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?