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May 20, 2015
May 19, 2015
Quaker Oats for breakfast & Pepsi for dividends
My longest buy & hold stock is PepsiCo, Inc (NYSE: PEP).
I bought my first share of Pepsi 10+ yrs ago after reading One up on Wall Street: How to Use What You Already Know to Make Money in the Market by Peter Lynch. That book inspired me to invest in mundane products normal people use and consume daily. The soda beverage is simple to understand and consumed daily worldwide.
PepsiCo owns iconic sodas Pepsi, Mountain Dew, 7Up, Gatorade along with a host of food snacks Quaker Oats, Lay's / Doritos chips, Tostitos, Cheetos and many other $1B+ brands. Recently with increasing popularity in organics and a more health conscious public, PepsiCo has begun to convert their products from the so-called empty calorie or junk food to a less processed and more whole foods category.
This move into more nutritious and healthy food ingredients has been a challenging business undertaking as indicated by PepsiCo CEO, Indra Nooyi where she talks about the challenge of brand perception and consumer's ever changing tastes.
PepsiCo is also making their factories more sustainable and leading corporate social responsibility in water usage and renewable energy. In the long term, I think this will be beneficial to both consumers and investors alike.
I continue to own this stock, collect the dividends and also consume their products.
(Disclosure - I've consumed 100% whole grain Quaker Oats 2-3 times a week for breakfast for at least 10 yrs now, how's that for a loyal company investor ! :)
Basic info:
Market CAP: 144B EPS:$4.29 Dividend %: 2.8 <= 25+ Years Higher Dividends
Check out my Dividend & Growth Stock Portfolio Watchlist
I bought my first share of Pepsi 10+ yrs ago after reading One up on Wall Street: How to Use What You Already Know to Make Money in the Market by Peter Lynch. That book inspired me to invest in mundane products normal people use and consume daily. The soda beverage is simple to understand and consumed daily worldwide.
PepsiCo owns iconic sodas Pepsi, Mountain Dew, 7Up, Gatorade along with a host of food snacks Quaker Oats, Lay's / Doritos chips, Tostitos, Cheetos and many other $1B+ brands. Recently with increasing popularity in organics and a more health conscious public, PepsiCo has begun to convert their products from the so-called empty calorie or junk food to a less processed and more whole foods category.
This move into more nutritious and healthy food ingredients has been a challenging business undertaking as indicated by PepsiCo CEO, Indra Nooyi where she talks about the challenge of brand perception and consumer's ever changing tastes.
PepsiCo is also making their factories more sustainable and leading corporate social responsibility in water usage and renewable energy. In the long term, I think this will be beneficial to both consumers and investors alike.
I continue to own this stock, collect the dividends and also consume their products.
(Disclosure - I've consumed 100% whole grain Quaker Oats 2-3 times a week for breakfast for at least 10 yrs now, how's that for a loyal company investor ! :)
Market CAP: 144B EPS:$4.29 Dividend %: 2.8 <= 25+ Years Higher Dividends
Check out my Dividend & Growth Stock Portfolio Watchlist
May 15, 2015
Chasing yield - bought more STWD (50 shares, $96 dividend income)
This week, I added more shares of Starwood Property (NYSE:STWD) on price weakness in the REIT sector. For long term income investors, Starwood's 5 year average yield of over 6% and a reasonable payout ratio (~88%) looks really attractive. Their growing revenue and earnings also inspires confidence that they will be around for a while.
I first bought shares in Starwood in March after a price pullback. That's when I also found out Starwood has had at least 5 straight years of higher dividends (see Dividend Challenger on David Fish's list). This is a good sign of things to come for this company.
With long term US economy improving and short term interest rates rising gradually, I think Starwood's business (Commercial Loans and Real Estate) will continue to do well and hence their dividend will keep on rolling regardless of current volatile stock market conditions.
Basic info:
Market CAP: 5.8B EPS: $2.12 Dividend %: 8
With long term US economy improving and short term interest rates rising gradually, I think Starwood's business (Commercial Loans and Real Estate) will continue to do well and hence their dividend will keep on rolling regardless of current volatile stock market conditions.
Basic info:
Market CAP: 5.8B EPS: $2.12 Dividend %: 8
May 1, 2015
Future 5 to10x bagger - Twitter ?
Twitter (NYSE: TWTR) is a real-time social and messaging platform that has been around for several years now but unlike Facebook which found a lucrative way to monetize millions of mobile users, Twitter is still struggling to figure out its own active users and how to make money from them.
Market CAP: 25B EPS: -0.98 <= losing money
Twitter is one of the names I have in my dividend and growth stock portfolio watchlist and I believe they have the potential to become a 5-10x bagger if (and that's a big if) they can figure out a decent monetization strategy. Until that happens, it is a highly speculative stock only for gamblers and people who can stomach a 20+% move down in a single day.
Market CAP: 25B EPS: -0.98 <= losing money
Twitter is one of the names I have in my dividend and growth stock portfolio watchlist and I believe they have the potential to become a 5-10x bagger if (and that's a big if) they can figure out a decent monetization strategy. Until that happens, it is a highly speculative stock only for gamblers and people who can stomach a 20+% move down in a single day.
The stock chart shows a 20+% drop after Twitter missed its earnings recently, Ouch !
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