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. . . A little stingy with the "likes'? Yeah, me too. . . . Wonky (adj.): askew, awry, unsteady, off-kilter. Like gadgets or stock markets. Techwonk (me): someone who likes wonky stuff. . . . ..................and a fan of nerd-boy.net....................... . .
  • What To Buy Now - Semi-Regular Update 0 comments
    May 7, 2013 5:12 PM | about stocks: DIA

    June 2014

    Growth at a reasonable price

    We find that most of our stock picks are swing trades, but most of our followers are longer-term investors. So when blogging, we try to emphasize stocks of interest to readers, not necessarily those we are trading.

    However two companies we have traded repeatedly are attractively priced at the moment. Readers looking for quality tech stocks might consider these: $ NDAQ and $ DTLK.

    We would be comfortable holding NDAQ several years. DTLK is a contractor and earnings are highly variable, so that one should be re-evaluated more often. Neither pays a dividend. Both are liquid and easy to trade, with narrow spreads.

    We are recommending that because the near-term effects of Obamacare are unknown, investors should be cautious in Quarter 4 with stocks that may be vulnerable to discretionary cash shortages. These include $ RCII, $ CRMT, $ MNST, and $ NKE. Email us if you have questions.

    We will add to this lists periodically.

    -----------------------

    May 2013

    Stocks you didn't know pay a dividend

    The old reliable consumer staples stocks are headed toward multiples that look like tech stocks. SJM at 22x earnings? really? for a company that makes grape jelly?

    A 2% dividend is great, don't get me wrong, but not at the risk of a 10% cut in share value. I admire the blue-chip dividend reinvestors, but it's not the strategy for me.

    Now, let me say just in passing that I'm a trader; I look at lots and lots of stocks every day. Most of them I don't buy or I'll hold only short-term.

    But if you're not a trader, and you're puzzled about where to find a good yield, I hear you.

    So I'm starting a little post for stocks I've found that might interest you.

    Please be sure you do your research on these. I'll screen to weed out the obvious problems -- overvaluation, high payout ratio, lack of a marketable product -- but you'll still have to do your analysis on financial strength, forward growth prospects and management team.

    -------------

    Unless otherwise noted, these are showing a 2% forward dividend (market average), p/e below 18, and forward growth rate is at least 8%. Metrics are subject to change so please recheck them when you research the financial info.

    STT - State Street. Investment banking firm that offers the SPDRs etfs based on Standard and Poors indexes like the S&P 500 and S&P sectors.

    HMN - Horace Mann. Insurer than specializes in coverage for teachers.

    SWK - Stanley Tools. Sells power tools to both construction and retail markets; also produces consumer appliances. Excellent dividend history.

    HMC - Honda Motors. Japanese auto manufacturer. Dividend was cancelled 2008 but recently resumed.

    Previously mentioned in my StockTalks but trading above 18 P/E at present: WDFC, BLK, MLHR. The insurers ACE and AFL have solid dividend histories and P/Es below 12 but growth is expected to be flat; therefore these also might be considered better buys on market pullbacks.

    ------------------------

    More things to look for:

    Dividend history: Be sure to check the payout ratio (under 50% is good, under 30% is better), as well as number of years of dividend payment, consistency of dividend amount, rate of dividend increases, whether dividend ceases during bear markets, etc.

    SA Member "Dividend Yield" has lists of Dividend Achievers on his personal website. These are companies with better than average consistency in dividend payment.

    SA Member "Chowder" has a Dividend Growth Investing portfolio on his personal website. If you plan to dividend-reinvest, it is worth loooking at. This is not a model portfolio, he is tracking actual investments.

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

    Stocks: DIA
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