30 Large Caps Stock Portfolio For 2014

by: Omar Farooq

I'd like to expand on my first article by presenting my 30 must-have stocks for a well-balanced 2014 portfolio. While it shares some of the blue chip stocks listed in the Dow Jones, I'm seeking more diversity in my selection of 30 stocks.

I'm still holding on to the 10 value-oriented stocks I mentioned in my first article (CVX, DE, F, GE, INTC, JPM, MDT, MSFT, T, and TGT) and I'm expanding into some additional areas where I see growth at a reasonable value (with some notable exceptions).

Criteria for my picks are:

- Profitable. I'm bad at predicting turnaround stories than I am at finding areas of continued (or accelerating) growth. A year ago, I thought Best Buy was doomed and JC Penny would make a turnaround. I'm glad I kept those thoughts on my watch list. Profitable companies are also able to sustain my second criteria.

- Dividend. Without a dividend, I would have to sell capital to realize any gains. I plan on re-investing dividends at this stage of investing to increase my growth rate. I will not be using a DRIP-plan in order to maintain maximum flexibility in allocating my capital. Compared to the Dow Jones, my portfolio of 30 stocks averages a dividend yield of 2.61% vs. 2.08%.

- Diverse. As I stated in my first article, I actually enjoy taking the time to research my stock picks. I'm hoping to beat the market with my research and I think my portfolio of 30 stocks adds more diversity (and less risk) than my initial selection of 10 stocks.

The role of valuation:

In my first article, I chose stocks where the multiple of the price to earnings ratio and the price to book ratio was equal to or less than 50. In this expanded selection, I've added stocks where I favor growth over value. Some of the sectors I've chosen to gain exposure to are expensive in today's market.

If my choice exceeds my valuation guidelines, I also take a look at my choice's Price to Earnings Growth ratio to determine how growth is being valued by the market. I have aimed to pick a stock with a lower PEG ratio compared to its competitors in its sector.

Overall, I think the portfolio remains reasonably valued with an average P/E ratio of 18.9 and a P/B ratio of 2.99 while offering an average dividend of 2.61%. Please note, I took my numbers from Yahoo! Finance and they don't necessarily mesh up with YCharts perfectly. I've included the charts to show trends P/E ratios over the past five years.

Aflac (NYSE:AFL): Supplemental insurance.

Why: Exposure to the insurance sector. Insurance companies thrive when the profits they earn from premiums do well in the market. Additionally, Aflac has substantial exposure to the Japanese economy (insuring 1 of 4 Japanese households). I think the Japanese economy will continue to improve in the mid-term due to the Bank of Japan's loose monetary policy finally combating years of deflation. Aflac has excellent valuation with a low P/E ratio and a low P/B ratio, while still offering a decent dividend. I think as employment goes up, so will the need for supplemental insurance.

Profit Margin: 12.63%

Price to earnings: 10.20

AFL PE Ratio (<a href=

AFL PE Ratio (TTM) data by YCharts

Price to Book: 2.12

P/E x P/B = 21.62

PEG Ratio: 1.195

Dividend Yield: 2.22%

Carnival Cruise Line (NYSE:CCL): Recreation.

Why: Demographics and improving economy. As more baby boomers retire with disposable income, I see them going on more cruises. I think prices were suppressed due to a string of bad news with their cruise ships; however, I think the effect has been temporary. Although Carnival has a steep Price to Earnings ratio, it's offset by a low Price to Book ratio and a good dividend. I also think that sub $110/barrel oil will help keep costs down in the near to mid term.

Profit Margin: 6.98%

Price to earnings: 28.90

CCL PE Ratio (<a href=

CCL PE Ratio (TTM) data by YCharts

Price to Book: 1.27

P/E x P/B = 36.70

PEG Ratio: 2.8

Dividend Yield: 2.49%

Chesapeake Energy Corp. (NYSE:CHK): Oil & Gas.

