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!!

ASK THE READERS - Should I buy VTR, KMI, or POT?

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 - Ventas, Inc (VTR)

• Sector: Financials - Real Estate
• Market Cap: 18.3 Billion
• Dividend Yield: 5.3% 
• Consecutive years of dividend increase: 5 Years
• Paying Dividends Since: 1999 (16 years)
• Payout Ratio: 207.6%
• P/E Ratio: 44.10

STOCK #2 - Kinder Morgan, Inc (KMI)

• Sector: Energy - Oil & Gas
• Market Cap: 64.0 Billion
• Dividend Yield: 6.98% 
• Consecutive years of dividend increase: 3 Years
• Paying Dividends Since: 1937 (78 years)
• Payout Ratio: 252.55%
• P/E Ratio: 55.15

STOCK #3 - Potash Corp (POT)

• Sector: Materials - Agricultural Chemicals 
• Market Cap: 18.2 Billion
• Dividend Yield: 6.95% 
• Consecutive years of dividend increase: 4 Years
• Paying Dividends Since: 1990 (25 years)
• Payout Ratio: 79.17%
• P/E Ratio: 12.08

The 3 companies we picked this month have three things in common: 1) they all pay great dividends; 2) they are all billion dollar companies; and 3) unfortunately, they all have undesirable payout ratios!!! Of the three, which company do you think has the best long-term prospects?

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

Thank you in advance!!

Recent BLACK MONDAY Purchases!!

As everyone already knows, this past Monday was a pretty wild ride in the market. After historic 1,000-point plunge, Dow dives 588 points at close....the 588 decline was the worst since August of 2011. As a long term investor, we were definitely happy to see the correction we've been long awaiting. Sales were to be had throughout the market and our family went shopping! 

By the time the day was over, we had 7 limit orders execute.  In no particular order, below are the 7 companies that we bought on 8/24/2015:

• Enbridge Inc - 9 shares for $37.17/share
• Union Pacific Corp - 4 shares for $80.00/share
• Occidental Petroleum Corp - 5 shares for $64.08.share
• Kinder Morgan Inc - 12 shares for $29.00/share
• Johnson & Johnson - 4 shares for $90.00/share
• Oneok Partners LP - 12 shares for $28.09/share
• W. P. Carey Inc - 6 shares for $58.00/share.

We ended up spending a total of $2,380.01 on the 7 recent Black Monday buys. Our purchase will net an estimated average yield of 5.5% with our estimated forward dividends increasing by another $132.73, putting our yearly dividends at approximately $3,219/year (excluding our Edwards Jones account) and $3,576/year (including our Edward Jones account).

Of our buys, six out of the seven buys were companies that we had already owned. We did, however manage to pick up shares of W.P. Carey Inc to add yet another dividend paying stock to our family's dividend stocks portfolios (WF and EJ Accounts). Our portfolio now stands at a total of 47 different dividend paying stocks/ETFs and also 4 companies that either don't pay a dividend our has currently suspended their dividends.

Our family's dividend stocks portfolio may be found

by clicking on the link below:

DIVIDEND STOCKS PORTFOLIO

We also maintain an extensive list of stock analysis

that can be access through the link below:

COLLECTION OF STOCK ANALYSES

We also just started a list of Recent Buys by other bloggers

that can be access through the link below:

COLLECTION OF RECENT BUYS

What are your thoughts about my recent purchase?

What are you buying?

Recent Buys - (NYSE: SDRL, VZ, KMI, DE, TIS)

 

WE RECENTLY PURCHASED THE FOLLOWING:

SEADRILL LTD (SDRL)

• Purchased 15 shares of SDRL on 9/11/14 at $32.48
• $60.00 added to annual dividends

VERIZON COMMUNICATIONS INC (VZ)

• Purchased 5 shares of VZ on 9/10/14 at $48.45
• $11.00 added to annual dividends

KINDER MORGAN INC (KMI)

• Purchased 8 shares of KMI on 9/9/14 at $38.50
• $13.76 added to annual dividends

 DEERE & CO (DE)

• Purchased 3 shares of DE on 9/5/14 at $83.00
• $7.20 added to annual dividends

ORCHIDS PAPER PRODUCTS CO (TIS)

• Purchased 10 shares of TIS on 9/5/14 at $26.10
• $14.00 added to annual dividends

Of the recent stocks purchased, only SDRL was a new holding as we already own shares of VZ, KMI, DE, TIS in our family's dividend stock portfolio. 

 

With the recent purchase of SDRL, our family's dividend stocks portfolio now has a total of 26 dividend paying companies. More importantly, the recent purchases added $105.96 to our family's annual dividends which is now estimated to be $1,960.20 a year.

Our family's dividend stocks portfolio may be found by
clicking on the link below: 

Dividend Stocks Portfolio

We also maintain an extensive list of stock analysis

that can be access through the link below: 

Collection of Stock Analyses

HERE IS A QUICK FACT SHEET FOR THE STOCKS WE JUST PURCHASED:

Seadrill LTD (SDRL)

• P/E:
• Payout Ratio: 72%
• Dividend Yield: 11.70%
• Dividend Growth rate (5yr AVG): 18.11% 
• 0 consecutive years of dividend increases
• Last dividend Ex date: 9/4/2014
• Have paid a dividend since: 2010 (4 years)

 

Verizon Communications Inc (VZ)

• P/E: 10.66
• Payout Ratio: 45%
• Dividend Yield: 4.50%
• Dividend Growth rate (5yr AVG): 2.87% 
• 9 consecutive years of dividend increases
• Upcoming dividend Ex date: 10/8/2014
• Have paid a dividend since: 1984 (30 years)

 

Kinder Morgan Inc (KMI)

• P/E: 33
• Payout Ratio: 145%
• Dividend Yield: 4.50%
• Dividend Growth rate (5yr AVG): N/A 
• 2 consecutive years of dividend increases
• Last dividend Ex date: 7/29/2014
• Have paid a dividend since: 2011 (3 years)

Deere & Co (DE)

• P/E: 9
• Payout Ratio: 24%
• Dividend Yield: 2.9%
• Dividend Growth rate (5yr AVG): 14.03% 
• 10 consecutive years of dividend increases
• Upcoming dividend Ex date: 9/26/2014
• Have paid a dividend since: 1937 (77 years)

Orchids Paper Products Co (TIS)

• P/E: 17
• Payout Ratio: 109%
• Dividend Yield: 5.30%
• Dividend Growth rate (5yr AVG): N/A 
• 2 consecutive years of dividend increases
• Last dividend Ex date: 7/31/2014
• Have paid a dividend since: 2011 (3 years)

What are your thoughts about my recent purchase?

What are you buying?