Quote:
Originally Posted by Woody
Other than the stocks you have identified in prior posts as good candidates, I have three that I would like your thought on.
United Technologies (UTX)
10 year price increase 135% (good chart); Dividend increased 291% over last ten years, and good EPS growth rate. Dividend rate 2.65%
Lockhead Martin (LMT)
Like it for the same reasons as UTX, but has even larger increases in price, dividend growth and EPS growth than UTX. Dividend Rate higher than many of the stocks that were discussed at 4.95%. However, this company relies heavily on government contracts. Does that make it too risky?
Travelers Group (TRV)
Insurance play; Has had less of a price increase and dividend increase than either UTX or LMT. Dividend rate 2.77%.
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Woody ---
All good picks....
So here's just "my thoughts".... because you raised the question. UTX and LMT "rely" on government spending (defense spending) and we're trying to wind down Iraq and Afghanistan... and we're in a huge budget crisis... so I might loose a bit of sleep worrying about cuts here. So - remember that I am retired - I don't like to worry and go for a higher dividend payout (which really affects your compounding over time)... and so for me personally - I'd pick other names without the POTENTIAL for downside risk. BUT when you look at their charts -- they're good charts... so maybe that worry is all much ado about nothing. BUT - I always try to tell myself - if there is other stuff to buy that DOES NOT have that component - then why wouldn't I just buy the other stuff and leave these alone? It's only a game I play with myself - but it is the way I think. For INVESTING 102 - I'm trying to just type out some THOUGHTS a guy should ask himself.
TRAVELERS INSURANCE (TRV) - Nice chart - big name - I understand the business.... and would certainly feel comfortable owning this. It would be a "steady eddy" purchase for a portfolio - counter balance to something else I might buy that is a higher paying dividend but with more "risk" (to use one or two names for comparison sake -- JNK - HYG - NLY that all pay big dividends but have higher risk!)... so that's how/why I'd own this. I use Johnson and Johnson (JNJ) and Kraft (KFT) and AT&T (T) for this kind of "balance".