Why: As America's second-largest natural gas producer I have wanted to invest in Chesapeake for a while. They finally showed a profit last quarter and I think natural gas prices will rebound once LNG exports begin. I also see additional economic activity from US industrial companies as a positive for this company.

Profit Margin: 6.91%

Price to earnings: 19.97

CHK PE Ratio (<a href=

CHK PE Ratio (TTM) data by YCharts

Price to Book: 1.33

P/E x P/B = 26.56

Dividend Yield: 1.29%

PEG Ratio: 0.0526

Cisco (NASDAQ:CSCO): Network infrastructure.

Why: Great value for a blue-chip stock with a greater than 3% dividend. I understand their margins are threatened by generic "white-box" routers with software-defined networks; however, with a PEG ratio of 0.6 I believe the market has overcorrected for the slowdown in earnings growth.

Profit Margin: 20.25%

Price to earnings: 12.20

CSCO PE Ratio (<a href=

CSCO PE Ratio (TTM) data by YCharts

Price to Book: 2.02

P/E x P/B = 24.644

PEG Ratio: 0.6514

Dividend Yield: 3.03%


Why: Efficient logistics for an improving economy with transportation hubs located along major population centers along the east coast. Also, the rail sector is benefiting from shortages in oil pipeline infrastructure. The rail sector in general has high PEG ratios, so CSX will need to increase its earnings growth to justify 2013's gains.

Profit Margin: 15.95%

Price to earnings: 15.48

CSX PE Ratio (<a href=

CSX PE Ratio (TTM) data by YCharts

Price to Book: 2.92

P/E x P/B = 21.62

PEG ratio: 4.066

Dividend Yield: 2.22%

Chevron Corp. (NYSE:CVX): Fully integrated oil and chemical company.

Why: Oil energy forms the foundation of economic growth and Chevron offers the best value in American fully integrated oil companies with a healthy 3.2% dividend. My only concern with Chevron is its extremely high PEG ratio this year (Chevron has a PEG ratio over 29 while Exxon and BP's PEG ratios are both well below 1). It appears that the market has already priced in Chevron increasing its earnings growth.

Profit Margin: 11.09%

Price to earnings: 10.22

CVX PE Ratio (<a href=

CVX PE Ratio (TTM) data by YCharts

Price to Book: 1.65

P/E x P/B = 16.86

PEG Ratio: 29.48

Dividend Yield: 3.2%

Delta (NYSE:DAL): Airline.

Why: Delta is one of three companies that control 70% of the US air business and is the only airline stock of the bunch that offers a dividend. I also think oil prices will remain below $110 a barrel in the US this year (supply will outstrip improving demand). However, unlike United, Delta is not planning on purchasing super fuel efficient 787s - opting instead to save costs upfront on cheaper airplanes, so lower fuel costs should have less of an impact on Delta's bottom line.

Profit Margin: 5.54%

Price to earnings: 11.37

DAL PE Ratio (<a href=

DAL PE Ratio (TTM) data by YCharts

Price to Book: 168.88

P/E x P/B = 1920. This is due to a very low book value for Delta. I will use the PEG Ratio to determine value instead.

PEG ratio: 0.267, which is lower than United (0.357) and Southwest (0.64).

Dividend Yield: 0.87%

DuPont (E.I.) De Nemours (DD): Chemical conglomerate.

Why: I like conglomerate stocks because they're so diversified that I think of them as an ETF. I think DuPont's Pioneer seeds division will be crucial in coming up with hybrid seeds for the developing world that can resist the effects of climate change. I'm willing to pay a slight premium for DuPont due to its exposure to agriculture through its Pioneer seeds brand and near-to-medium term benefit to its chemical business from lower oil prices in the US. It has a much higher profit margin (13% vs. 5%) and a lower PEG ratio (2.14 vs. 2.79) than Dow Chemical.

