WELL I have taken the plunge.
I talked to fidelity and have rolled it over to one of their IRAs (Im familiar with the website and its free if you keep it with them, as well as trades are $7.98 which is the cheapest I have found)
So in 3 business days, I will be able to start pulling my money out of their mutual fund, and buying names.
I have decided to go with 10 picks and start from there.
I did alot of thinking, stuff along the lines of, what does everybody use that will not change during a recession, and certain stuff popped in my head, paper goods, gasoline, medicine, food. So I started looking around the house and when the wife and I go grocery shopping to see what brands go well.
Anyways, Here are my picks and why, please feel free to critique:
- RDS-B Royal Dutch Shell - $82.11 per share, 4.58% div yield, graph: looks up and a little choppy, sector: Basic Materials, Industry: Major Integrated oil Why: I almost always fill up at Shell, Texaco or Valero, Texaco (Chevron) is expensive, and Valero doesnt offer much of a dividend when compared to the others
- KO Coca-Cola - $42.17 per share, 2.89% div yield, graph: looks up and somewhat steady, sector: Consumer Goods, Industry: Beverages - Softdrinks Why: I love the stuff, and given the market share and how much Americans consume softdrinks, I dont see this going anywhere
- UL Unilever - $43.84 per share, 3.4% div yield, graph: looks up and somewhat steady, sector: Consumer Goods, Industry: Food Why: Almost everything in our bathroom is from Unilever, the soap, shampoo, lotion, BUT I am a little worried about having too many consumer goods items
- MO Altria Group - $43.89 per share, 4.74% div yield, graph: looks up and somewhat smooth, sector: Consumer Goods, Industry: TobaccoWhy: I dont smoke, BUT I also have quite a few friends who are hooked, and see so many people puffing away
- NNN National Retail Properties - $36.57 per share, 4.60% div yield, graph: looks up and somewhat steady, sector: Financials Industry: Real Estate Why: I rarely see retail space empty
- PFE Pfizer - $29.47 per share, 3.53% div yield, graph: looks up and somewhat smooth, sector: Healthcare Industry: Drugs Why: Out of the big name pharma companies that I could think of, this one had the highest dividend
- GE General Electric - $26.02 per share, 3.38% div yield, graph: looks up and somewhat smooth, sector: Industrial Industry: Industrial goods Why: Out of the big name industrial companies that I could think of, this one had the highest dividend
- TGT Target - $61.99 per share, 3.36% div yield, graph: looks up and choppy, sector: Services Industry: Retail Why: My brother is a pharmacist there, so I get to see usually how busy they are, also I just read that they are increasing their dividend http://seekingalpha.com/news/1975635...idend?uprof=45
- T AT&T - $34.48 per share, 5.34% div yield, graph: looks up but choppy, sector: Technology Industry: Telecom Services Why: I use ATT and even though they have their problems, I see them as the most stable phone service company and they always seem to snag the exclusive gotta have it phone, as well as almost all the people I know that have company phones are on ATT, also I liked their dividend
- ED Con Ed - $56.69 per share, 4.3% div yield, graph: looks up and somewhat smooth, sector: Utilities Industry: Electric Utilities Why: Out of the big name Electric companies that I could think of, this one had the highest dividend. Here in Texas its unregulated, so usually I just go with whoever has the lowest rate, but most of those are little companies that are private
What do you guys think
I was hoping my dividend average would be higher, but this is basically all I could think of
Thanks