Monday, April 17, 2006

Asset Reallocation, Version 3.0: And the Winner Of $50K Is...

I'm planning on shifting approximately $50k from cash accounts to stocks. Specific stocks include Johnson & Johnson, Procter & Gamble, Dupont, IBM, Wal-Mart, VZ, 3M, Raytheon, GE. I haven't decided yet, so there is no "winner" at this moment...but soon. I would really like to consider some alternative energy stocks as well...anyone have some input on any stocks I should consider? I don't know where to many alternative energy stocks to choose from. My primary requirements for stock consideration: - Near 52wk low? - Chart indicates flat performance or down pattern? - Dividend? - Comparison to competitors in same industry? - Company outlook? - Management? - Aggressive compared to competitors in industry? My personal 2007 financial considerations: 1. I may want to buy a house, I would like to have ~100k available for a downpayment. Serious shopping to start around June 2007. 2. I have some CDs set to mature, latest one in June 2007. 3. These are not retirement stock investments. My retirement stocks are invested in company provided funds. Johnson & Johnson (JNJ) Current: 57.91, 52wk low: 56.70 Dividend: ~2.3% I like this stock. A great brand, more baby boomers retiring, long term, I think this stock is a great buy. Procter & Gamble (PG) Current: 56.60, 52wk low: 51.91 Dividend: ~2.2% Both JNJ and PG look good. Du Pont (DD) Current: 43.30, 52wk low: 37.60 Dividend: ~3.4% 3M (MMM) Current: 80.97, 52wk low: 69.71 Dividend: ~2.3% I don't really like 3M compared to DD and JNJ. General Electric (GE) Current: 33.89, 52wk low: 32.21 Dividend: ~3.0% Compared to C, PHG, and SI, GE's stock performance looks flat. Wal-Mart (WMT) Current: 45.77, 52wk low: 42.31 Dividend: ~1.5% I like Wal-Mart compared to COST and TGT, they are trading lower and have a better outlook. Of course they are huge, may be too big in fact... Verizon (VZ) Current: 32.81, 52wk low: 29.13 Dividend: ~4.9% Overall the telecom industry is questionable...with VoIP, wireless, I'm wondering where telecom will go. Plain old telephone lines will be here for a while though...Great dividend. Aggressive advertising. Raytheon (RTN) Current: 43.69, 52wk low: 35.96 Dividend: ~2.2% Not really the best time to get into this stock, but I like the outlook for the military industry. International Business Machines (IBM) Current: 81.93, 52wk low: 71.85 Dividend: 1.0% Not real attractive although they have been flat for sometime now...I'm not so confident in the tech industry...Dividend payout is fairly low. Previous posts: Major Asset Allocation, But Where? Part 2 Asset Reallocation, Version 1.0 Major Asset Allocation, But Where? Part 1 I also found a post by Dividend Guy that had info on using the Yahoo! Stock Screener...sounds pretty cool, I may check it out later...May 1st is quickly approaching! I gotta get my funds ready. Any feedback, ideas?

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