Profit Margin: 13.47%

Price to earnings: 12.70

DD PE Ratio (<a href=

DD PE Ratio (TTM) data by YCharts

Price to Book: 4.40

P/E x P/B = 55.88

PEG: 0.21

Dividend Yield: 2.77%

John Deere (NYSE:DE): Heavy machines.

Why: I don't see the global human population leveling off for at least a couple of decades. I think John Deere is well positioned to take advantage of the trend of needing equipment to produce more food efficiently around the world. Likewise, I see demand for housing to increase, which should increase demand for efficient forestry equipment. Finally, John Deere is priced attractively, despite having a high Price to Book ratio. I also like how DE has managed to increase dividends since initiating them in 1987.

Profit Margin: 9.36%

Price to earnings: 10.05

DE PE Ratio (<a href=

DE PE Ratio (TTM) data by YCharts

Price to Book: 3.31

P/E x P/B = 33.27

PEG Ratio: 0.53

Dividend Yield: 2.23%

Ford (NYSE:F): Automobile.

Why: I don't think the comeback for automakers is over. There's lots of room for growth and I like the innovative cars that they're working on. GM's value is slightly better due to a lower Price to Book Ratio; however, I think that Ford's dividend makes up for that. I also think the Ford Ka subcompact for emerging products will provide a springboard for Ford to expand in those markets.

Profit Margin: 3.91%

Price to earnings: 10.89

F PE Ratio (<a href=

F PE Ratio (TTM) data by YCharts

Price to Book: 2.94

P/E x P/B = 32.02

PEG Ratio: 0.0177

Dividend Yield: 2.59%

Freeport-McMoRan Copper (NYSE:FCX): Basic materials - Integrated Mining.

Why: Freeport has a good valuation (thanks to an oversupply of copper for the time being) and a decent 3.3% dividend. Also I think global demographic trends show an investment in copper is a good idea. As the world's middle class continues to grow, so will demand for housing. More housing will lead to an increase in the demand for copper wiring. I also like Freeport's decision to diversify into oil. Finally, if gold prices recover as some contrarians claim it will, then I like Freeport's exposure to that resource as well.

Profit Margin: 13.78%

Price to earnings: 13.79

FCX PE Ratio (<a href=

FCX PE Ratio (TTM) data by YCharts

Price to Book: 1.92

P/E x P/B = 26.48

PEG Ratio: 1.748

Dividend Yield: 3.31%

Foot Locker (NYSE:FL): Athletic apparel.

Why: There are a couple of trends in progress that I think will lead to rapid growth in athletic apparel. Demand should increase from growing levels of disposable incomes. Also health awareness increases with income. While I'd like to have exposure to an athletic apparel manufacturer, their valuations are higher than what I'd like and their dividend levels are lower than what I'd like in a long-term investment.

Profit Margin: 6.41%

Price to earnings: 15.24

FL PE Ratio (<a href=

FL PE Ratio (TTM) data by YCharts

Price to Book: 2.45

P/E x P/B = 37.34

PEG Ratio: 1.346

Dividend Yield: 1.93%

General Electric (NYSE:GE): Industrial conglomerate.

Why: Similar reasons for DuPont - I like conglomerates. I also like GE's focus on high tech industrial products that efficiently utilize resources. More people on earth + limited resources = demand for higher efficiency. Unfortunately, the market sees industrial conglomerates the same way and valuations in this sector are getting stretched - especially considering that every major company in this sector has a PEG ratio well over 1. Compared to its peers United Technologies, MMM, and Honeywell; GE offers the best combination of valuation and dividends. I see demand for Boeing jets to continue and I like that they will be using GE engines. Finally, I'm happy to see GE spin off its financial businesses and return to focusing on industry.

Profit Margin: 9.57%

Price to earnings: 21.08

GE PE Ratio (<a href=

GE PE Ratio (TTM) data by YCharts

Price to Book: 2.30

P/E x P/B = 48.48

PEG Ratio: 3.754

Dividend Yield: 3.14%

Corning (NYSE:GLW): Material science.

