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Meridian Biosciences, Inc. (VIVO) Added to Own Every Stock Portfolio

Last week I added 5 shares of Meridian Biosciences, Inc. (VIVO) to the Own Every Stock Portfolio.  With the addition of (VIVO) the Own Every Stock Portfolio now has a total of 144 stocks representing 28 different countries throughout the world.  Meridian Biosciences is a small cap healthcare sector stock with a current market capitalization of around 810 million.  The company's core business is diagnostic test kits for a variety of diseases sold in several countries primarily located in North America and Europe.  In its most recent quarterly earnings, the company was able to boost profit by 10%, partially by test kits that detect the flu.  The shares of (VIVO) were added to the Own Every Stock portfolio at a cost of  19.66 per share.

Currently, Meridian Biosciences is trading at around 20 times earnings with zero long term debt and around 60 million in cash.  Last month, the company boosted its dividend 11.76% from $0.17 per quarter to $0.19 per quarter ($0.76 per year).  With its latest dividend increase, VIVO shares are now yielding just under 3.8%.  It is difficult to find a potential growth company with a solid dividend yield, but I believe Meridian Biosciences fits these two criteria nicely.  Add in the fact the company has no debt, and I am optimistic about the future prospects of the company.  Of course, my opinion is just that, an opinion, and should not be construed as an investment recommendation.  A person considering any investment should conduct their own due diligence or contact an investment advisor before making any investment decisions.

Annaly Capital Management Added to Portfolio

Last week, I added 6 shares of (NLY) Annaly Capital Management, Inc. to the portfolio at a price of $17.40 per share.  Basically, I added the stock to the portfolio because it has a ridiculously high dividend yield of over 17%.  While a dividend yield that high isn't likely to be sustainable long term, I thought I would pick up an amazing yield while I can.  Plus, Annaly Capital does have a nice dividend paying history, so even if the payout rate ends up being lower that its current rate, it is still likely to be a very good dividend.  Also, the company operates as a (REIT) real estate investment trust, which requires them to pay out at least 90% of its taxable income to its shareholders.

As it turns out,  Annaly's earnings slightly beat expectations yesterday after the bell, so I was able to get a little pop in the price I entered the stock at.  For the quarter, NLY earned $0.79 per share in core earnings per share, while they earned $1.31 per share on a GAAP basis.  How the company makes money can be a complex question, but basically the company invests in a variety of mortgage back investments and earns a return for its shareholders.  Leverage is a necessary tool for this type of company, but it has done a good job of managing its leverage to withstand the financial crisis that hindered or eliminated many similar type companies.  As of the end of 2009, Annaly Capital had a leverage ratio of 5.7 to 1.

Finally, NLY is only trading at a slight premium to its tangible book value.  However, this number can be very misleading when it comes to mortgage related investments.  What the mortgage securities are valued on the books at and what the true value of the mortgage securities are can vary considerable.  All we need to do to prove this point is look back at what some of the book values were before the housing meltdown happened and what their true value actually was.  Regardless, the Own Every Stock Portfolio had very little exposure to the REIT market, so I thought I would add (NLY) Annaly Capital Management, Inc. to the portfolio.  Once again, I encourage everyone to do their own due diligence before purchasing any investments as I am not making a recommendation but rather supplying information about my holdings in the Own Every Stock Portfolio.  Thanks for stopping by.

Stocks in Own Every Stock Portfolio Updated 1-25-10

It has been quite awhile since I have listed all the stocks within the Own Every Stock Portfolio.  On this report I also added a column of the total return of each stock since being added to the portfolio.  Unfortunately, there are a lot of red number in the portfolio as the overall return since beginning the Project is -4.48%.  There were a few times a couple weeks ago that the portfolio broke into positive territory, but it has since slid back into the red.  However, considering I started this project right before the financial crisis, I am fairly pleased with how well the overall portfolio has held up. 

