May stocks I selected finished down -2.98% loss. The market is still driven by interest rate fear and oil pushed down by a price war. All will end one day however and the stock will go back up. For June 2015 I have a new selection but the change from the previous month is small, so I decided not to rebalance my Motif Investing Fund.
I created a screener which browses my dividend stocks watch list consisting of about 200 dividend stocks (there are a few growth stocks too, however). Every month the screener selects stocks which are undervalued based on their P/E, PEG, current earnings and future earnings, and forward P/E among others and assigns a rank to each stock. The first 30 stocks are then selected for my portfolio.
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I buy those stocks in my Motif Investing account and rebalance every month (except June) by removing stocks which are no longer on the selected stocks list and add new stocks. You can see the April selection here.
I also use the screener to buy stocks in my ROTH IRA account. Unlike at Motif investing where I can buy fractional stocks and thus the entire portfolio of 30 stocks at once, in my ROTH IRA account I typically select a stock with the highest rank to add and invest the entire amount into that one stock.
For example, in April I could add a new stock into my ROTH IRA account as I saved $1,000 amount (a minimum amount to minimize negative effect of commissions). To decide which stock to buy I looked at my screener result and found out that ConocoPhillips (COP) had the highest rank as the most undervalued stock. So, I bought the stock.
And here is a new selection for June 2015:
You can buy this motif if you want if you open an account with Motif Investing. Then you can buy the entire portfolio the same way as a mutual fund – you buy all positions at once with minimum $250 investment. You will be buying fractional shares if you do not have large amount of money.
I purchased this motif myself to show confidence in my stock selection. You can open your account too and if you start investing, you will receive a $150 bonus from Motif Investing.
I am rebalancing this motif every month. Let’s see, how well this portfolio will do at the end of the year.
Good luck to all of you!
Previous selection :
Stocks to buy in January 2015
Stocks to buy in February 2015
Stocks to buy in March 2015
Stocks to buy in April 2015
Stocks to buy in May 2015
Your screening 200 stocks?! That makes my head spin just thinking of it. Good luck, I am having a hard time these days finding good values.
John,
yes I am screening 200 stocks. But I do not do it manually :) I created a screener which does it automatically for me, assigns a rank and sorts it, so I only look at the results and then manually review only a few high ranking stocks, maybe 2 to 5 stocks at most.
Thank you for stopping by and commenting.
Interesting comment about COP. I just wrote a post comparing the top 4 oil producing stocks on my blog.
I was a little skiddish looking at COP due to its low EPS estimate this year compared to its dividend. Don’t you think the massive Payout Ratio of a low EPS is a cause for concern?
Adam,
I don’t think COP has a massive pay out ratio. It is at 72% which is at the top of a level considered still save, but its 5 year average payout ratio is at 46%. So there may be some turbulence this year due to oil price drop, but overall (in the next 20 years) I do not think this is a concern.
Thanks for stopping by and commenting!
Hi Martin,
Hmm… not see where you are getting the 72%. I see about 52% for FY14 and the next 2 years EPS shows a growing trend but if dividends remain the same it will be a huge ratio. Anyway, not trying to be annoying. Just wondering if you were seeing something different is all.
I do agree with you that long term it probably isnt a concern and their past performance has been good.
Best of luck!
-Adam
Adam, I use dividendinvestor.com to pull data out. See the page here: http://www.dividendinvestor.com/?chk=fce211433967558&symbol=cop&submit=GO I believe that 72% is the current one (2015 YTD). I didn’t dig in that source deeply so I cannot say how accurate it is. the EPS itself is not important to me but its trend and that is, as you said, trending up (year over year). The EPS trend one of the feature of my screener.
And you are not annoying at all!
Thanks!