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MyPlanIQ.com is the only web application that offers advanced asset allocation strategies customized to a wide range of retirement and taxable investment plans such as 401(k), IRA and brokerage accounts. The unique key advantages of MyPlanIQ.com are 1. Superior investment strategies with high... More
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  • 5 Stocks The Motley Fool Owns 0 comments
    Oct 12, 2011 2:49 PM | about stocks: QCOM, UPL, FISV, NLY, MO

    Stock pundits are quick to dish out stock recommendations -- but when it comes down to it, most don't even own the stocks they recommend. The Motley Fool recently published a list of 5 stocks that they recommend and own.

    Qualcomm Fast Facts  
    Market Capitalization: $91.9 billion
    Industry: Communications Equipment
    Revenue (NYSE:TTM): $13.8 billion
    Earnings (TTM): $4.1 billion

    Smartphones are everywhere, and there will undoubtedly be many long-term winners in the field. Qualcomm [Nasdaq: QCOM] is ideally positioned to be a leader in this market.

     

     

     

    Ultra Petroleum Fast Facts  
    Market Capitalization: $7.2 billion
    Industry: Oil & Gas
    Revenue (TTM): $964 million
    Earnings (TTM): $331 million

    Ultra Petroleum [NYSE: UPL], a natural gas-focused exploration and production company that makes its living drilling in Wyoming's Green River Basin and Pennsylvania's Marcellus Shale

     

     


    Fiserv Fast Facts  
    Market Capitalization: $8.7 billion
    Industry: Data Processing
    Revenue (TTM): $4.2 billion
    Earnings (TTM): $450 million

    Fiserv [Nasdaq: FISV] performs account and check processing, credit and debit card services, electronic transfers and bill payment, and more.

     

     
    Annaly Capital Fast Facts
    Market Capitalization: $16.0 billion
    Industry: Real Estate Investment Trusts
    Revenue (TTM): $1.9 billion
    Earnings (TTM): $1.7 billion
    Dividend Yield: 15.5%

    Annaly Capital [NYSE: NLY] uses short-term financing to buy longer-term mortgage-backed securities and other debt, largely issued by Fannie Mae and Freddie Mac.

     

     

     

     

    Altria Fast Facts  
    Market Capitalization: $54.5 billion
    Industry: Tobacco
    Revenue (TTM): $16.5 billion
    Earnings (TTM): $3.4 billion

    Altria [NYSE: MO] is the company behind Marlboro cigarettes, Copenhagen and Skoal smokeless tobacco, and quarter-owner of the beer behemoth SAB Miller.

     

     

     

    This is a diversified selection of stocks and it will be interesting to compare this with our ETF benchmark of  a balanced portfolio of Dividend producing ETFs.


    Asset Fund in this portfolio
    REAL ESTATE ICF (iShares Cohen & Steers Realty Majors)
    CASH CASH
    FIXED INCOME TIP (iShares Barclays TIPS Bond)
    Emerging Market VWO (Vanguard Emerging Markets Stock ETF)
    US EQUITY DVY (iShares Dow Jones Select Dividend Index)
    US EQUITY VIG (Vanguard Dividend Appreciation ETF)
    INTERNATIONAL EQUITY IDV (iShares Dow Jones Intl Select Div Idx)
    High Yield Bond HYG (iShares iBoxx $ High Yield Corporate Bd)
    INTERNATIONAL BONDS EMB (iShares JPMorgan USD Emerg Markets Bond)



    Portfolio Performance Comparison
    Portfolio/Fund Name1Yr AR1Yr Sharpe3Yr AR3Yr Sharpe5Yr AR5Yr Sharpe
    Retirement Income ETFs Tactical Asset Allocation Moderate-3%-18%9%74%8%58%
    Retirement Income ETFs Strategic Asset Allocation Moderate-3%-29%11%44%2%7%
    5 Stocks The Motley Fool Owns-9%-38%6%16%1%-1%

    However, the stock selections appear on paper, their performance has not been that attractive. Having good dividends is going to keep you afloat but both the dividend ETF portfolio and some blue chip stocks will likely serve you better than this.
     
    Three Month ChartOne Year ChartThree Year ChartFive Year Chart



    The more detailed analysis and graphs give you a visual view of the volatility.


    This selection of equities had a very strong spike around 2008 and perhaps they will spike again. We will track this selection but this isn't something I would want to own.

     

    Disclosure: MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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