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Outlook for August 2014
Posted by: Roadmap2Retire (IP Logged)
Date: August 1, 2014 04:48PM
The quarterly earnings season has been in full swing for a couple of weeks now and it has been interesting to watch a majority of the companies eke out earnings beat. However, the outlook for the rest of the year from most earnings has been mixed. The Fed has indicated that the bond buying program is going to decrease again in Aug following the trend and has indicated that they are seeing some inflation in the economy.
July turned out to be a net negative month due to the ongoing crisis in Eastern Europe & Middle East and the trend will probably continue into August. This could potentially provide the long-due correction in the market, providing with some investing opportunity considering all the following points.
Provided the right conditions, I intend to add to my positions in some of the following holdings.
Chevron Corp (CVX) is a dividend champion having raised its dividends for 27 years consecutively. Under the current market conditions, where decently valued stocks are hard to find, CVX provides relatively good value. CVX has a 5-yr DGR of 9% and a 10-yr DGR of 10.6%.
Johnson & Johnson (JNJ) is a behemoth in the healthcare and consumer goods sectors. The double play on the two sectors makes this a great pick. JNJ is a dividend champion that has been raising dividends (JNJ announced a 6.1% dividend raise in April) consecutively for 52 years; has 5-yr DGR of 7.6% and a 10-yr DGR of 10.8%.
Medtronic Inc (MDT) manufactures and sells device-based medical therapies worldwide. Medtronic is a dividend champion that has been raising dividends for 36 years; has a 5-yr DGR of 11.6% and 10-yr DGR of 14.9%. MDT has recently announced plans to takeover Covidien (COV) and is planning a tax inversion to Ireland.
Monthly Contributions: I add to my positions in the following stock and funds on a monthly basis:
I am also considering various stocks that are not currently in my portfolio, but the current high valuations do not provide many options.
What are your thoughts on the stocks mentioned here? Do you own them or are they on your watchlist?
Disclosure: My full list of holdings are available here.
This article first appeared on www.roadmap2retire.com
Stocks Discussed: JNJ, MDT, RCI, BNS, CVX, CNI, NSC, PG, UL,
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