Invest With A Plan In 2018
Today is my 45th birthday! Only 25 more years to go until my retirement.
As a gift to myself, I have spent some time on my financial goals for the year and researched which dividend paying stocks I need to purchase before others on my Stock Buy List. Here is my simple 7 step process:
Step 1 - Create a Stock Buy List of all the dividend paying stocks you want to own for the long term. (My Stock Buy List)
Step 2 - Create a Stock Screen to narrow down the best of the best stocks from your Stock Buy List. My Screen Criteria:
- Dividend Yield > 1.50%
- Price To Earnings < 30
- Years Dividend Growth > 5
- Dividend Payout Ratio < 80%
- Annual Dividend > $1.50
- Run your Stock Buy List through your Stock Screen to shorten your Stock Buy List.
My Stock Buy List went from 156 stocks to 57 stocks.Step 4
- Research and compile the worst 5 stocks of the Dow Jones Industrial Average for the past 3 years.
- 2017 5 worst stocks of the Dow: GE, IBM, MRK, XOM, VZ
- 2016 5 worst stocks of the Dow: DIS, HD, KO, NKE, V
- 2015 5 worst stocks of the Dow: AXP, CAT, CVX, UTX, WMT
I have two companies in both my screened Stock Buy List and Worst Dow stocks - IBM and VZ.Step 5
- Compare your shortened screened Stock Buy List with the Dividend Kings List and extract matching stocks from both. I have 9 stocks in both lists. 3M, CL, GPC, HRL, JNJ, LOW, PG, TGT and VVCStep 6
- List all stocks that are in the same sector and remove the competitors that have the lower market cap. My list now has just 7 stocks 3M, GPC, IBM, JNJ, PG, VVC and VZ.Step 7
- Purchase your stocks starting first with the one priced closest to its 52 week low. My full position for a purchase will be $3,000 per stock.
Here are my next stock buys: