Week 1 (July 31 – Aug 11):
For growth, I suggest looking at INTT, NVMI, KLIC, TFECY, LYV, and GILD. For dividend growth and income, consider MPLX, and NTES. ETF’s that pay around 8% quarterly and provide strong growth are IHD, and IAE. An undervalued CEF that pays monthly is the Boudler Growth and Income Fund (BIF). For pure dividends, consider EOD and GPM that pay about 11% quarterly.
Stocks are generally fully valued, so the average growth rate will tend to equal to the economic growth rate. That is not bad new since quarterly growth is up and so are earnings. Consumer expectations and spending are also strong and we are finally beginning to see some private investment. There will be stock corrections and pull-backs, but the overall bull-market is still going strong. I’d consider my stock picks as a way to increase your returns over that of the overall market and continue to buy on pull-backs and corrections. Good investing!
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Stock Picks for second week (August 14 – 18):
We’ve had a bit of an August sell-off (about 2%) and everything appears to now be on sale. Can’t say that this is the only sell-off likely to happen but there are some good prospects out there. Consider EA, VNTV, Q, ISRG, SQM, MCO, NOW, CRM, TTD, PCTY, Q and USCR for growth. For dividend growth consider DE. For High Yield Dividends and possibly a little upside consider NLY and ABR. Good Investing!
August 14 update: I am changing one of my base stocks. The change I recommend is to sell Alaska airlines (ALK) and remove it from the base stock portfolio. In its place buy U.S. Concrete (USCR). My reason is that I expect USCR to become a more consistent performer over the long run. Too often the oligopolistic nature of airlines is to engage in various forms of price wars which hurts their stocks. On the other hand, price appreciation in USCR results from consistent and increasing private sector demand. Due to a high U.S. public debt to GDP ratio that is greater than 1, I don’t expect much from government expenditure increases. Of course any increased government infrastructure expenditure would add to the rationale for holding USCR in the base stock portfolio.
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Stock picks for the third week of August (8/21 – 8/25):
August continues as a typically bad or difficult month for stocks. The good news is that underlying economic fundamentals in the US and the global economy remain strong. The only risks are an internal economic shock due to over aggressive FED tightening or an external shock due to something associated with North Korea. Neither seem likely to occur. Growth stocks to consider are STMP, WTW, TAL, HIIQ, NXPI, TTD, LYV, and BL. A high yield and capital appreciation fund to consider is CEFS. A strickly very high yield fund you might consider taking a look at is CEFL. Good Investing!
Last week of August (8/38 – 9/1) Stock Picks:
For growth consider HUBS and ALGN. For dividends consider NEWT, KBWD, DSL, BSJJ, AWP, CHCT, RQI, and RFI. AWP is an undervalued CEF so you might also get capital appreciation along with a 9.6% dividend yield.
The long-term bull market remains in place. Short-lived sell-offs and contractions are safely ignored by those with a longer term investment horizon. Hedging short-term risk requires increased cash and a hedge such as buying the VIX or possibly TZA. TZA is a little perverse lately because small caps are the only US sector doing well and it is an inverse 3x leveraged small cap stock so it is going slightly down along with the other indexes as opposed to going up. Still, a real sell-off with cause it to increase rapidly. Buying the VIX (such as TVIX) has the advantage of increasing with volatility so it will increase if the stock market goes up or down. Good investing!