Here are the current stocks in the Own Every Stock Portfolio (listed in alphabetical order by symbol):


Stock     
Symbol
# of Shares
Overall Return
 Alcoa, Inc.
    AA
    2.117
        -63.20%
 Abbott Laboratories
    ABT
    2.015
         25.31%
 Automatic Data Processing, Inc.
    ADP
    2.033
         19.28%
 Ameren Corporation
    AEE
    2.165
        -26.35%
 Amkor Technology
    AMKR           6.000
        -46.82% 
 American Express Company
    AXP        
    1.035
        -32.84% 
 Aircastle, Ltd
    AYR
    3.335
        -46.44% 
 Boeing Company
    BA
    1.056
        -33.59% 
 Bank of America Corporation
    BAC
    2.092
        -59.75% 
 BB&T Corporation
    BBT
    2.142
        -12.44% 
 Barclays PLC
    BCS
    3.112
        -39.27% 
 Briggs & Stratton Corporation
    BGG
    4.243     
         12.75% 
 B & G Foods
    BGS
    9.513
         15.92% 
 BH Billiton
    BHP
    1.000     
           7.55%
 Banco Latinoamericano de Comerico
    BLX
    6.063
           1.33%
 Bristol Myers Squibb Company
    BMY
    3.227
         30.82% 
 Burlington Northern Santa Fe Corporation     
    BNI
    1.030
         22.95% 
 BT Group, plc     
    BT
    2.251
        -35.35%
 Biovail Corporation
    BVF
    5.556
         42.90% 
 Boyd GamingCorporation
    BYD
    6.000
        -46.50%
 Citigroup, Inc.
    C           1.050
        -90.21%
 Cal-Maine Foods, Inc.
    CALM
    3.014
         39.30%
 Caterpillar, Inc.
    CAT
    1.064
        -12.57%
 Cato Corporation
    CATO
    4.032
          -1.96%          
 CBS Corporation
    CBS
    5.413
        -18.48%
 Cellcom Israel Ltd.
    CEL
    3.058
           6.51%
 CNOOC Ltd.
    CEO
    1.016
         26.77%
 Cognex Corporation
    CGNX
    5.168
           9.08%
 Cherokee, Inc.
    CHKE
    2.352
        -37.26%
 Bancolumbia S.A.          
    CIB
    3.041
         49.72%
 Cincinnati Financial Corporation
    CINF
    3.044
           5.41%
 Comerica, Inc.
    CMA
    2.091
           6.77%
 Centerpoint Energy, Inc.
    CNP
    5.429
         10.90%
 CPFL Energia S.A.
    CPL
    1.127
         26.33%
 Computer Programs & Systems, Inc.
    CPSI
    3.210
       139.01%
 Crane Company
    CR
    4.207
         94.85%
 Cisco Systems, Inc.
    CSCO
    4.000
         24.61%
 Centurytel, Inc.
    CTL
    4.168
         17.13%
 Chevron Corporation
    CVX
    1.056
          -3.31% 
 Cemex S.A.B de C.V.
    CX
    3.000
        -55.11% 
 Duetsche Bank AG
    DB
    1.008
        -36.04% 
 DuPont de Nemours and Company
    DD
    1.091     
        -25.87% 
 Deere & Company     
    DE
    1.034     
        -22.83% 
 Diageo          DEO
    1.068    
        -10.89% 
 Walt Disney Company     
    DIS
    2.056
        -11.60% 
 Deluxe Corporation
    DLX
    5.569
         20.91%
 Dow Chemical Company
    DOW
    2.149
        -13.30% 
 Diana Shipping, Inc.
    DSX
    2.247
        -41.55% 
 DTE Energy Company
    DTE
    1.097
          -1.49% 
 ENI SpA
    E
    2.044
           6.85%
 American Ecology Corporation
    ECOL
    5.103
          -8.80%  
 Consolidated Edison, Inc.
    ED
    2.056
         19.39%
 Eastman Kodak Company
    EK
  20.000
           3.52%          
 Eaton Corporation
    ETN
    1.064
        -25.80% 
 Entergy Corporation
    ETR
    1.057
        -18.79% 
 Corporate Executive Board Company
    EXBD
    2.130
        -10.76%
 France Telecom ADS
    FTE
    3.000
          -9.08%
 General Electric     
    GE
    1.092
        -53.16% 
 Gold Fields, Ltd.
    GFI
    5.145
        -10.13% 
 General Motors Corporation
    GM
    2.000
        -95.45% 
 Genuine Parts Company
    GPC
    3.000
          -0.34% 
 Great Plains Energy, Inc.
    GXP
    3.280
        -24.80% 
 Home Depot, Inc.
    HD
    2.107
          -5.93% 
 Honda Motor Company, Ltd.
    HMC
    3.072
         24.56%
 HJ Heinz Company
    HNZ
    2.136
           3.44%
 Honeywell International, Inc.
    HON
    1.054
        -27.21% 
 Hewlett Packard Company
    HPQ
    1.013
           0.20%
 International Business Machines
    IBM
    1.030     
         14.10%
 ING Groep, NV     
    ING
    2.058
        -69.01% 
 Intel Corporation
    INTC           2.102
        -16.89% 
 Johnson & Johnson
    JNJ
    3.098
         24.42%
 JP Morgan Chase & Company
    JPM
    1.028
          -6.21% 
 Kraft Foods, Inc.
    KFT
    2.132
          -7.06% 
 Kimberly Clark Corporation
    KMB
    1.066
           3.65%
 Coca-Cola Company
    KO
    1.049
           2.75%
 Leggett & Platt, Inc.
    LEG
    5.130
         16.61%
 LAN Airlines
    LFL
    5.230
         20.51%
 Eli Lilly & Company
    LLY
    3.041
           5.96%
 Life Partner Holdings, Inc.
    LPHI
    5.062
         12.57%                   
 Lloyds TSB Group
    LYG
    3.686
        -75.91%  
 Marriott International
    MAR
    2.031
        -23.34%  
 Masco Corporation
    MAS
    4.299
        -16.86%  
 Mattell, Inc.
    MAT
    5.443
         24.63%
 McDonald's Corporation
    MCD
    1.052
         23.39%
 Microchip Technology, Inc.
    MCHP
    2.160
        -10.82%  
 3M Company
    MMM
    1.049
           1.79%
 Altria Group, Inc.
    MO
    1.122
         15.62%
 Merck & Company, Inc.
    MRK
    1.077
        -16.97%  
 Marathon Oil Corporation
    MRO
    3.102
         21.57%
 Microsoft Corporation
    MSFT
    2.067
        -11.81%  
 Magyar Telekom Telecommunications
    MTA
    3.381
          -1.27%  
 Nokia Corporation
    NOK
    6.000
        -16.10%
 Newell Rubbermaid, Inc.
    NWL
    4.240
        -14.42%  
 Telecom Corporation of New Zealand
    NZT
    4.526
        -38.30%  
 Paychex, Inc.
    PAYX
    2.136
          -1.32%  
 Pitney Bowes, Inc.
    PBI
    4.125
          -0.07%
 Southern Copper Corporation
    PCU
    3.218
         19.68%
 Pepsico, Inc.
    PEP
    1.046
        -16.94%  
 Pfizer, Inc.
    PFE
    2.193
        -13.43%  
 Procter & Gamble Company
    PG           1.045
          -8.35%  
 Progress Energy, Inc.
    PGN
    2.064
           7.61%
 Phillippine Long Distance Telephone Co. 
    PHI
    2.000
         15.11%
 Packaging Corporation of America
    PKG
    3.223
          -4.59%         
 Phillip Morris International
    PM
    1.079
           7.76%
 Pepco Holdings, Inc.
    POM
    7.235
         31.45%         
 Prudential Financial, Inc.
    PRU
    1.034
        -31.89% 
 Patterson-UTI Energy, Inc.
    PTEN
    8.244
         77.20%
 Qualcomm, Inc.
    QCOM
    2.047
         18.56%
 Reynolds American, Inc.     
    RAI
    1.125
        -10.33% 
 Companhia Siderurgica Nacional
    SID
    2.143
        -24.80% 
 Sara Lee Corporation
    SLE
    6.383
           -0.11% 
 Sasol, Ltd.
    SSL
    2.144
        -14.00% 
 Sovran Self Storage, Inc.
    SSS
    2.220
        -13.41% 
 Banco Santander, Ltd.
    STD
    4.371
        -23.30% 
 Sysco Corporation     
    SYY
    3.180
          -2.03% 
 AT&T, Inc.
    T
    1.081
        -31.95% 
 TAL International Group, Inc.
    TAL
    3.107
        -35.68% 
 Integrys Energy Group, Inc.
    TEG
    1.120
          -6.10%
 Turkcell Iletisim Hizmetleri
    TKC
    5.000
         12.55%
 Tomkins
    TKS
    5.423
           1.70%
 Tele Norte Leste Participacoes S.A.
    TNE
    5.000
          -5.38%
 Travelers Companies, Inc.
    TRV
    2.025
         17.38%
 Telecomunicacoes De Sao Paulo
    TSP
    3.358
         12.07%      
 Tata Motors, Inc.     
    TTM
    5.043
         10.41%
 Textron, Inc.
    TXT
    4.096
         29.33%
 United Technologies Corporation
    UTX
    1.043
          -2.72% 
 Vector Group, Inc.
    VGR
    4.693
          -1.55%          
 Vimpel Communications
    VIP
    3.039
        -39.22%
 Verizon Communications
    VZ
    1.078
        -18.34%
 Wells Fargo & Company
    WFC
    3.182
         14.07%
 Whole Foods Market, Inc.
    WFMI
    2.000
        -13.37%
 WSP Holdings, Inc.
    WH
  16.050
        -47.69%          
 Windstream Corporation
    WIN
    7.056
           0.36%
 Waste Management, Inc.
    WMI
    2.115
          -0.41%
 Walmart Stores, Inc.
    WMT
    1.029
         22.31%
 Worthington Industries, Inc.
    WOR
    5.334
        -16.19%
 Aqua America, Inc.
    WTR
    5.231
           5.92%
 World Wrestling Entertainment, Inc.
    WWE
    4.722
           2.03%
 Weyerhaeuser Company
    WY
    1.049
        -38.35%
 Xcel Energy, Inc.
    XEL
    3.236
         10.85%
 Xilinx, Inc.
    XLNX
    3.128
           8.03%
 Exxon Mobil Corporation
    XOM
    1.034
        -24.57% 

Coca Cola Company's Historical Dividends

The Coca Cola Company (KO) has been another consistent stock performer in the Own Every Stock Portfolio.  Year after year, Coke continues to produce steady revenue and profits, while increasing their stock dividend every year.  However, unless the company's fourth quarter widely beats expectations, Coke will have its first year over year drop in revenue in many years.  Nevertheless, one of the world's most well know logos and brands, Coca Cola, has held up much better than most companies through the recession.  Over the past several months, KO stock has steadily climbed, continually making new 52 week highs along the way.  Today, Coke's stock closed at 59.11 after reaching an intra-day high of 59.40, both of these respective numbers represent the stock's 52 week highs.  The stock may be getting a little ahead of its self fundamentally, but solid earnings growth are expected in 2010, so expect the forward looking PE number to gradually move down unless the stock price continues to soar.  Even at its current levels, Coca Cola's stock is priced at a very similar valuation to its nearest competitor, Pepsi.

Of course, another reason investors have liked Coke's stock over the years is its consistent dividend growth.  For the past 47 years, The Coca-Cola Company has raised its dividend every year.  In the chart below, I went back to 1975 to show what the split adjusted annualized dividend was and the subsequent dividend percent increase amount.  Since 1975, KO stock has had 5 stock splits, turning every share a person owned in 1975 into 48 shares today.  In 1996, 1992, 1990, and 1977, Coke's stock had 2 for 1 splits, while in 1986 the stock split 3 for 1.

The Coca Cola Company's Historical Dividend Increases (split adjusted)


Year
Yearly Dividends
           Paid
Year over Year
   % Increase
Year
Yearly Dividends
           Paid
Year over Year
   % Increase
1975          $0.0479                         
1993
         $0.34
         21.43%
1976
         $0.0552
         15.24%
1994
         $0.39
         14.71%
1977          $0.0642
         16.30%
1995
         $0.44
         12.82%
1978
         $0.0725
         12.93%
1996
         $0.50
         13.64%
1979
         $0.0817
         12.69%
1997
         $0.56
         12.00%
1980
         $0.09
         10.16%
1998
         $0.60
           7.14%
1981
         $0.0967
           7.44%
1999
         $0.64
           6.67%
1982
         $0.1033
           6.83%
2000
         $0.68
           6.25%
1983
         $0.1117
           8.13% 
2001
         $0.72
           5.88%
1984
         $0.115
           2.95%2002
         $0.80
         11.11%
1985
         $0.1233
           7.22%2003
         $0.88
         10.00%
1986
         $0.13
           5.43%2004
         $1.00
         13.64%
1987
         $0.14
           7.69%2005
         $1.12
         12.00%
1988
         $0.15
           7.14%2006
         $1.24
         10.71%
1989
         $0.17
         13.33%
2007
         $1.36
           9.68%
1990
         $0.20
         17.65%
2008
         $1.52
         11.76%
1991
         $0.24
         20.00%
2009
         $1.64
           7.89%
1992          $0.28
         16.67%
   


Moving forward, I expect The Coca Cola Company to continue to steadily grind its way forward with improving earnings and yearly dividend hikes.  One potential road block for the company could be a proposed tax on soft drinks.  However, just as the tobacco companies continue to pass the taxes on to the consumer, I would expect the large beverage companies to do the same.  At some point, higher prices may lessen demand, but the energy drinks don't seem to have a problem selling product at higher prices, albeit, not at the quantity Coke's sells its name brand soda.  Thanks for stopping by my blog, and please be sure to due your own investment research before making any investment decisions.

General Electric: The Last of the Big Conglomerates

When General Electric Company was added to the Own Every Stock Portfolio a couple years ago, the financial markets were a much different environment than the investment landscape today.  Back then, General Electric was considered a good barometer of the overall market because the large conglomerate's business was thought to be diversified across many different sectors of the economy.  To some extent, that premise was true, but what wasn't factored in, was how one arm of the business (GE Capital) could severely damage and bring down the overall profits and stability of the company as a whole.  In fact, the losses from the GE Capital arm aren't expected to stabilize and reverse course until 2011.  In addition, the losses from the financing arm were so detrimental to General Electric that earlier this year the company was forced to forgo its annual dividend increase and instead cut its dividend by nearly 70% down to $.10 per quarter from $.31 per quarter.

However, GE has begun to change its focus from a large conglomerate back to its core industrial strengths.  For example, GE recently announced it is selling 51% of its stake in NBC to Comcast for an estimated 30 billion dollar overall transaction.  I wouldn't expect the company to divest too much of its assets, but I do expect the growth to come from its core businesses.  A good example is the 14 billion dollar wind generation project in Oregon, GE was just awarded.  General Electric will remain a big conglomerate, but I expect its major revenue and earnings drivers to be from its industrial businesses.

From a technical standpoint, GE's stock has bounced off its bottom channel while trending up from its March low of around $6 to its current level of around $16.  However, the channel has been narrowing suggesting a breakout move in one direction.  Up the upside, I would look for a confirmed breakthrough of the 17.50 to 18.00 range.  18.45 is the current 52 week high and the stock hit some strong resistance in September when it tested the 17.00 to 17.50 range before receding to the $14 support level and bouncing up to its current levels.  For the past month, GE has been oscillating around the $16 level in a consolidating fashion similar to the overall market.  I expect more consolidation to occur before a test and breakthrough of either resistance or support.  Personally, I would wait for confirmation of direction before making a shorter term trade in either direction.  Over the long term, I expect General Electric to continue growing its core business eventually improving revenue, earnings, and its stock price.

Disclaimer:  My opinions should not be viewed as a recommendation to buy or sell General Electric and is intended only for informational purposes.  Please conduct your own due diligence before making any investment decision.

Best Dividend Yields in the Portfolio

Today, I put together a spreadsheet with the dividend yield of all 141 stocks within the Own Every Stock Portfolio.  Currently, only 9 stocks within the portfolio do not pay a dividend, and 35 stocks are producing a dividend of over 5%.  However, I am going to group the stocks into two categories:  Domestic stocks and foreign stocks issued as ADRs on a U.S. Exchange.  All the dividend yields on the U.S. companies are based on their current dividend payout while the foreign based companies are based on the dividend payments made in 2009.  It is much more difficult to forecast upcoming dividends on foreign stocks, because the amounts will vary from year to year and often times special dividends are paid in addition to regular dividends.  In addition, the top few dividend yields on the foreign stocks listed are likely to be cut or significantly reduced in 2010, especially Lloyd's Banking Group and WSP Holdings.  Here is a chart with the 35 stocks within the Own Every Stock Portfolio currently earning more than a 5% dividend yield based on today's closing prices.


Domestic Stocks
Symbol
 Dividend
     Yield 
         Foreign Stocks
Symbol
  Dividend
      Yield
Cherokee, Inc.
  CHKE
  11.76%Lloyds Banking Group
    LYG
     32.02% 
Windstream Corp.
  WIN  
    9.17%
WSP Holdings Ltd.
     WH
     22.26%
World Wrestling
Entertainment, Inc.
  WWE
    8.78%
Tele Norte Leste Part.
    TNE
     11.88%      
B & G Foods, Inc.
  BGS
    7.82%
France Telecom
    FTE
       9.86%
Centurytel, Inc.
  CTL
    7.81%
Cellcom Israel
    CEL
       9.68%
Deluxe Corporation 
  DLX
    7.28%
Magyar Telekom
    MTA
       9.26%
Altria Group, Inc.
  MO
    7.02% Telecom Corp of New Zealand
    NZT        9.13%
Reynolds American, Inc. 
  RAI
    6.81%
Philippine Long Distance
    PHI
       6.46%
Integrys Energy Group, Inc. 
  TEG
    6.56%
CPFL Energia SA
    CPL
       5.89%
Pepco Holdings, Inc.
  POM
    6.40%
Banco Santander SA 
    STD 
       5.33%
Pitney Bowes, Inc.
  PBI
    6.40%
Telecom de Sao Paulo SA
    TSP
       5.22%
Cincinnati Financial Corp.
  CINF
    6.19%
Turkcell Iletisim Hizmetleri
    TKC
       5.00%
Progress Energy, Inc.
  PGN
    6.02%
   
AT&T, Inc.
    T
    5.95%
   
Ameren Corporation
  AEE
    5.75%
   
Verizon Communications
  VZ
    5.71%
   
Sovran Self Storage, Inc.
  SSS
    5.48%
   
Centerpoint Energy, Inc.
  CNP
    5.47%
   
Eli Lilly & Company
  LLY
    5.36%
   
Consolidated Edison, Inc.
  ED
    5.34%
   
Leggett & Platt, Inc.
  LEG
    5.21%
   
DuPont de Nemours & Co.
  DD
    5.19%
   
Life Partners Holdings, Inc.
  LPHI
    5.15%
   

Johnson & Johnson Stock Review and Dividend History

Johnson & Johnson was the third stock I added to the Own Every Stock Portfolio a couple years ago and it has generated a nice return so far.  I also added more shares of JNJ with the cash I received with the cash buyout  of Mentor Corporation (another company that was in the portfolio) by Johnson & Johnson.  In addition to its share appreciation, JNJ has a long history of big dividend increases.  In fact, since 1975, the company has raised its yearly dividend by more than 10% every year with 4 exceptions still averaging well over an 8% increase.  Long term shareholders of JNJ have also seen the number of shares they hold compound with 5 stock splits over the past 25 plus years.  Johnson & Johnson's most recent stock split came in 2001 when the stock split 2 for 1.  In addition, JNJ also had 2 for 1 stock splits in 1996, 1992, and 1989, while in 1981 the stock split 3 for 1.  From the stock splits alone, 100 shares of JNJ purchased before 1981 would have grown into 4800 shares today and this doesn't even account for dividends.

More recently, JNJ has seen its stock rally from its March low of $46.25 to a new 52 week high of over $65 last week.  Even with the recent gains, the stock is trading at pretty fair valuation with a PE around 13 to 14, depending on whether you choose to use the forward or trailing price earnings ratio.  JNJ is also yielding a very respectable 3% from its current dividend payout, and barring an unforeseen disaster, one can expect another dividend increase before its second dividend payment in 2010.  The chart below demonstrates the consistency of Johnson and Johnson's dividend increases since 1975.  All dividends have been adjusted for stock splits.


