BigOlDave

12 Ready-to-Rally Stocks - Barron's

What a disappointing line-up! As I read down the list, I kept gagging until ...oops: there was Wal-Mart (which I own). Went back to the beginning and the retch reflex started all over again.

Now I'm wondering about the wisdom of holding Wal-Mart (WMT). Let's see:

* stoXline's 12-mo target is $71.28 (that's 38%);
* S&P rates it 5/5 stars with ($62.00, yep = 20%) target;
* sales up 6.8% y-o-y;
* unfavorable forex impact likely to reverse if USD weakens;
* 2.3% dividend yield;
* $8 billion cash on books;
* retired $2.8 billion in stock in 7/31/09 qtr;
* cash flow positive $722 million in 7/31/09 qtr; and
* P/E lower than S&P, sector, and industry.

Well, I think my rationale for Wal-Mart is intact. Maybe I'll check out some of the others. Can't get excited about researching anything else on the list except Microsoft (MSFT). To free up funds to buy Microsoft, I don't think I'd sell any of my Wal-Mart.

Dave

When Timing Meets Opportunity: Which Dividend Achievers Are at a 52-Week Low?

Interesting analysis.

I'd shop for good value in the right hand column (worst performers). A couple there are owned or on my watch list already.

Dave

12 Dividend Stocks to Own in This Market

Mark Bern's opening comment is spot on. Particularly in a market that is moving sideways, parking cash in some dividend generators makes more sense than staying in cash ...if (I really mean IFF) there are some fundamentals supporting expectations that the share price will hold or advance.

MB's a wise man. Here are some of my own thoughts, mixed with those of one wiser than both of us:

(1) Be flexible in your investment strategy. Day traders get killed; buy-and-holders die more slowly. Being attuned to different strategies, international economy, and emerging sectors or champions will up your odds of success.
(2) Always shop value, even if it means staying in cash until the watched stock’s price comes back down. Momentum's fine, but can turn on you and leave you with a loss if you find a better opportunity. Did I say “always”? What I meant was ALWAYS SHOP VALUE.
(3) Perhaps this is just item (2) above said better, but picking a good entry point is the key to winning this game. And if you don’t have time to play, leave it to the mutual fund managers.
(4) Cull your herd. You should always have a sense of which of your stocks provide the weakest total return. If the weak one will stay weak or get even weaker, go to cash, pick the best candidate on your watch list and put your money there. King Solomon (see his investment advise in Ecclesiastes 11) told us “If a tree falls … there will it lie.” Zombie stocks rarely come back to life.

Filtered Equity Income Stock Prospects

Excellent article!