Why: I mainly chose Corning because it offers exposure to a very profitable high tech company at a great valuation with a decent dividend. I think fears of Gorilla Glass sales falling away due to Sapphire glass are greatly exaggerated. However, Corning's high PEG ratio suggests the company needs to accelerate earnings growth this year to see more price appreciation.

Profit Margin: 22.31%

Price to earnings: 14.76

GLW PE Ratio (<a href=

GLW PE Ratio (TTM) data by YCharts

Price to Book: 1.18

P/E x P/B = 17.42

PEG Ratio: 3.097

Dividend Yield: 2.24%

Home Depot (NYSE:HD): Home Improvement.

Why: I want exposure to the real estate market in my portfolio. I don't like the volatility of mREITs and I think an improving economy will accelerate the trend of people upgrading their housing. I'm willing to buy at a stretched valuation in order to gain exposure to the home improvement sector, which should continue to recover. Compared to its major competitor (Lowes), Home Depot has a higher profitability (6.8% vs. 4.3%) and lower Price to Earnings Growth ratio (0.71 vs. 0.94).

Profit Margin: 6.8%

Price to earnings: 22.31

HD PE Ratio (<a href=

HD PE Ratio (TTM) data by YCharts

Price to Book: 8.12

P/E x P/B = 181.16

PEG Ratio: 0.7131

Dividend Yield: 1.89%

Intel (NASDAQ:INTC): Semiconductors.

Why: Good valuation + 3.5% dividend. I'm also excited to see how Intel's (long awaited) mobile products will pan out this year. I'm writing this article on a Haswell-powered ultrabook and I'm super impressed with the battery life. Intel offers a better valuation and much better dividend than Qualcomm, or Nvidia (although I think they're excellent companies in their own right). I think the market is starting to see Intel's turnaround story as its PEG ratio has increased over 1 over the past month.

Profit Margin: 18.08%

Price to earnings: 14.04

INTC PE Ratio (<a href=

INTC PE Ratio (TTM) data by YCharts

Price to Book: 2.32

P/E x P/B = 32.57

PEG Ratio: 1.145

Dividend Yield: 3.47%

International Paper (NYSE:IP): Basic Materials - paper.

Why: While I see continued declines in paper usage by consumers (e-statements) I don't see it disappearing in official documents (government use). Also, thanks to the trend of people shopping online and shipping things home, I see an increase in demand for cardboard boxes. International Paper slightly breaks my valuation rules because of its high price to book ratio. However, IP offers a decent dividend and has a low PEG ratio allowing for further stock price appreciation if earnings can continue to grow.

Profit Margin: 4.13%

Price to earnings: 18.34

IP PE Ratio (<a href=

IP PE Ratio (TTM) data by YCharts

Price to Book: 3.02

P/E x P/B = 55.39

PEG Ratio: 0.4782

Dividend Yield: 2.86%

JPMorgan Chase (NYSE:JPM): Major bank.

Why: Every serious stock portfolio should include exposure to the financial industry as they provide the capital that makes investment and economic growth possible. I also see financial stocks doing well as interest rates increase. I chose JPMorgan because I think it offers the best combination of good valuation and dividend in its sector.

Profit Margin: 19.04%

Price to earnings: 13.17

JPM PE Ratio (<a href=

JPM PE Ratio (TTM) data by YCharts

Price to Book: 1.11

P/E x P/B = 19.34

PEG Ratio: 0.2267

Dividend Yield: 2.60%

Kellogg (NYSE:K): Non-cyclical - food.

Why: Good dividend and a strong brand. I also think their focus on healthy eating habits will pay off with increasing numbers of better educated consumers. Kellogg's main competitor General Mills is more attractively valued (price to book ratio is much lower at 4.72) and has a slightly higher dividend yield at 3.05%. However, Kellogg's PEG ratio is half of General Mills' (2.519 vs. 4.396), so I feel that Kellogg is better priced for growth.

