Stocks I Bought, Added, And Want

side hustles

In my previous post of stocks I bought I shared that I do love growth stocks and my index funds.  The problem with growth stocks is that it makes your overall portfolio much more volatile.  With Netflix, DDD, and FIG in my Roth IRA last year my return was 83%.  What goes up fast can come down just as quick, as earlier this year when the market dropped 7% my Roth was down 19%.  Ouch. To lower the beta in my portfolio I started buying dividend stocks which holds up well in volatile markets.

Here are some of my previous recommendations.  I bough Linkedin earlier this year at $146 per share, but so far most of my individual picks have been dividend stocks.  I’m getting clobbered on TCS (The Container Store) down 47%, I’m going to sell that at the end of the year to offset my tax liabilities from capital gains.

Whole Foods (WFM)  Price: $38.01   Bought this last Friday its down around 35% this year, as competition in the organic category continues to heat up.  Its still pricey but this is the “cheapest” Whole Foods has been in years, plans to internally finance their growth.  Whole Foods is a cult follwoing and not just organic, I say the stock will rebound to the mid 40s within a year.

Kinder Morgan (KMI) First bought 4/21 $33.88  Added at $38.48   Consolidated all their MLPs under one roof.  Jason at Dividend Mantra has a great write upabout it here.  Stock has a nice pop, but has some good years ahead of it.

My next purchase is SeaDrill (SDRL).  Current price:  #36.71   11% dividend Yield.  Provide oil rigs for deep sea drilling.  Rates are falling and the company just issued some debt.  Usually a high payout means a company is in trouble and most likely the dividend will get cut, but Seadrill is generating cash in excess of the dividend.

A growth stock I’m watching Invensense (INVN).  Should’ve bought at 18, getting too pricey but if it drops to $20 I’m buying,

Triple disclaimer:  These are not recommendations or a solicit to sell or buy shares from anyone.  Damn you lawyers.  Invest at your own risk. I’m posting this so in a few years down the road I can see if I had crappy picks or these stocks helped me towards FI.

Are there any stocks on your watch list?

Comments

  1. Charles,

    Thanks for the mention! KMI appears to be a solid pick, even after the pop.

    Though, I’m wondering what cash flow metrics you were using for your claim that SDRL “is generating cash in excess of the dividend”? Their FCF has been negative for most years I’ve seen, which doesn’t cover the dividend. Just wondering, because I’ve noticed some people are a fan of SDRL, but it just seems risky to me.

    Best wishes!
    Dividend Mantra recently posted…Recent BuyMy Profile

    • Jason
      Seadrill reported weaker earnings of 653 million amd have a payout ratio of nearly all the earnings. However they have 580 million in cash, 2.5 billion credit line and $20 billion in orders. Management is committed to the dividend, I looks safe for another year.

  2. Kay @ Green Money Stream says:

    Greetings Charles,
    Glad to see you are adding some dividend stocks to your portfolio. I generally prefer the stocks of stable, dividend paying companies and personally focus on the dividend champions. Some people think this is boring, I know, but it’s what feels right for me. I added to my position in AFL last week as shares were down a bit on earnings announcement. Best of luck!
    -Kay

  3. Thanks for sharing your recent stocks picks and watch list with us. I have quite a few stocks on my watch list and I bought three new ones this month. I initiated positions in TD, BNS, and RY. Three large Canadian banks for some diversification in my portfolio. Try and load up on some strong dividend stocks too. Some of the names mentioned I have no interest in. Thanks again for sharing your thoughts… that’s what these blogs are about… sharing different investment ideas, themes and portfolios.
    DivHut recently posted…Recent Stock Purchase – August 2014My Profile

    • Hey div
      I’ve been reading your picks and they’ll hold up in turbulent times. When the market is rocky I tend to lose more than the market

  4. Thanks for sharing Charles. I’m always looking to add some solid, dividend champions/aristocrats to the lineup, and usually don’t stray to far from that (my recent Visa purchase aside). I’ll definitely have to give a few of these a look, but the consensus on KMI is that it still has plenty left in it.
    Ryan @ Impersonal Finance recently posted…Loyal3 for stock investingMy Profile

  5. Hey Charles. My preference is to purchase index funds now. I did a little bit of investing in individual stocks but I just don’t have the time to do the research properly. After reading a few investing books I decided to just stick with broad funds until I have the time to do the proper research. Hope your picks work out for you this year!
    Thomas @ i need money ASAP! recently posted…Get Discounted Phone ServiceMy Profile

    • Index funds are the way to go. You should only dabble in individual stocks when it’s a small percent of your portfolio

      • Can’t remember where I read this (maybe in Investor’s Manifesto by Bernstein) but the suggestion was that individual stocks should be kept to 5-10% of your portfolio unless you’re willing to put in the time to properly research (something like 10-20hrs per stock per year). We’re following that advice for our portfolio.
        Thomas @ i need money ASAP! recently posted…Donate Hair For MoneyMy Profile

  6. I bought WFM about two years ago and it has consistently been up until very recently. Really hoping this is temporary.
    Stefanie @ The Broke and Beautiful Life recently posted…Apple Stock: A Lesson In PatienceMy Profile

  7. I would get into kinder as it looks like a safer bet, compared to the others. If I pick stocks, I have to first decide if I want it for growth or income? Then the picks will be based on a rational decision going forward. Without risk there’s no reward, as you learned with the 83% return is a massive capital hike. Good Luck.
    EL @ Moneywatch101 recently posted…Real Estate Investment TrustMy Profile

    • Thank el the only problem with 83 percent gain is netflix and ddd became a large part of my Roth. I’ve learned my lesson from seeking too soon so I’m riding it out

  8. To lower the beta why not look at dividend champions?
    Evan recently posted…A Huge Problem with the Financial Planning IndustryMy Profile

  9. Thanks for the tips on your stocks here! It’s sad that the market dropped for a while – but it’s been on the way up again.

    Have you looked into Alibaba at all? I’m currently hanging onto that stock and I have confidence that this company will continue to grow.

    Thanks for the great pointers and looking forward to more!
    Rob @MoneyNomad recently posted…Three Steps to Save 17% on Every Hotel StayMy Profile

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