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Post by chang on Dec 9, 2022 13:08:40 GMT
Starting a thread which I hope will be continued over time. Earlier this year I created an equity portfolio at a European bank for various reasons (mainly I needed to have a certain minimum investment to maintain the relationship, and there were no FI options that could even remotely compare to my options in the US; there are no viable mutual fund or ETF options either — just individual company stock).
Because I pay commissions for buying and selling, this is a true buy-and-hold-forever portfolio. Also, I am using the dividend income for living expenses.
(Note that I can buy stocks in this account which are traded on any exchange in the world except the US.) Accordingly, my criteria are:
- Stable, profitable, blue chip, wide moat, low beta companies, that you can hold forever and sleep easy.
- Dividend payers, preferably with a yield over 4%.
I own Nestle, Novartis, Roche, Shell, TotalEnergies, Sanofi, Novo Nordisk, ING, UBS, Rio Tinto, and Equinor.
I still have some cash to deploy, though I’m in no hurry to do so. I can add to what I own, or add a new position.
Please feel free to share your foreign divvy-paying stock ideas here.
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Post by win1177 on Dec 9, 2022 14:08:07 GMT
Starting a thread which I hope will be continued over time. Earlier this year I created an equity portfolio at a European bank for various reasons (mainly I needed to have a certain minimum investment to maintain the relationship, and there were no FI options that could even remotely compare to my options in the US; there are no viable mutual fund or ETF options either — just individual company stock). Because I pay commissions for buying and selling, this is a true buy-and-hold-forever portfolio. Also, I am using the dividend income for living expenses. (Note that I can buy stocks in this account which are traded on any exchange in the world except the US.) Accordingly, my criteria are: - Stable, profitable, blue chip, wide moat, low beta companies, that you can hold forever and sleep easy. - Dividend payers, preferably with a yield over 4%. I own Nestle, Novartis, Roche, Shell, TotalEnergies, Sanofi, Novo Nordisk, ING, UBS, Rio Tinto, Vodafone, and Equinor. I still have some cash to deploy, though I’m in no hurry to do so. I can add to what I own, or add a new position. Please feel free to share your foreign divvy-paying stock ideas here. Two international stocks We own are Unilever (UL) and Diego (DEO). Both pay solid dividends and are relatively recession resistant. I would consider Unilever at around $43 or less, DEO at $165 or less. Win
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Post by chang on Dec 9, 2022 15:06:00 GMT
Diageo (DGE.L) yield 1.99% per Yahoo Finance. Unilever (ULVR.L) 3.58% does beat Nestle’s (NESN.SW) 2.51%. I made an exception for Nestle because it’s such a stable, monster of a company, and inflation-proof (I hope).
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Post by fritzo489 on Dec 9, 2022 16:24:17 GMT
chang , Are you looking at single stocks only, no mutual funds ?
I reread & see you only want single stocks, forget my Question.
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Post by chang on Jan 27, 2023 20:30:50 GMT
liftlock uncleharley richardsok I wonder if you guys have any view on BHP. I need to put cash to work in my foreign account. I own RIO and plan to hold (forever). I can add … or diversify with BHP. BHP has higher P/E but also higher profit margin and ROE. Both are paying a handsome dividend well above historical averages. TIA.
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Post by uncleharley on Jan 27, 2023 20:44:56 GMT
liftlock uncleharley richardsok I wonder if you guys have any view on BHP. I need to put cash to work in my foreign account. I own RIO and plan to hold (forever). I can add … or diversify with BHP. BHP has higher P/E but also higher profit margin and ROE. Both are paying a handsome dividend well above historical averages. TIA. I have owned BHP in the past, but do not own it now. If memory serves me correctly they made a move into oil production about 5 yrs or so ago. That did not work out very well for the shorter term, but might be working out for them now. Mining should do well in a growing economy which is what we are moving into.
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Post by richardsok on Jan 27, 2023 22:30:21 GMT
liftlock uncleharley richardsok I wonder if you guys have any view on BHP. I need to put cash to work in my foreign account. I own RIO and plan to hold (forever). I can add … or diversify with BHP. BHP has higher P/E but also higher profit margin and ROE. Both are paying a handsome dividend well above historical averages. TIA. I have owned BHP in the past, but do not own it now. If memory serves me correctly they made a move into oil production about 5 yrs or so ago. That did not work out very well for the shorter term, but might be working out for them now. Mining should do well in a growing economy which is what we are moving into. BHP TipRanks score very strong 9/10 Yield 9%. Semi-annual xd due March 1 EPS 8.00 Div 6.50, but has varied in the past Technicals very strong but approaching long term resistance levels Inside ownership 5.4% (very large) Operating margin: enormous 52% Merrill Lynch upgraded to BUY Nov '22 My take: good for long term income. Future gains will depend on strength of China recovery and new demands for copper. Wish we had spotted this one a couple of months ago. Barring some big unanticipated geo-political event, I can't see much downside here. I would play it by buying a block Monday and add another on XD. Note: two big yielders out of Brazil (PBR & LND) took BIG hits today. Something must be up, but I don't know what. PBRpA has a yield in 2gd2Btru land must be VERY dangerous. Am personally looking at SBLK and NFE for yield.