Year
Yearly Dividends
         Paid
Year over Year
    Increase
Year
Yearly Dividends
         Paid
Year over Year
    Increase
1975 
      $0.0177     
1993 
      $0.2525      13.48%
1976
      $0.0219      23.73%1994
      $0.2825      11.88%
1977      $0.0292      33.33%1995
      $0.3200      13.27%
1978      $0.0354      21.23%1996
      $0.3675      14.84%
1979
      $0.0417      17.80%1997
      $0.4250      15.65%
1980
      $0.0464      11.27%1998
      $0.4850      14.12%
1981
      $0.0532      14.66%1999
      $0.5450      12.37%
1982
      $0.0606      13.91%2000
      $0.6200      13.76%
1983
      $0.0672      10.89%2001
      $0.7000      12.90%
1984
      $0.0734        9.23%
2002
      $0.7950      13.57%
1985
      $0.0797        8.58%
2003
      $0.9250
      16.35%
1986
      $0.0859        7.78%2004
      $1.0950      18.38%
1987
      $0.1006      17.11%2005
      $1.2750      16.44%
1988
      $0.1200      19.28%2006
      $1.4550      14.12%
1989
      $0.1400      16.67%2007
      $1.6200      11.34%
1990
      $0.1638      17.00%2008
      $1.7950      10.80%
1991
      $0.1925      17.52%2009
      $1.9300        7.52%
1992
      $0.2225      15.58%
   


In addition to its exceptional dividend history, Johnson & Johnson is also sitting on over $14 billion in cash which puts in a good position to make key acquisitions when the right opportunity arises.  Moving forward I like the long term prospects of JNJ stock and I expect it to continue to earn a steady return for the Own Every Stock Portfolio.  Of course, my opinion shouldn't be viewed as a recommendation and a person should complete their own due diligence before purchasing any investment.

Citigroup, Inc: Former Dow Component to a Penny Stock

Unfortunately, Citigroup, Inc. was the second stock I purchased in the Own Every Stock Portfolio.  This purchase was made back when Citigroup was part of the Dow Jones and actually making money.  Since then, the stock has fallen out of the Dow Jones Industrial Average, and as of today's close, is now below $4.00 per share.  As a result, Citigroup has been one of the worst performing stocks in the portfolio and the immediate future doesn't look much better.  After Bank of America's recent repayment of the TARP funds, Citigroup is under even more pressure to repay the TARP money to the government themselves or face increased pressure on their already depressed stock price.

In late August, Citigroup's stock briefly popped above $5 a share, but since then the stock has meandered steadily downward to its current price of $3.91 per share.  Fortunately for me, Citigroup now makes up such a small percentage of the portfolio, that even if the stock were to become worthless, it is nearly irrelavent to my overall return in the portfolio.  I really don't have very much positive to say about this stock; technically it looks weak, fundamentally it is weak, and it pays a whopping dividend of $.01 per quarter.  I imagine at some point it will begin to make money again, but if I were investing in Citigroup, I would prefer to wait until it shows some signs of being able to consistently make money again.  Another step in the right direction would be repaying its TARP money to the government.

Of course, short term traders may be able to take some profits from the day to day price swings, but this blog's focus is on buying and holding small quantities of a wide array of stocks.  Therefore, I will leave the in and out quick trades to websites dedicated to that type of trading style.  Again, I am simply giving my insights on the stocks in the Own Every Stock Portfolio.  Please due your own due diligence or contact an investment adviser before making any investment decisions.

Verizon's Dividend History

Verizon Communications (VZ) was the first stock I added when I started the Own Every Stock Portfolio a couple years ago, and part of the reason was due to its attractive dividend yield.  Over the last month, Verizon's stock has had a nice run moving from 29 to around 33.50.  Even with the recent run up, Verizon currently has one of the best dividend payouts of the 30 stocks within the Dow Jones Industrial Average.  Based on its current quarterly dividend of 47.5 cents, Verizon pays out $1.90 per share each year, equating to a dividend yield of 5.7%.  This represents a 137.5% increase from its yearly dividend payout  of $.80 per share, 25 years ago, back in 1984. 

