[WSSix]

Well, my 2013 ROTH contribution is in my checking account. As soon as the new year starts and I finalize my selections, I'm going to buy my next round of stocks.

This is what I have and the sectors they are in
OXY (energy)
KO (Consumer beverage)
SO (Utilities- electric)
KMP (Utilities- natural gas)
WFM (Retail- specialty)

These are the new ones I am considering and their sectors
MCD (service- restaurants)
MO (Consumer- Tabacco)
CLX (Consumer- Household)
JNJ (Healthcare)
COST (Retail- specialty)

Since it's a ROTH, I have $5000 I can spend. I'm thinking I should go with five different stocks instead of four. That should diversify my portfolio more hopefully. I'm wondering though, if I add these five stocks listed, will I not be as diversified as I think? I would end up with three Consumer stocks and two retail. I think I will be fine because the three consumer stocks are in three entirely different sub-sectors. The two retails are both listed as specialty but have very different client bases and different products. Is this still ok or are they more closely linked than I think because of their major sector? Anyone have a sector suggestion for me to look into? I'm just looking at names I know and use so I'm limited in my thoughts.

Why these selections:

MCD because of the dividend and the fact that it's McDonalds. It's the same as KO for me.

MO because as Greg has mentioned and I've read elsewhere, MO itself is diversified. I was also looking at PM but they only have cigarettes as their product. MO makes its money elsewhere mainly. The other thing is MO costs less than half of what PM does. MO's dividend is slightly more than half of PM's. So given the same dollar value to spend, I'll own more than double the number of shares as I would with PM. When the dividend pays, it'll pay out more dollar wise than the PM will. I then in turn will buy more shares of MO with the slightly higher dividend payment as well.

CLX has the better dividend than CL or PG. I also like their past long term performance better. Hopefully, it's an good indication of the future too.

JNJ is the same as CLX. Just looking at steady stocks that pay good dividends and are solid companies.

COST is like WFM for me. I like the way they operate their business. Their attitude towards their employees and customers is what I like. I think more companies should follow their lead so I support them. For those that don't know, their cashiers earn enough to live on and are often there for a long time. They only have a 15% markup on anything they sale according to Clarke Howard. They also require their executives to go into the stores occasionally. Sure, that's more symbolic than anything but I think it matters. If you shop there, don't be surprised one day to learn that the person who greeted you or walked up to you and asked you some questions was a higher level executive and not just the store manager.

So those are my possible selections. I'm just trying to maintain my money and make it work for me with dividends. Anyone have any comments or suggestions for me. I'm always willing to listen.

Thanks