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Post by yogibearbull on Jan 28, 2023 13:46:01 GMT
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Post by liftlock on Jan 30, 2023 5:49:22 GMT
liftlock uncleharley richardsok I wonder if you guys have any view on BHP. I need to put cash to work in my foreign account. I own RIO and plan to hold (forever). I can add … or diversify with BHP. BHP has higher P/E but also higher profit margin and ROE. Both are paying a handsome dividend well above historical averages. TIA. BHP and RIO both have very strong overall factor ranking scores at Validea.com. 98 / 99 out of 100, with excellent scores for quality, relative strength, and fundamental momentum. RIO has better valuation scores at 87 versus 67 for BHP. BHP has been outperforming and it looks like it might be approaching long term resistance. A breakthrough of resistance would appear to be quite bullish. One potential negative regarding BHP for US investors is taxation. Dividends are unlikely to be qualified and tax withholding on dividends in ANZ is 30%. Another high dividend payer you may want to consider is VALE which has an overall rank of 97, with score of 91 for valuation. Tax withholding in Brazil is 0%. PBR has sold off since the fall elections in Brazil. It's year over year stock price is flat after paying out an annual dividend that exceeded 60% of it's market price. PBR looks like it may be breaking out and forming a bullish cup and handle pattern after having forming a double bottom. An investor on the Fidelity forum who lives in Brazil sold his shares in PBA after the elections. Quality score for PBR is 61 versus scores of over 90 for the other 3 stocks. PBR has an overall scores of 86 with a 99 for valuation. PBR trades at 1.4x cash flow. VALE trades at 3.6x cash flow. RIO trades at 5.5x cash flow. BHP trades at 6.2X cash flow. I own RIO, VALE, and PBR in my IRA's. I'm thinking of adding to the lower price preferred shares of PBR/A. I would buy some BHP if it weren't for the 30% withholding tax.
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Post by chang on Jan 30, 2023 11:20:46 GMT
Interestingly, Fidelity gives BHP the better valuation score (79) over RIO (69). They also score (“Analysis & Sentiment” tab):
Quality ……………….… BHP 92 … RIO 96 Growth stability …… BHP 93 … RIO 15 Financial Health …… BHP 79 … RIO 50
So BHP seems to have a slight edge, although these ratings change all the time.
However, Fidelity also assigns Equity Summary Scores (based on independent analyst recommendations):
RIO Equity Summary Score: Bullish (8.3) BHP Equity Summary Score: Neutral (3.7)
Can you clarify the ANZ taxation issue? I would actually buy BHP.L on the LSE (as I have done RIO.L).
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Post by anitya on Jan 30, 2023 22:02:47 GMT
richardsok, Just trying to learn the craft. If you do not mind, could you please share your reasoning for buying BHP today? Seems like it already had a good China opening bounce and currently at the resistance level of a multi-year chart. I like the dividend but is that enough for a trade or for an entry of a long term hold? A
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Post by richardsok on Jan 30, 2023 23:09:17 GMT
richardsok , Just trying to learn the craft. If you do not mind, could you please share your reasoning for buying BHP today? Seems like it already had a good China opening bounce and currently at the resistance level of a multi-year chart. I like the dividend but is that enough for a trade or for an entry of a long term hold? A Chang mentioned this stock the other day and I looked into it. At my stage in life, I'm think of two rough buckets in my portfolio, TRADING assets for growth (which I hope to work using my technical discipline, which we have discussed before) and HOLDING assets, especially in the IRA for income now and later for my heirs. BHP would fall firmly in the latter portion as it is solidly earning its distributions. I hope to add to today's buy if the price falls by significantly more than the dividend in its XD coming very soon. Thereafter it will join PDO in my "income" bracket. Will only consider selling it if it gains more than 50% above my buy price or other calamity threatens like a possible war with China, as an example. The numbers look very good, below I dupe my recent post to chang ---- BHP TipRanks score very strong 9/10 Yield 9%. Semi-annual xd due March 1 EPS 8.00 Div 6.50, but has varied in the past Technicals very strong but approaching long term resistance levels Inside ownership 5.4% (very large) Operating margin: enormous 52% Merrill Lynch upgraded to BUY Nov '22 My take: good for long term income. Future gains will depend on strength of China recovery and new demands for copper. Wish we had spotted this one a couple of months ago. Barring some big unanticipated geo-political event, I can't see much downside here. I would play it by buying a block Monday and add another on XD. Note: two big yielders out of Brazil (PBR & LND) took BIG hits today. Something must be up, but I don't know what. PBRpA has a yield in 2gd2Btru land must be VERY dangerous. Am personally looking at SBLK and NFE for yield.
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Post by Chahta on Jan 30, 2023 23:19:24 GMT
I admire you stock pickers. But for me VEU+SCHY covers all I dare to own World ex-US. Let the pros pick them.
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Post by liftlock on Jan 31, 2023 6:13:28 GMT
Interestingly, Fidelity gives BHP the better valuation score (79) over RIO (69). They also score (“Analysis & Sentiment” tab): Quality ……………….… BHP 92 … RIO 96 Growth stability …… BHP 93 … RIO 15 Financial Health …… BHP 79 … RIO 50 So BHP seems to have a slight edge, although these ratings change all the time. However, Fidelity also assigns Equity Summary Scores (based on independent analyst recommendations): RIO Equity Summary Score: Bullish (8.3) BHP Equity Summary Score: Neutral (3.7) Can you clarify the ANZ taxation issue? I would actually buy BHP.L on the LSE (as I have done RIO.L). I checked the relative quintile ranking scores on AAII's A+ Investors service for BHP and RIO. RIO gets straight A scores for Growth, Momentum, Quality and Value. BHP gets A scores for Growth, Momentum and Quality, with a B score for Value. Neither stock has grades for analyst earnings revisions. Perhaps both stocks are followed by very few analysts. I have not studied how US Investors would be taxed for BHP dividend income. However, foreign dividends are normally taxed as ordinary income and are not usually taxed at favorable "qualified" rates. BHP appears to be domiciled in Australia which imposes a 30% withholding tax on dividends. Tax withholding is not recoverable on shares held in a IRA. A US taxpayer can claim a credit on their tax return for foreign tax withholding paid on shares held in taxable accounts. Attached is the chart showing the 30% withholding rate for Australia / New Zealand (ANZ). International Tax Withholding Rates by Coun....pdf (95.15 KB)
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Post by anitya on Jan 31, 2023 7:55:47 GMT
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Post by chang on Jan 31, 2023 10:13:37 GMT
I checked the relative quintile ranking scores on AAII's A+ Investors service for BHP and RIO. RIO gets straight A scores for Growth, Momentum, Quality and Value. BHP gets A scores for Growth, Momentum and Quality, with a B score for Value. Neither stock has grades for analyst earnings revisions. Perhaps both stocks are followed by very few analysts. I think both companies are actually heavily covered. Fido provides 11 and 12 analyst reports for RIO and BHP, respectively: digital.fidelity.com/prgw/digital/research/quote/dashboard/ratings-sentiment?symbol=RIOdigital.fidelity.com/prgw/digital/research/quote/dashboard/ratings-sentiment?symbol=BHP(You need to be logged into Fido to view these pages.) For example, for RIO the analyst reports are: ISS-EVA Buy Ford Equity Research Neutral Zacks Investment Research, Inc Neutral Argus Research A6/Quantitative Buy Argus Analyst Buy Bernstein Neutral CSFB Outperform Citigroup Investment Research Neutral Jefferies Buy Morgan Stanley Neutral UBS Sell I/B/E/S Estimates from Refinitiv No Opinion
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Post by marquay on Jan 31, 2023 15:51:13 GMT
Chahta, Do you invest your VEU+SCHY in taxable or non taxable(IRA) account? Thanks
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Post by belchingthealphabet on Feb 1, 2023 10:49:38 GMT
I had been following Swiss company, ABB. But after hearing it was involved in a THIRD bribery case, i let go of that idea. But for the record, here you go: ABB: Rated HOLD at Stock Rover. www.stockrover.com/research/insight/analysts/quotes/ABBBarchart rates it a 100% BUY. But I think, given the way they use the data, it might be too late to buy, already. RSI is up at 71. So it's overheated, indeed. Here's a look at the technicals, at the Chartmill website: www.chartmill.com/stock/quote/ABB/technical-analysisThe div. = 2.51% and for what it's worth, Morningstar pegs fair value at $37.00. At the moment, shares cost $34.40. Tipranks gives it 8 out of 10, an outperform rating. www.tipranks.com/stocks/abb/stock-analysis"ABB is a global supplier of electrical equipment and automation products. Founded in the late 19th century, the company was created out of the merger of two old industrial companies: ASEA and BBC. The company is the number-one or number-two supplier in all of its core markets and the number-two robotic arm supplier globally. In automation, it offers a full suite of products for discrete and process automation (continuous processes like chemical production) as well as industrial robotics."
