So a few people have gotten in touch with me, and have wondered what stocks I’m currently monitoring. So I sat down and wrote down all the main companies on my wishlist. They encompass ever major sector, and most industries therein. Without further ado, here’s what’s missing from my dream portfolio!
… not quite. Let’s clarify a few things first:
These are broken down by sector and industry, as classified by Scottrade. Companies marked with an asterisk (*) are not true dividend growth companies. They won’t appear on David Fish’s list due to inconsistent dividend raises, holding the dividend steady for too long, or just raising and cutting it at will. Some don’t even pay a dividend at all. However, they are included due to great competitive advantages, wide moats, strong brand names, or other reasons. These kinds of companies may be good investments, and I may buy them here and there. However, since my primary goal is steadily increasing income generation, not capital appreciation, they will never be a large part of my portfolio.
Obviously, I won’t be including what I already own; that’s available here. I don’t see myself owning all of these. Not all of them will meet my criteria. Also, the purchase of one may cause the removal of others. For example, if I buy XOM and IMO, that most likely means COP and EOG will be removed. This is not true all of the time, since there are a lot of duopolies I wouldn’t mind owning. LOW/HD, V/MA, and UPS/FDX all fall under that. And I want basically all the railroads at some point.
And just because I’m a nice guy, I want on FAST Graphs and checked which stocks on this list appear to be fairly valued/undervalued at this time (determined by comparing the price to the Normal P/E Ratio line). They are highlighted in green. Be warned, no other research on these has been done!
Okay, now we’re ready. Let’s take a look!
BASIC MATERIALS
- Chemical manufacturing: APD, FUL, MON, PX, SHW
- Chemicals (plastics & rubber): SCL, WLK
- Containers & packaging: BMS
- Fabricated plastics & rubber: RAVN
- Forestry & wood products: WY*
- Iron & steel: PCP*
- Metal mining: BBL
- Misc. fabricated products: DOV, PH
- Non-metallic mining: CMP
Fun fact: SCL is the only company in the US that is legally allowed to import coca leaves and produce unprocessed cocaine. They sell the non-narcotic leaves to Coke for drinks, and the cocaine to Mallinkrodt for refining.
CAPITAL GOODS
- Aerospace & defense: BA*, GD, LMT, RTN, UTX
- Construction & agricultural machinery: CAT, DE
- Construction – supplies and fixtures: MMM, VMI
- Misc. capital goods: CLC, TNC
CONSUMER CYCLICAL
- Apparel & accessories: COLM, VFC
- Appliance & tool: GWW, SWK
- Auto & truck parts: GPC, ITW, JCI
- Footwear: NKE
- Furniture & fixtures: LEG, WSM
- Recreational products: HAS, MAT
CONSUMER NON-CYCLICAL
- Beverages (alcoholic): BF/B, DEO
- Beverages (non-alcoholic): CCE, DPS, NSRGY, PEP
- Crops: ANDE
- Food processing: ADM, CPB*, GIS, HRL, K, KRFT*, MDLZ*, MKC, MJN, SJM, TR
- Personal & household products: CHD, CL, ECL, TUP, UL*, WDFC
- Tobacco: MO, RAI
ENERGY
- Oil & gas operations: COP, EOG, IMO, VLO, WMB, XOM
- Oil well services & equipment: CRR, HP, MMP
- Oil & gas (integrated): MRO
FINANCIAL
- Consumer financial services: MA*
- Insurance (accident & health): AET*, AFL, UNH
- Insurance (property & casualty): BRK/B*, CB, TRV
- Investment services: BEN, BLK, TROW
- Money center banks: TD*
- Regional banks: BNS, USB*
HEALTHCARE
- Biotechnology & drugs: ABT*, AMGN*, MRK*
- Major drugs: PFE*
- Medical equipment & supplies: BCR, BDX, MDT, MSA, SYK
SERVICES
- Advertising: OMC
- Broadcasting & cable TV: DIS*, NFLX*
- Business services: ADP, PAYX*, PCLN*, V
- Casinos & gaming: LVS*
- Communications services: CMCSA, T, VZ
- Motion pictures: VIAB
- Personal services: SCI*
- Printing & publishing: MDP, MHFI, TRI
- Real estate operations: DLR, ELS, ESS, FRT, NNN, OHI, RYN*, SKT, SPG, WPC
- Recreational activities: FUN*
- Rental & leasing: AMT*, HCN, HCP, RCII, UHT, VTR*
- Restaurants: BWLD*, CBRL, CMG*
- Retail (apparel): LB*, ROST, TJX
- Retail (catalog & mail order): AMZN*, EBAY*
- Retail (department & discount): DG*, DLTR*
- Retail (drugs): CVS, WAG
- Retail (grocery): CASY, KR, SBUX, SYY, WMT
- Retail (home improvement): HD, LOW
- Retail (specialty): AAN, COST, LUX*, TIF
- Security systems & services: BRC
- Waste management services: RSG, WM
TECHNOLOGY
- Communications equipment: AAPL*, CSCO*
- Computer networks: JKHY
- Computer services: FB*, GOOGL*, IBM, LNKD*, YHOO*
- Scientific & technical instruments: EMR
- Semiconductors: KLAC, TXN
- Software & programming: ORCL
TRANSPORTATION
- Air courier: FDX, UPS
- Airline: ALK*, CPA, LUV*
- Misc. transportation: CHRW
- Railroads: CNI, CP*, CSX, UNP
- Trucking: JBHT
- Water transportation: RCL*
UTILITIES
- Electric: AVA, BIP, D, DTE, DUK, ED, LNT, MGEE, NEE, PPL, SO, WEC
- Natural gas: NFG, NWN, OKE, UGI, VVC
- Water: AWK, AWR, CTWS, CWT, MSEX, WTR
I hope this list helps, and that you find some interesting companies to research further!
