hope you have enjoyed the journey so far. :)

      Best wishes. AFFJ

      Delete
  12. Mark - DividendDeveloperJune 25, 2015 at 9:06 AM

    My vote is (1) XOM, (2) WMT, (3) OHI.

    In short, I think WMT presents a great value, but I'm not fond of the 2% dividend increases. OHI is good too, but I think REITs have farther to fall, and that better entry points may show up. I think energy is starting to stabilize, so I don't see much of a problem adding to XOM right now, especially after they raised the dividend, unlike CVX.

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    1. A Frugal Family's JourneyJuly 3, 2015 at 9:08 PM

      We ended up picking up shares in both OHI and XOM. Although we didn't pick up shares in WMT as a result of the Ask The Readers post, we did pick up shares just a few weeks back. All three are great companies and we are happy to say that we are proud shareholders in all three! 😊

      thanks for stopping by and leaving us with your pick. AFFJ

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