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Post by chang on Feb 1, 2023 13:29:39 GMT
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Post by Chahta on Feb 1, 2023 13:40:29 GMT
Chahta, Do you invest your VEU+SCHY in taxable or non taxable(IRA) account? Thanks They're in my TIRA. My taxable account only has muni bonds, MM and a managed growth equity fund that produces no income, only CGs.
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Post by Chahta on Feb 1, 2023 13:43:35 GMT
The buying opportunity last year.
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Post by johnsmith on Feb 1, 2023 14:52:05 GMT
Every corporation bribes. in the US it is political contributions, jobs after a political career, jobs for kids, donations to endowments etc.
It also includes stuffed brown envelopes.
People are the same everywhere, above applies to all other countries too.
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Post by richardsok on Feb 1, 2023 14:59:32 GMT
Yahoo's symbol doesn't work for either Schwab or Merrill L. So, no opinion -- but I do see a 32PE, a volatile chart, and almost a 5% yield. Odd, I think. Probably above my paygrade to express an opinion, even if I could find a data panel. Good luck with it. Let me throw one back at you: MHGVYI'm holding SDIV for yield. FWIW.
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Post by chang on Feb 1, 2023 15:28:36 GMT
Yahoo's symbol doesn't work for either Schwab or Merrill L. So, no opinion -- but I do see a 32PE, a volatile chart, and almost a 5% yield. Odd, I think. Probably above my paygrade to express an opinion, even if I could find a data panel. Good luck with it. Sorry richardsok , the US ADR is ZURVY.
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Post by Chahta on Feb 1, 2023 16:00:13 GMT
richardsok, how the heck does SDIV do that? M* does not show leverage.
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Post by richardsok on Feb 1, 2023 18:11:09 GMT
richardsok , how the heck does SDIV do that? M* does not show leverage. Not a clue, cha-cha.
But check the 3-mo or 6-mo charts with moving averages or P-SAR overlaid. This is just the kind of deep volatility fund I discussed in my book. I'm holding it for its currently bullish technicals and any ex-divs I cross are gravy. In my particular case it's a little problematic working my method in the IRA b/c my Merrill L broker frets I trade too much. So most of my trades are in my taxable accounts.
My theory (and apologies for my repetition) Sooner or later a bear market is in all our futures. When it comes, people holding low-volatility positions set up with technical alerts have a good likelihood of exiting to cash before severe damage is done. If I own a menagerie of tortoises and you a herd of jack rabbits, which of us will be in a better position when the fence burns down?
More theory: since I don't know what will occur in the future, I only have to keep a sharp eye on what is happening NOW. The beauty of deep- volatility is that when such a fund changes its direction, it tends to REMAIN in that new trajectory.... not always, of course, but frequently enough to be successful.
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Post by anitya on Feb 1, 2023 19:58:28 GMT
richardsok, MHGVY is interesting. If you had a chance to unearth, could you please share why the stock price collapsed in mid 2022? Thanks chang, Insurance is a good business and one really has to work hard to screw up (AIG and CDSs?). Your choice looks good.
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Post by liftlock on Feb 2, 2023 4:29:03 GMT
Yahoo's symbol doesn't work for either Schwab or Merrill L. So, no opinion -- but I do see a 32PE, a volatile chart, and almost a 5% yield. Odd, I think. Probably above my paygrade to express an opinion, even if I could find a data panel. Good luck with it. Sorry richardsok , the US ADR is ZURVY. ZURVY scores 83 out of 100 on Validea.com. Dividend Yield is listed at 8.76%. Trading at 11.7x cash flow. Scores for Value = 74, Quality = 62, Momentum = 87. TRV has a better overall scores at 99 out of 100. TRV dividend yield is only 1.95% but trades at 10.5x cash flow.
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Post by liftlock on Feb 2, 2023 5:24:02 GMT
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Post by richardsok on Feb 2, 2023 13:47:08 GMT
ZURVY scores 83 out of 100 on Validea.com. Dividend Yield is listed at 8.76%. Trading at 11.7x cash flow. Scores for Value = 74, Quality = 62, Momentum = 87. TRV has a better overall scores at 99 out of 100. TRV dividend yield is only 1.95% but trades at 10.5x cash flow. Not that much on it out of my corner. TipRanks 7. Merrill L: Neutral. EPS 3.53 My tech signals: neutral News: Facing $250mln Forex Headwind into 4Q
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