Continuing on that vein, I am in the process of building a "permanent portfolio" of the following 18 stocks:
01. C
02. DIS
03. GE
04. HWP
05. JNJ
06. MMM
07. MO
08. MRK
09. PG
10. WMT
11. ABT
12. AUD
13. SYY
14. SYK
15. MCD
16. DBD
17. PAYX
18. TROW
Almost all of these have increased their dividends for the last 10 years or more (exception : #14, which started paying dividends about 7 years ago, and is on track to making the grade). Why do I focus so much on dividends even if I don't want the cash payments right now and even if the account is taxable? Simple -- I don't believe that stock-price appreciation is a given. Some would call me old-fashioned, I'm sure!
Note that not all of them are undervalued right now. And at this moment, I will be comfortable buying only a few of them -- 2, 6, 7, 11, 13, 16. And I think a few of them are more than fully valued right now -- 3, 4, 10, 17. But I am prepared to wait and wait and wait for the tide to turn the other way. |
