Comments on: November Dividend Stocks Watch List

By: M

Sun, 15 Nov 2015 20:44:41 +0000

Hi sparklebee, thanks for stopping by. I am also quite interested in Diageo… it’s been on my watch lists for ages, sometimes popping in and out due to the higher PE… but it’s a strong contender, for sure.

With regards to GSK, they are one of many foreign (to China) companies who are penalised by the Chinese when their own national companies engage in the exact same practices and the authorities turn a blind eye to it. I’m not making a moral judgement on what GSK did or didn’t do, but it’s just one of those things that we can’t really be too sure of I think. In a similar vein, BMW have been trying to sue Chinese car manufacturers unsuccessfully for quite a while, they have had several of their models blatanlty ripped off – I mean the design is just the same, but the Chinese courts rule that they weren’t copied… SO basically what I’m saying is you can’t really trust what goes on in Chinese business practices and how they choose to enforce (or not) the law.

On your ISA – why not just open another ISA? One that does stocks as well as anything else you may want? You could try AJ Bell for example – pretty cheap and you can do £1.50 trades once per month

By: SparkleBee

SparkleBee — Sun, 15 Nov 2015 15:46:27 +0000

Hi M,
I am interested in buying Diageo plc. I already have some GSK shares and do wonder about their fraud issues in China as others have commented on. I want to diversify my income dividends across a number of sectors and am mainly doing this via ISA funds. I pick up a few individual shares now and again as I can only buy them outside a ISA at the moment as the ISA account I have only permits me to buy funds.
I wait you next list and see if anything else pops on there that looks interesting.
Happy investing.
SB

By: M

Sun, 15 Nov 2015 12:01:51 +0000

True. Although if you’re buying in US$ then the exchange rate is already way in your favour. The Euro is getting killed right now, and the £ is not exactly high, but not as bad as the Euro, so if anything you may like to look towards Euro-traded stocks like Munich Re and the like? Just a thought.

By: M

Sun, 15 Nov 2015 12:00:11 +0000

Hey Simon,

thanks for your comment and suggestion of Galliford Try. In previous monthly watch lists, they’ve never met all my criteria, but as I’ve been saying recently, I do go beyond the bounds of my criteria sometimes, and GFRD might be such a stock in which I might some shares… They do have a good dividend history though, and depending on which website you look at, the figures seem to suggest a dividend cover of around 1.7 which would, in fact, tick my 1.5+ criterion.

The only related stock I hold is Carillion, so if anything, I’m underexposed in construction/housebuilding types of stocks right now.

Thanks for stopping by and pointing towards GFRD

Cheeers

By: Vivianne

Vivianne — Sat, 14 Nov 2015 23:50:06 +0000

I have a a few shares of DEO, I might buy some more after the interest rate increase, it would make EU stock cheaper. Will see.

By: Simon

Simon — Sat, 14 Nov 2015 15:25:37 +0000

Have you ever considered Gfrd? Price has slipped back and yield is attractive. Dividend cover may a little tight for your criteria though. You would also need to wait a year for the main payout as currently ex div. Thinking of topping up my holding but fear over exposure to the sector in my portfolio.

By: M

Sat, 14 Nov 2015 09:18:02 +0000

If you were buying today, I’d be wondering how you’re doing that, because the market’s closed! But I wouldn’t be joining you in buying RR, because they’ve never matches my criteria… Yes, as you say I’m flexible sometimes but RR have got a pretty scary pension funds situation… The company is indeed a fantastic brand, but boy are their finances not great!

With regards to the GSK situation, I think I put a link to an article about businesses in China in my exclusive subscriber news… The article mentions the GSK situation, and it’s probably not as bad as we think.

I’m also always aware that I don’t know a lot, but I do try to be confident in the known factors enough to compensate for things I can’t find out about. However, too much digging cab easily lead to the paralysis of analysis, where you do nothing for fear of doing it wrong… I certainly don’t want to go down that road, so I’d just buy trackers if I thought it might be a problem.

Thanks for stopping by and commenting, always appreciate your opinions!

By: Jim McG

Jim McG — Sat, 14 Nov 2015 08:02:39 +0000

Hi M, I wish I’d had your criteria list years ago when I did invest in individual stocks. I was always looking for a succinct strategy that was thought through, as opposed to the “monkey with a pin” approach I was using! And you’re flexible with your approach, which is a good thing, because “scandal” and GSK will never be far apart. Aren’t they in trouble in China with bribery allegations? I’m afraid, and know from experience, that if you want to be a global company, you are going to be involved in some shady practices somewhere in the world. If I was buying today (literally) I’d be buying Rolls Royce. They’ve taken a hammering this week, but what a fantastic brand. Unfortunately, I know very little else about their business other than their name, which was why I stopped buying individual stocks. “Buy what you know” is undermined when you don’t actually “know” very much!

By: M

Fri, 13 Nov 2015 18:54:51 +0000

Hey Adnan,

thanks for your thoughts. Since I am looking for income, dividends are 100% an absolute must. However, I recently had a conversation with Vivianne of wellroundedinvestor.com about maybe opening another account – one for growth stocks. Because I feel like I need to keep the main NISA account for my income purchases.

Cheers

By: adnan @ themoneyhabits

adnan @ themoneyhabits — Fri, 13 Nov 2015 04:10:20 +0000

Dividend should not be the only criteria to chose stocks though it is something passive income earners must look for when choosing the stocks. Betting on growth and capitalizing on gains should also be one of the considerations as companies which dividends are often mature companies with no future growth prospects therefore they do nothing except paying dividends.

Nice screening technique though M. Picked Stocks are really good bargain to look into.