Stock Watch Board – October 2016
For the respect of transparency, I’d like to release this month’s stock watch update. It includes some companies from the last update that I have continued to keep an eye on, but it also includes some new candidates. Over time some stocks will fall off the list when their financials and growth expectations fall. I never look for a quick trade to make a short-term profit. Every investment I make has a long-term orientation behind it.
With the surge in prices during the last quarter, it has been reasonable to hang out on the sideline for better value. Although, as of recent there has been a noticeable decline in prices for much of the Financials sector with the looming election and the continued wavering form the Federal Reserve. The election typically has a significant impact on the market as a whole and especially the Financials sector – so we tread lightly during this period.
Two months can change a lot in regards to stock performance and selection. Two months rarely will change the market share and brand reputation of a company unless a major crisis occurs. From the August stock watch board release there were a few changes that occurred. Some great companies have been removed due to the fit within the portfolio, and not the lack of performance the stock may have experienced. But also there are a few new representatives that have been on my radar.
Here’s a peek at what’s currently on The Wealth Junkie’s stock board:
Walt Disney Co. (DIS)
Disney is already one of the most recognizable, multimedia, and innovative companies in our history. Recent struggles from its subsidiary ESPN has caused a bad buzz for its share price, but ABC continues to perform well. It is said that Disney World’s land size is comparable to the size of San Francisco.
Market Cap – $148.2B
Earnings Per Share (EPS) – 5.57
Return on Equity (ROE) – 20.35%
5 Year Dividend Growth – 35.25%
Book Value Per Share – 26.00
Dividend Yield – 1.55%
Johnson & Johnson (JNJ)
Johnson & Johnson isn’t just a beauty products manufacturer, but also a research and healthcare corporation. Notable brands under its umbrella are Aveno, Band-Aid, Benadryl, Clean & Clear, Listerine, Motrin, Neosporin, Neutrogena, Sudafed, and Tylenol.
Market Cap – $326.6B
Earnings Per Share (EPS) – 5.37
Profit Margin – 21.20%
Long Term Debt/Equity – 0.3
Book Value per Share – 26.47
Dividend Yield – 2.68%
The Coca-Cola Company (KO)
Coca Cola, the most recognizable brand in its industry worldwide, is a beverage conglomerate. Notable brands under the company’s seal are Dasani, Fanta, FUZE, Glacéau Smartwater & Vitaminwater, Gold Peak, Minute Maid, Powerade, Schweppes, Simply, and Sprite.
Market Cap – $181.9B
Earnings Per Share (EPS) – 1.74
Profit Margin – 17.67%
Return on Equity (ROE) – 27.67%
Return on Investments (ROI) – 11.87%
Dividend Yield – 3.29%
McDonald’s Corp. (MCD)
McDonald’s is the global burger place that is nearly visited by all walks of life in many different countries. As of December 31, 2015, it operated 36,525 restaurants. Home of the Big Mac and the original dollar menu restaurant, the company continues to reinvent its brand.
Market Cap – $98.3B
Earnings Per Share (EPS) – 5.25
Return on Equity (ROE) – 84.51%
Return on Investments (ROI) – 15.11%
EPS Growth Year over Year – 21.71%
Dividend Yield – 3.05%
Microsoft Corporation (MSFT)
Microsoft reigns as the worldwide leader in software products for office and personal use. Known for the prominent Office catalog of applications, it also operates with Skype, SharePoint, and Client Access Licenses (CALs). Let’s not forget the Windows operating system, Bing, and XBOX.
Market Cap – $452.2B
Earnings Per Share (EPS) – 2.10
Long Term Debt/Equity – 0.6
EPS Growth Year over Year – 44.06%
5 Year Dividend Growth – 17.61%
Dividend Yield – 2.69%
Nike Inc. (NKE)
There’s no avoiding how badly the share price has been plummeting this year for the world’s largest sports apparel company. But it’s widely known that sliding prices brings buying opportunities. Competition has risen from Under Armour and Adidas, but Nike is such a heavy favorite it’s hard to see them overtaken.
Market Cap – $89.3B
Earnings Per Share (EPS) – 2.16
Long Term Debt/Equity – 0.2
Return on Equity (ROE) – 30.12%
Return on Investments (ROI) – 24.02%
Dividend Yield – 1.16%
Starbucks Corporation (SBUX)
Starbucks controls the coffee business, and might even simply control the mornings of many customers. The company also operates as a retailer of branded coffee for personal brewing and machinery. As of March 27, 2016, it operated 23,921 café locations.
Market Cap – $79.2B
Earnings Per Share (EPS) – 1.79
Return on Equity (ROE) – 46.11%
Return on Investments (ROI) – 29.01%
5 Year Dividend Growth – 30.45%
Dividend Yield – 1.48%
Visa Inc. (V)
Visa is one of the major payment transactional companies worldwide. VisaNet is a service that allows for authorization, clearing, and settlement of payments. It also offers assured payments for merchants and fraud protection for account holders.
Market Cap – $195.9B
Earnings Per Share (EPS) – 2.02
Profit Margin – 38.72%
Long Term Debt/Equity – 0.5
5 Year Dividend Growth – 30.88%
Dividend Yield – 0.68%
Verizon Communications Inc. (VZ)
Verizon is looking to become a multimedia juggernaut with the agreed deal to acquire Yahoo Inc. Its wireless segment is established as the superior telecommunication service available. While its FiOS brand is competing with Comcast as the top cable and internet provider.
Market Cap – $212.2B
Earnings Per Share (EPS) – 3.54
Profit Margin – 11.49%
Return on Equity (ROE) – 94.20%
EPS Growth Year over Year – 46.63%
Dividend Yield – 4.40%
Wells Fargo & Co. (WFC)
Although the mega bank is currently dealing with a fake customer set up scandal and the CEO is spending his last summer days on Capitol Hill, the production has been above its peers for years now. Its current troubles have dropped its share price, but the company is still on the trajectory of becoming the largest bank.
Market Cap – $228.6B
Earnings Per Share (EPS) – 4.05
Profit Margin – 25.84%
5 Year Dividend Growth – 49.13%
Book Value Per Share – 39.96
Dividend Yield – 3.37%