While this is an impressive increase in per share dividends, much of this came from the 14 consecutive dividend increases from 1985 to 1998.  From 1999 to 2006, Verizon only had one dividend increase with a 5.19% hike in 2005.  However, in recent years it appears that Verizon has started to implement yearly dividend increases again with 2010 likely being the 4th year in a row of increasing dividends (based on the announced dividend increase in September of this year).  Here is a chart summarizing Verizon's dividend payout of the past 25 years:


 Year
Dividends Paid
Year over Year Increase
 1984          $0.80 
 1985          $0.85         
                6.25%
 1986          $0.90
                5.88%
 1987          $0.96
                6.67%               
 1988          $1.02
                6.25%
 1989          $1.10
                7.84%
 1990          $1.18
                7.27%
 1991          $1.26
                6.78%               
 1992          $1.30
                3.17%
 1993          $1.34
                3.08%
 1994          $1.38
                2.99%               
 1995          $1.40
                1.45%         
 1996          $1.44
                2.86%
 1997          $1.51
                4.86%
 1998          $1.54
                1.99%
 1999          $1.54
                0.00%              
 2000          $1.54
                0.00%
 2001          $1.54
                0.00%              
 2002          $1.54
                0.00%
 2003            $1.54
                0.00%
 2004          $1.54
                0.00%         
 2005          $1.62
                5.19%
 2006          $1.62
                0.00%
 2007          $1.67
                3.09%
 2008          $1.78
                6.59%
 2009          $1.87
                5.06%

Of course, dividends aren't the only criteria when selecting stocks, but over time they do add substantially to a portfolio's overall returns, especially when the dividends are reinvested.  As part of my upcoming posts, I plan to go through my list of stocks in the portfolio and have an entry pertaining to each stock.  Some entries will be about dividends, while other entries will look at fundamental or technical analysis.  Basically it is a good way for me to revisit the stocks in the Own Every Stock Portfolio and hopefully I can provide a little useful information to others along the way.  As is always the case, I am not making any stock recommendations but just providing my opinion (which is worth exactly what you paid for it) and/or historical data on different stocks within my overall portfolio.  Thanks for stopping by, hope you find time to stop by again.

Stock Returns by Sector in Own Every Stock Portfolio

Based on the stocks within the Own Every Stock portfolio, 5 of the 9 major stock sectors now support positive overall returns.  Not surprisingly, the worst performing sector in the portfolio has been the financial sector.  However, I am surprised that the best performing sector for the portfolio has been the health care sector.  Unfortunately, the health care sector only represents 6.50% of the overall portfolio based on today's closing values.  The other positive returning sectors thus far are the conglomerates, utilities, basic materials, and consumer goods sectors.  The technology sector is also very close to breaking into positive territory.  Below is a chart of the overall sector returns based on the stocks within the portfolio.  Keep in mind, these returns are total returns from when the stock was originally added to the portfolio.  The total current value represents the value of the current shares plus dividends received but not reinvested.


 Sector# of Stocks
Amount Invested
Total Current Value
Gain/(Loss)
% Gain/(Loss)
 Health Care            7
         $572.56
              $669.51
    $96.95
         16.93%
 Conglomerates            6
         $388.33
              $401.38
    $13.05
           3.36%
 Consumer Goods
         23
       $1672.53            $1711.23    $38.70
           2.31%
 Utilities          12
         $872.19
              $887.73
    $15.54
           1.78%
 Basic Materials
         17
       $1427.20            $1428.93
      $1.73
           0.12%
 Technology          26
       $2031.04
            $2005.39
   ($25.64)
          (1.26%)
 Services          19
       $1342.63
            $1298.89
   ($43.74)
          (3.26%)
 Industrial Goods
         11
         $833.99
              $667.35
 ($166.64)        (19.98%)
 Financials          19
       $1553.24
            $1224.54
 ($328.70)
        (21.16%)
 Other
(former GM Stock)
           1           $50.54                   $2.20   ($48.34)
        (95.65%)
 Totals      141   $10,744.25         $10,297.14 ($447.10)          (4.16%)

After determining each sector's current value, I also calculated the percentage each sector represents in the overall Own Every Stock Portfolio. Here is the breakdown of each sector's percentage of the total portfolio based on today's closing prices.


Sector
% of Total Portfolio
      Technology
                               19.39%
      Consumer Goods                                         16.61%
      Basic Materials
                               13.95%
      Services                                12.65%
      Financials                                11.83%
      Utilities                                 8.69%
      Health Care
                                 6.50%
      Industrial Goods
                                 6.47%
      Conglomerates                                  3.90%
      Other                                  0.01%