Profit Margin: 6.44%

Price to earnings: 23.35

K PE Ratio (<a href=

K PE Ratio (TTM) data by YCharts

Price to Book: 7.82

P/E x P/B = 182.6

PEG Ratio: 2.519

Dividend Yield: 3.01%

Medtronic (NYSE:MDT): Medical equipment.

Why: Demographic shifts towards an aging population requires innovative technology to meet the increasing demands of extending quality of life for more people than ever before. It's hard to find a high-tech company (especially in the medical field) that has a good value and offers a dividend, but Medtronic offers exposure to the field of medical technology while meeting my requirements.

Profit Margin: 22.74%

Price to earnings: 15.34

MDT PE Ratio (<a href=

MDT PE Ratio (TTM) data by YCharts

Price to Book: 3.06

P/E x P/B = 46.94

PEG Ratio: 1.121

Dividend Yield: 1.95%

Microsoft (NASDAQ:MSFT): Software.

Why: Maybe I should get my head examined, but I actually like Windows 8.1. I think Microsoft's business products are poised to take advantage of a global economic recovery. I like the 3% dividend and I'm interested to see what a new CEO plans to do with Microsoft's $68 Billion cash pile. Although Microsoft is slightly overvalued for a value stock, it still offers a better value than its main competitor, Oracle and offers a much higher dividend. Finally, I think the unified system available through Xbox One will offer Microsoft another revenue foothold through the consumer's entertainment budget.

Profit Margin: 28.17%

Price to earnings: 14.01

MSFT PE Ratio (<a href=

MSFT PE Ratio (TTM) data by YCharts

Price to Book: 3.81

P/E x P/B = 53.38

PEG Ratio: 0.3088

Dividend Yield: 3.00%

NextEra Energy (NYSE:NEE): Renewable energy utility.

Why: Due to growing demand for fossil fuels from emerging economies, I think we are in the early stages of a shift towards increasing use of renewable energy. I think NextEra is the best valued way to gain exposure to renewable energy while collecting a healthy dividend. I think demand from emerging markets will keep oil prices from getting too low to reduce development in renewable energy. NextEra also incorporates nuclear power and I think nuclear energy offers one of the best ways to generate power (lowest cost-per watt, and no greenhouse gas emissions). Physics for Future US Presidents is a must read for understanding the benefits of nuclear energy.

Profit Margin: 13.51%

Price to earnings: 18.08

NEE PE Ratio (<a href=

NEE PE Ratio (TTM) data by YCharts

Price to Book: 2.10

P/E x P/B = 37.97

PEG Ratio: 0.3182

Dividend Yield: 3.08%

Nucor (NYSE:NUE): Basic materials - steel.

Why: Exposure to the steel industry and a respectable 2.77% dividend. I think developed economies will need to replace aging infrastructure (requiring lots of steel) and will increasingly do so as tax revenues increase from an improving economy. I think that demand for oil-pipelines in North America will surge in the near to mid term as the fracking revolution gains momentum. Nucor was a tough stock to add to my portfolio. I'm willing to pay a high price for this stock to gain exposure to the steel industry because of its fundamental role in economic growth. However, I was on the fence on picking Nucor over Steel Dynamics (NASDAQ:STLD), because STLD is better valued. In the end, I opted for the better dividend from Nucor.

Profit Margin: 2.44%

Price to earnings: 37.59

NUE PE Ratio (<a href=

NUE PE Ratio (TTM) data by YCharts

Price to Book: 2.24

P/E x P/B = 84.2

PEG Ratio:

Dividend Yield: 2.77%

Procter & Gamble (NYSE:PG): non-cyclical consumer goods.

Why: Great brands and a nearly 3% dividend. I think this pick will do well if emerging economies can get back on track in 2014. Although Procter and Gamble is expensive, I'm willing to break my rules on valuation to gain exposure to a high quality defensive stock. PG is better valued than its competitors Colgate-Palmolive (NYSE:CL) and Clorox (NYSE:CLX) while also offering a decent dividend. Also, Procter and Gamble has a lower PEG ratio than its competitors.

