After winning the stock picking competition in 2009, 2010 ended up being a fairly big disappointment so I’m looking forward to the new challenge of picking 4 stocks that will do well in 2011. If you are a regular reader of IntelligentSpeculator, you have certainly noticed the growing importance of dividend stocks on our blog. I am a big believer in passive income, in the lifestyle that it can provide and the growing importance of having steady cash inflows. I have written quite a bit about dividend stocks and the things I look for when selecting them. Thus, I will be taking 2 dividend stocks in this year’s picks.
I did an extensive analysis in a recent newsletter but basically this stock has a lot going for it. The company has strong fundamentals, solid products such as Kleenex & Huggies) and has been constantly increasing its dividend. It does look like a winning stock to me and while I do not expect huge returns, I would expect the return to be well above average in 2011 and that is exactly what I’m looking for.
Last November, I did an analysis of two very strong dividend stocks; Coca-Cola (KO) and Pepsi (PEP). Pepsi won that contest fairly easily and has also come up a few times in the more detailed stock analysis that are published each month in our free newsletter. Because of that, I have decided to go long on Pepsi (PEP) also expecting the stock to outperform the market in the next few years. Pepsi has continued to be agressive in acquisitions with a recent acquisition in Russia.
CTrip trades at a decent P/E ratio of 27 despite having annual growth over 30%.. I think the company is well positioned as a leader in online travel in China, one of the biggest growth markets for travel right now in the world.
I have not always been the most vocal supporter of Amazon in recent years and have pointed to some things I would change if I were CEO Jeff Bezos. That being said, the Kindle has been more successful than many including myself had predicted and while the strategy is not perfect, I think the company will be able to keep up the strong growth in revenues and earnings.
You can find the stock picks from competing blogs just below! Links will be added as I receive them!
Blog 2009 rank 2010 rank
DividendGrowthInvestor 6 3
The Wild Investor 2 1
WheredoesallmyMoneygo 3 2
My Traders Journal 8 5
Million Dollar Journey 7 6
Money Smart Blog 5 9
The Financial Blogger 4 8
BeatingTheIndex N/A N/A
IntelligentSpeculator 1 7