Do you own any of these? What’s on your wish list? Any companies I’m missing or should add?
Disclosure: None. Image source is available here. I will keep track of the updated list here.
21 Comments
Cool list, will have to take a look at some of these stocks. Thanks for sharing.
Tawcan recently posted…October dividend update
No problem!
The dream team of dividend stocks? Looks like it. Happy to see no crazy high yielding REITs or overload on MLPs. Just good old fashioned strong long term dividend payers. I’m happy to see many of the names above in my portfolio and if you look at my portfolio performance it has been great. Nothing to complain about. Thanks for compiling this dividend list.
DivHut recently posted…Dividend Income Update â October 2014
Yeah, I learned my lesson with ARCP. No SDRLs or LNCOs for me! Gotta say thank you for the work you so, as my list got some good ideas from portfolios and lists like yours. Case in point: JCI. Thanks for the work you do as well!
Hi Dividend Developer
That seems to be a very thorough breakdown of the lists. Are you going to own in each and every subsector highlighted inside? It seems really good though it might seem a little bit over diversification if someone were to own all those highlighted.
Great job still.
B
http://Www.foreverfinancialfreedom.blogspot.com
Maybe. I don’t really intend to. I just broke it down for ease of classification. I feel there’s a bit of overlap here. For example, buying enough in the food processing industry would mean I could delete ANDE, and FDX/UPS could mean I delete the airlines. However, it’s a good goal to shoot for, if nothing else. Guarantees adequate diversification. Thanks for stopping by!
Oufff! It might have taken you quite some time to check all these stocks and compile this list. Don’t forget to feed your carnivorous plants too
Thanks for sharing though. I have interest in many of these companies too. There are so many companies out there that I’ll eventually need to automate a screener and data downloader to keep track of everything and find the best value out there at any given point in time.
Cheers
Allan recently posted…Monster list! 26 CommentLuv enabled personal finance blogs to boost your blog traffic!
Hahaha, most of the plants are in dormancy for the winter. Little less stress on my end! This list was actually several months in the making. And it’s easier than it looks. Many companies on this list won’t be bought for a while, whether due to low Chowder number (MMM, TR, MHFI) or chronic overvaluation (MO, CL, CHD). So those only need to be checked on every few months. Some that are close to both (CAT, DE, WLK) do require more monitoring, but so be it.
Great list, DD. Thanks for taking the time to share it and also indicating which ones are trading below the normal P/E ratio line.
Its good to see that there are still good values out there – even under these frothy market conditions. I will be taking a closer look at some of these in the near future.
cheers
R2R
Roadmap2Retire recently posted…Bank of Montreal Dividend Stock Analysis
No problem. I’m going through the list currently again to see also currently meet the Chowder rule, so stop by again soon for that.
Great list!
Homework + savings = good investiments!
Nuno recently posted…Corticeira Amorim – Quoted in Euronext
Truth! Thanks for stopping by!
Hi, Dividend Developer.
Thanks for putting this together. There are so many good names to own. I’m struggling with trying to determine what is a reasonable number of stocks a person should own. Certainly you can own more if you stick to high value dividend growers, but it is easy to out kick your coverage and bite off too much if you aren’t careful. Good luck with your dividend journey.
Goosemann Jones
Flight to Dividends Blog
Goosemann Jones recently posted…Recent Purchase-BBVA
Yeah, it’s a fine line between being diversified and having too much to track. I think for me, the sweet spot is about 60-75 stocks. I hope to own more than 50 by retirement for diversification’s sake. Around 75, it’d start getting tough to manage, and I’d draw a pretty strict line at 100. We shall see!
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Dividend Developer,
Thanks for taking the time to compile this list. It is a great starting place if you are looking for a new dividend growth stock. Listing by sector makes it a heck of a lot easier to sort throug the list if you are researching for a specific industry to fill a whole in your portfolio.
Hopefully one day you will make this dream portfolio your actual portfolio! Thanks again for taking the time to put this list together.
Bert, one of the Dividend Diplomats
Dividend Diplomats recently posted…Bert & Lanny’s Dividend Income Summary October
No problem. I liked making it, as there are a lot of companies on there that most people haven’t come across. Hopefully I broadened some horizons with it!
DD,
Always interesting to see lists like these and compare thought processes between various bloggers and oneself. There are of course a lot of parallels and of naturally some differences.
For instance, I see you’ve listed quite a few non-Dividend payers and that actually makes sense because then one can be prepared for the time when the companies do in fact become ready to send some cash the way of their shareholders. AAPL, for instance, finally started paying a little while back and by having done research on the company beforehand, the familiarity is already there to potentially add it.
Thanks for the read,
– Ryan from GRB
Get Rich Brothers recently posted…If You Can’t Beat ‘Em, Join ‘Em
No problem, and thanks for stopping by. Yeah, that’s kind of the reason there’s a lot of non-true-dividend growth stocks on there. I feel they will eventually pay a dividend or have just started. For example, I suspect AMT, LVS, and AET will keep increasing them again for a while, and I suspect companies like FB will be doing so in a few years. So by mixing these with the tried-and-true dividend payors, I will have a nice blend of higher-yield/lower-growth and lower-yield/higher-growth dividend growth stocks. Diversification and all that.
Nice list! I need to add to my WAG position. Even though it has gone up over 100% since I purchases , I don’t think it’s a bad value here. Obviously, a lot of energy names showed up with the weakness in oil. I’ve been adding to COP and am thinking of buying more BP as well.
Cheers!
Solid choices in WAG and COP. Don’t know much about BP, but most oil plays are appealing. I’m particularly interested in XOM, HP, and COP. Thanks for stopping by!