One week from now, I will be posting a new update to the Ultimate Sustainable dividend portfolio and I will likely be adding a new name to the current list. Today, I spent a few hours in order to find a new candidate that could be added to the current list. The goal remains to find stocks that have high growth in sales, earnings and dividends that can be sustainable over 10 or 20 years at a minimum. Obviously, as times goes by, circumstances can change but having a good starting point is certainly a key. I can then adjust things as needed. I will also try to find names that have an international component and that ideally brings diversification to the 20 names I already own.
When I looked for stocks listed on the NYSE and on Nasdaq that would fit all of this, I was left with 11 names after doing some analysis:
Yanzhou Coal Mining Co Ltd (YZC)
Ensco PLC (ESV)
RPC Inc (RES)
Invesco Ltd (IVZ)
Teva Pharmaceutical Industries Ltd (TEVA)
Herbalife Ltd (HLF)
Textainer Group Holdings Ltd (TGH)
Sunoco Logistics Partners LP (SXL)
WPP PLC (WPPGY)
Intel Corp (INTC)
Occidental Petroleum Corp (OXY)
Off the bat, I decided to remove several of them:
YZC – I prefer staying away from Chinese names for now
HLF – too much controversy and risk associated with Herbalife
WPPGY – no pink stocks
INTC & OXY – already part of the USDP
As I’ve also disclosed in the past, I do feel like I have sufficient exposure to the energy sector for now so will remove ESV and RES. SXL, which operates pipelines is a bit limit but I will leave it for now. Here are the 4 names that I’m looking at. I will thus look at these 4 names using the top 20 things I look at when judging dividend stocks, here are the highlights:
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I guess it then becomes a matter of opinion but given my current portfolio, my top pick would be either Invesco Ltd (IVZ) or Sunoco Logistics Partners LP (SXL). Why? They simply don’t have much in terms of weaknesses.
Which of these names would you prefer to own? I’ll likely add one of these names next week in my USDP update so stay tuned!