(One edit note. We have enabled the mobile version of our blog for our mobile readers. Hope you like it. )
A new year and a significantly trimmed down list of trading stocks. When faced with the uncertainly going forward in 2012 we consider it prudent to reduce risks in stock selection, but do expect an above average performance for the coming year. We are now down to only 15 stocks in the portfolio from around 25 normally.
AGNC...Agency reit that should perform well in 2012, plus big dividends to add to the cash flow. as I opined in a earlier posting with the federal reserve buying MBS securities there should be a floor in this stock. Agency reits are one of the few areas left that are in my opinion undervalued.
BCE...Canadian telecom that continues to reward investors with shareholder friendly dividends and stock buyback's. I like owning companies in our business friendly northern neighbor away fromObama's non business friendly policies.
CTL...An excellent choice for capital gains going forward. This stock pays above average dividends and one should eventually be rewarded with price appreciation as well. Note the the federal government is activity supporting their rural business ventures with incentives.
DUK...I continue to expect once this company is merged with Progress Energy the merger savings will produce nice added profits and dividends. Look forward to having a CEO with some smarts too. Current price is fully fairly priced.
ERF..Despite the pullback in price this stock continues to pay above average monthly dividends. Add in that it is domiciled in Canada and I like it even more. I took a loss in this stock at year end to gain back the oil premium in options going forward. Priced fairly with anticipated appreciation.
GG...Gold stock that tracks the gold market well, has a nice monthly dividend and a very low less that $300 per ounce cost of production. Headquartered in Canada too. My expectation is for dividends to be increased significantly this year resulting in capital appreciation.
HCN..Healthcare reit that has done well in assembling a nice set of assets. It seems to have stabilized around $50 or so and the only worry is what could happen with Medicare payout's.
JNK...High yielding ETF that continues to produce good income and solid option premiums. Carryover holding from 2011 that should perform well in 2012.
LO..Currently largest holding and has been so for some time. Good dividend income and continued high option premiums. Another government protected monopoly. Only worry is the pending menthol status, but as long as Obama needs black votes we should be fine. Note that I have dumped all other tobacco stocks due to price appreciation.
NNN...This stock held up better than any non utility I have in the portfolio. It's holdings of solid retail real estate keeps on producing rents and profits for shareholders. Might be a bit undervalued.
O...This little baby just keeps on producing dividends, increasing them quarterly, and adding additional bang with option income.
PFF...This ETF has been beaten down significantly over the last year due to it's holdings of bank stocks. But note these holdings are PREFERRED stock. There is some risk here with Europe, but I believe some exposure is acceptable.
SO..Still commands a higher PE than most utilities since it is in my opinion one of the safest holdings on the planet. Careful buying at a lower price is suggested.
T...Despite our concerns over the merger being canceled we begin AT&T is a core holding. Also with all the hoopla over Verizon being the better company the market still values T as a 55% larger market capitalization than VZ. Note if Obama is not reelected AT&T can reapply for the merger.
WIN...We continue to hold this stock in a portfolio that is not part of the STI hedge fund, but wanted to acknowledge the holding for full disclosure. This company continues to produce nice dividends and we look at it as a long term holding.
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