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Monday, November 23, 2015

ASK THE READERS - Should I buy HCP, WMT, KMI, or IBM?


We started this series back in November of 2014 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. 

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. 

The stocks we have chosen this month 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: 



So far, this account hasn't really done too well.  Mainly due to the fall of energy and oil stocks.  But it's OK, we are long term investors and have confidence that the so-called losers here will eventually see a turn around.  We've been investing long enough to know that there are cycles in everything.  Although it may take longer than we may like, we remain confident that many of these will eventually rebound.  Meanwhile, we'll just sit back and collect the dividends. :) 

Please help us get this account in the green by spending 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 - HCP, Inc (HCP)
  • Sector: Financials - Real Estate
  • Market Cap: 16.2 Billion
  • Dividend Yield: 6.46% 
  • Consecutive years of dividend increase: 29 Years
  • Paying Dividends Since: 1990 (25 years)
  • Payout Ratio: 71.5%
  • P/E Ratio: 69
STOCK #2 - Wal-Mart Stores (WMT)
  • Sector: Discount Stores
  • Market Cap: 192.5 Billion
  • Dividend Yield: 3.26% 
  • Consecutive years of dividend increase: 40 Years
  • Paying Dividends Since:  1973 (42 years)
  • Payout Ratio: 43.1%
  • P/E Ratio: 13


STOCK #3 - Kinder Morgan, Inc (KMI)
  • Sector: Energy - Oil & Gas
  • Market Cap: 64.0 Billion
  • Dividend Yield: 8.72% 
  • Consecutive years of dividend increase: 4 Years
  • Paying Dividends Since: 1937 (78 years)
  • Payout Ratio: 309%
  • P/E Ratio: 52
STOCK #4 - International Business Machine (IBM)
  • Sector: Informational Technology Services
  • Market Cap: 134.3 Billion
  • Dividend Yield: 3.75% 
  • Consecutive years of dividend increase: 15 Years
  • Paying Dividends Since: 1916 (99 years)
  • Payout Ratio: 34.9%
  • P/E Ratio: 10

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

Thank you in advance!!


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10 comments:

  1. Adam - IWTRSNovember 23, 2015 at 6:50 AM

    Tough one here... I think I would go with HCP here although I will admit, I dont know as much about it as the others. WMT, KMI, and IBM are all on downward trends and until they break that trend, I find it hard to buy more apart from lowering your break even point.

    -Adam

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  2. Ben at Sure DividendNovember 23, 2015 at 8:13 AM

    WMT. It is the industry leader in discount retail. The company is going through a difficult time, but still maintains a strong competitive advantage. The time to buy is when pessimism abounds (but competitive advantage remains). IBM is in a similar situation, but its future is much more in doubt (at least in my opinion).

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  3. BeSmartRichNovember 23, 2015 at 12:34 PM

    I would pick WMT and IBM as well. Both are great long term plays and are very attractively priced.

    Cheers!

    BSR

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  4. Captain DividendNovember 23, 2015 at 6:47 PM

    Personally I'd go with KMI and that 8% yield personally. The only reason I'm not buying more is I'm pretty full on energy now but I am dripping it along with CVX and XOM. I also like WMT ( i just bought some not too long ago ), they will return to growth once they get online going full swing.

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  5. DivHutNovember 23, 2015 at 11:47 PM

    My vote is for HCP. Though many have bounced back from their recent lows the health REITs still provide good value and high yield these days. I made 4 separate health REIT buys this month alone.

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  6. Dividend ChimpNovember 24, 2015 at 11:33 AM

    I like WMT or HCP. From these I would go WMT, it's trading significantly below it's averages with a dividend yield well above it's historical averages. Rough patch right now but a strong dividend history with a very low payout ratio.

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  7. UnknownNovember 24, 2015 at 2:36 PM

    Buy all of these stocks! I like IBM and WMT the most at this time.

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  8. Div4sonNovember 25, 2015 at 9:37 AM

    HCP or WMT. For me, HCP only based on my portfolio needs.
    D4s

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  9. Dividend for StartersNovember 26, 2015 at 2:09 AM

    All solid picks this month AFFJ! My vote goes to WMT.

    Best of luck, DfS

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  10. A Frugal Family's JourneyNovember 28, 2015 at 10:19 AM

    Thank you all for your votes. As the majority winner, we will be going with Wal-Mart and plan to make our purchase this coming week. We already own Wal-Mart but also agree that it is attractively priced and the long term prospects for this industry leader is great!

    Thanks again. We truly appreciate everyone's input! AFFJ

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