Dividends4Life: My 5 Least-Favorite Stocks for Today

My 5 Least-Favorite Stocks for Today

Posted by D4L | Saturday, April 19, 2008 | | 6 comments »

Last week I listed the stocks in my portfolio that I considered to be "My Favorite 5 Stocks for Today". I thought it would be interesting to followup with the stocks that I am holding that are on the other end of the spectrum. It is important to note these picks will change over time (maybe even by the time the market opens on Monday). Below are the 5 stocks in my portfolio that I am the least happy with:

  1. HD - HD has held its dividend constant at $0.225/share for the last six quarters, and I suspect it will continue for at least one more quarter. That's ok if you have a double-digit yield, but at 3+% I expect more. This stock is currently "On The Shelf".

  2. WMT - Unlike HD, WMT raised its dividend at the appointed time, but at 8.0% it wasn't enough to keep my model smiling. At the current yield and a lower growth rate the NPV MMA Diff. is now negative. WMT is no longer a buy but is also "On The Shelf".

  3. STI - As noted in an earlier post, I am holding too many different bank stock (6) and I am looking to sell 2-3 of them. From a total return standpoint STI is my worst performer of all income stocks that I hold, which has put it "On The Shelf".

  4. MTB - Ditto STI above. From a total return standpoint, MTB is my second-worst performer of all income stocks that I hold, which too has put it "On The Shelf".

  5. SFI - Within my income investments, SFI is by far my most risky investment. This is reflected in its ~20% yield. SFI is normally above-average when it comes to volatility, but recently, its volatility has been especially high. SFI is currently not "On The Shelf", but I am watching it closely.

Disclaimer: Material presented here is for informational purposes only and is based solely on my opinion. Before buying or selling any stock you should do your own research and reach your own conclusion. See my Disclaimer for more information.

Full Disclosure: At the time of this writing, I own shares of all the above-mentioned stocks.

What are your 5 least-favorite stocks in your portfolio?

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  1. D // April 19, 2008 at 5:12 PM


    Sometimes the best action is not to take any action at all.
    Don't be fooled by the increased market volatily and do not become a day trader ;-)

  2. Anonymous // April 19, 2008 at 6:22 PM

    That's interesting you have HD and WMT on the shelf as they have historically been good dividend growers.

  3. Anonymous // April 19, 2008 at 9:49 PM

    Dividend Growth Investor: Agreed. At this point my only action would be to move it to the shelf, I am currently over-allocated in it so a buy is not imminent.

    dividenddollar: I am more concerned about HD than WMT at this point. HD has paid 6 dividends without an increase. I suspect they will pay 7, then have a token increase to perserve thier string of years with an increase.

    As for WMT, the same thing happened in 2003. They had an anemic 7.1% dividend increase, then followed it by a 4 years of strong increases. Right now WMT's NPV MMA Diff. is negative, which is a red flag for buying.

    Best Wishes,

  4. Anonymous // April 21, 2008 at 11:49 AM

    I considered buying Walmart while in 42 to 46 range but did not pull the trigger. I might still do so but not at the current time.n Josh Peters, a Morningstar analyst who concetrates on dividend paying stock, had an interesting open letter to HD. Basically to up thier dividend payout since growth won't continue at the historical level. The only dividend stock I am currently unhappy with DHT. I stayed away from most bank stocks, with the exception of LYG, the last few years as I have been anticipating the mortgage crises for sometime. So I am fairly happy with my current portfolio.

  5. Anonymous // April 21, 2008 at 1:18 PM

    Alain: I think WMT will be ok. As for HD the jury is still out.

    I have never looked at DHT. Is it structured as a partnership?

    What else are you holding that you are happy with? I'm always looking for new stocks! :)

    Thanks for sharing your thoughts.

    Best Wishes,

  6. Anonymous // April 22, 2008 at 7:30 AM

    I suspect that the reason I did not have 5 stocks that I am really unhappy with is that my portfolio is probably smaller than yours.

    DHT isn’t set up as a partnership. I was initially attracted to the high yield +10% at 15$ a share. They subsequently slashed their divided although they still yield approximately 10% but trade in the 11$ range. This was my second buy in what was to become my divided portfolio and I was still feeling my way around. DHT basically lease 9 double hull tankers to their parent company OSG and get paid depending on their usage.

    My dividend portfolio consists of: DHT, JNJ, SSW, BIP, ACAS, O, LYG, UN, PAYX, PG

    We also own the following at a zero cost base all traded on the London Stock Exchange, CTR, BARC, RBS, HSBA.

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