When It Comes To Retirement, Bigger Is Better For 'Team Alpha'

 |  Includes: AGNC, BAC, GE, INTC, JNJ, KO, NLY, O, PG, SO, T, WMT, XOM
by: Regarded Solutions

Those of us either in retirement, or nearing it, have plenty of decisions to make for our financial future. One of those decisions is where we can have the most reliable income stream with the lowest amount of risk.

We all realize that there is no such thing as a risk free investment. Not in equities, not in bonds, nor commodities. Couple that with the completely insane, miniscule rates of interest in the fixed income arena, and investors have a conundrum. We need to keep up with inflation, have a solid portfolio of income producing equities, and have a solid shot at having our savings last for a lifetime

Size Does Matter When It Comes To Retirement Investing

We have been suggesting that investors select the largest mega cap, blue chip, dividend paying stocks in the world to support an individuals lifestyle during retirement, while being able to sleep well at night.

Our "Team Alpha" portfolio has given solid returns for about 9 months now, and it consists of some of the largest companies on the planet. Please review this Team Alpha article for the latest results.

Our portfolio now consists of; Exxon Mobil (NYSE:XOM), Johnson & Johnson (NYSE:JNJ), AT&T (NYSE:T), General Electric (NYSE:GE), Annaly Capital (NYSE:NLY), Southern Company (NYSE:SO), Procter & Gamble (NYSE:PG), Intel (NASDAQ:INTC), Realty Income (NYSE:O), Coca-Cola (NYSE:KO), Bank of America (NYSE:BAC), American Capital Agency (NASDAQ:AGNC), Intel and Wal-Mart (NYSE:WMT)

A metric that is often taken for granted is the actual size of the company. When it comes to retirement, I want my money in the largest companies possible that will pay me strong dividends to own their shares, and have a great track record of paying those dividends, as well as increasing them.

With a few exceptions, our portfolio is comprised of those companies that meet those criteria. Let's take a look at two dividend charts:

With just a couple of exceptions, and only 2 stocks not charted, our portfolio consists of eight of the top 100 companies on Earth, and each of those eight pay reliable dividends, as you can see within the charts.

The Metric's Used

We can clearly see the size of each company in this chart:





Mkt Value


$434 B

$41 B

$331 B

$407 B


$147 B

$14 B

$717 B

$213 B


$44 B

$16 B

$193 B

$208 B


$127 B

$4 B

$270 B

$187 B


$85 B

$10 B

$134 B

$185 B


$65 B

$10 B

$113 B

$179 B


$46 B

$9 B

$80 B

$159 B


$54 B

$13 B

$71 B

$138 B


$115 B

$1 B

$2 T

$105 B

Click to enlarge

By breaking each company down from their market value, back to their sales, profits, and assets, we can feel a heck of a lot more comfortable knowing that we own shares in companies that have amazingly strong balance sheets.

These figures are from 2011 (full year) and have been gleaned from all public information and collated in this article from Forbes.

My Opinion

With a time horizon that is shorter rather than longer, and a global economic climate filled with uncertainties, I feel that the most prudent investment direction is one that consists of equities of companies that have enormous assets, outstanding profits, and strong dividends.

Our "Team Alpha" portfolio has produced a return of 24% in roughly 9 months and has weathered the ups and downs of these uncertain times thus far.

While the stocks we hold are not the only ones out there that offer similar attributes, we can feel very comfortable with our portfolio going forward.

Disclosure: I am long XOM, JNJ, GE, T, NLY, O, BAC, KO, INTC, AGNC, WMT, PG, SO.