Profit Margin: 13.62%

Price to earnings: 20.69

PG PE Ratio (<a href=

PG PE Ratio (TTM) data by YCharts

Price to Book: 3.33

P/E x P/B = 68.90

PEG Ratio: 2.064

Dividend Yield: 2.96%

AT&T (NYSE:T): Telecom.

Why: Defensive stock with a great dividend. Plus, AT&T has a higher profit margin than its main competitor, Verizon (5.84% vs. 1.84%) and is not as expensive (P/E of 25.74 vs. 63.98 and a P/B ratio of 2.17 vs. 4.02). AT&T also offers a higher dividend (5.23% vs. 4.31%).

Profit Margin: 5.84%

Price to earnings: 25.74

T PE Ratio (<a href=

T PE Ratio (TTM) data by YCharts

Price to Book: 2.17

P/E x P/B = 55.86

PEG Ratio:0.2878

Dividend Yield: 5.23%

Target (NYSE:TGT): Retail.

Why: I'm a firm believer that the best opportunities lie in crisis. I took the data theft news as an opportunity to increase my exposure to Target. Compared to its competitors in retail, Target offers an attractive Price-to-Earnings valuation and a higher-than average dividend. As anxiety over the economy slowly subsides, I see 2014 as the year of the retail consumer.

Profit Margin: 3.27%

Price to earnings: 16.94

TGT PE Ratio (<a href=

TGT PE Ratio (TTM) data by YCharts

Price to Book: 2.44

P/E x P/B = 41.33

PEG Ratio:

Dividend Yield: 2.72%

Thomson Reuters (NYSE:TRI): Professional information service.

Why: I hate clichés, but information is power - especially in financial markets. I see growth in the information sector because I see a growth in demand for data and technical analysis as automated trading technology continues to advance. The 3.44% dividend doesn't hurt either.

Profit Margin: 7.12%

Price to earnings: 34.13

TRI PE Ratio (<a href=

TRI PE Ratio (TTM) data by YCharts

Price to Book: 1.86

P/E x P/B = 63.48

PEG ratio: 0.2546

Dividend Yield: 3.44%

VF Corp. (NYSE:VFC): Apparel and accessories.

Why: I want exposure to apparel with strong brands. Its valuation or dividend isn't superior to competitors like American Eagle or Abercrombie and Fitch; however I think VF Corp.'s brands are in much better shape. Make no mistake, VFC is an expensive stock; however, it has a lower P/E ratio than Nike (NYSE:NKE) (23.68 vs. 25.09) as well as a lower P/B ratio (4.84 vs. 6.16). Compared to The Gap (NYSE:GPS) VF Corp. is more expensive and has a lower dividend (1.68% vs. 2.05%); however, VF Corp. has a higher profit margin (10.54% vs. 8.12%).

Profit Margin: 10.54%

Price to earnings: 23.68

VFC PE Ratio (<a href=

VFC PE Ratio (TTM) data by YCharts

Price to Book: 4.84

P/E x P/B = 114.61

PEG Ratio: 1.307

Dividend Yield: 1.68%

Whole Foods (WFM): Specialty grocery.

Why: Whole Foods is another growth over valuation stock pick for my portfolio because it is continuing to open new stores in new markets. I'm willing to pay extra to take a chance on that growth. There are definitely cheaper stocks in the grocery sector such as Kroger (NYSE:KR) or Safeway (NYSE:SWY). Whole Foods also has a very low dividend whereas Safeway's is a respectable 2.5%; however, Whole Food's payout ratio remains below 40% allowing room for growth. Whole Foods is my bet on economic growth leading to more consumers willing to pay a premium for healthier food. While Safeway and Kroger (especially once it completes its purchase of Harris Teeter) are offering healthier food options, I don't think they are as focused on health foods to capitalize on this trend as much as Whole Foods will.

Profit Margin: 4.27%

Price to earnings: 39.34

WFM PE Ratio (<a href=

WFM PE Ratio (TTM) data by YCharts

Price to Book: 5.54

P/E x P/B = 217.94

PEG Ratio: 2.303

Dividend Yield: 0.83%

Waste Management (NYSE:WM): Environmental service.

Why: "Going green" isn't just solar panels and wind turbines - it's also about finding ways to extract value from waste. I see this trend continuing to gather strength as the world searches for ways to extract more energy efficiently. I'm willing to pay a premium for the largest environmental service company. Although Waste Management commands a higher valuation than its main competitor Republic Services (NYSE:RSG) (P/B ratio of 3.14 vs. 1.55), Waste Management also has a higher profit margin of 6.66% vs. 5.77%. Waste Management also offers a healthy 3.25% dividend.

Profit Margin: 6.66%

Price to earnings: 22.66

WM PE Ratio (<a href=

WM PE Ratio (TTM) data by YCharts

Price to Book: 3.14

P/E x P/B = 71.15

PEG Ratio:

Dividend Yield: 3.25%


My 30 picks for 2014 are a diverse blend of value and growth large cap stocks that I believe will do well as the world economy continues to improve.

I'd like to see how my picks fare against the 30-stock DOW index this year. I've included a simple Excel chart below with some key stats on my picks as of January 1, 2014. P/E and P/B values at the bottom are averages of my portfolio. I excluded Delta's Price-to-Book value since it's very far off the mean and would throw off the average at the bottom of the chart.

Price Dividend per quarter Yield P/E P/B
AFL 65.96 0.37 2.24% 10.2 2.12
CCL 39.81 0.25 2.51% 28.9 1.27
CHK 26.62 0.09 1.35% 19.97 1.33
CSCO 22 0.17 3.09% 12.2 2.02
CSX 28.25 0.15 2.12% 15.48 2.92
CVX 124.14 1 3.22% 10.22 1.65
DAL 27.7 0.06 0.87% 11.37
DD 63.71 0.45 2.83% 12.7 4.4
DE 90.26 0.51 2.26% 10.05 3.31
F 15.44 0.1 2.59% 10.89 2.94
FCX 37.63 0.31 3.30% 13.79 1.92
FL 40.78 0.2 1.96% 15.24 2.45
GE 27.5 0.22 3.20% 21.08 2.3
GLW 17.77 0.1 2.25% 14.76 1.18
HD 82.02 0.39 1.90% 22.31 8.12
INTC 25.79 0.22 3.41% 14.04 2.32
IP 48.8 0.35 2.87% 18.34 3.02
JPM 58.21 0.38 2.61% 13.17 1.11
K 60.81 0.46 3.03% 23.35 7.82
MDT 57.24 0.28 1.96% 15.34 3.06
MSFT 37.16 0.28 3.01% 14.01 3.81
NEE 84.25 0.66 3.13% 18.08 2.1
NUE 52.73 0.37 2.81% 37.59 2.24
PG 80.54 0.6 2.98% 20.69 3.33
T 34.95 0.46 5.26% 25.74 2.17
TGT 63.18 0.43 2.72% 16.94 2.44
TRI 37.41 0.32 3.42% 34.13 1.86
VFC 62.38 0.2625 1.68% 23.68 4.84
WFM 57.07 0.12 0.84% 39.34 5.54
WM 44.2 0.36 3.26% 22.66 3.14
Average 2.62% 18.88 2.99

I think this portfolio is pretty diversified which should help lower risk while keeping returns reasonable. I like that most of my picks offer a reasonable dividend that will help accelerate growth.

Disclosure: I am long AFL, CCL, CHK, CSX, CVX, DAL, DE, F, FL, GE, GLW, HD, INTC, IP, K, MDT, MSFT, NUE, PG, T, TGT, TRI, WFM, WM, FCX, NEE, VFC, JPM, and CSCO. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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