Before we start with our buy list, first I wanted to share a few thoughts on how it was created. When we built our Dividend Stocks Rock (DSR) portfolios back in 2013, it was a good time to buy most companies in our portfolios. You can see by our strong results that we did a good job picking the right stocks at the right time. On the other hand, the market is up remarkably since 2013 and finding interesting stock isn’t an easy task. Now that the easy money is gone, it doesn’t mean that it’s not the right time to invest. However, it is definitely time to become picky before you make each purchase. This is why I’ve personally handpicked a short list of stocks that I would buy today if I had extra cash in hand.
How the list was built
First, all stocks in each of our portfolios are picked because they share several metrics in common. At DSR, you know we focus on strong companies showing the ability to grow their revenues, earnings and dividend payments all at the same time, preferably for many years to come. We find these companies using our proven 7 Investing Principles.
Now, these principles are the foundation of our investment strategy to select strong companies according to our investing goals. And it doesn’t cover the question of when to trade. When do you chose to buy shares of a stock is a difficult science to master. Since we follow our stocks on a daily basis and review our portfolios monthly, we know which companies show the best short term potential. While we believe all companies in our portfolios deserve their place, some are more attractive than others at certain points in time.
The list has been built choosing stocks with strong fundamentals with an additional edge. I looked to find something more interesting about a single company compared to all the other great picks we own in our portfolio. This is the edge that could boost the stock price to a whole new level over the next two years. It could be several things:
A recent competitive advantage that was developed internally,
An acquisition opening doors to new markets,
Temporarily bad news dragging the stock price into undervalued territory,
New products/markets with huge future potential,Possibility of upcoming acquisitions/mergers,
Favorable environment for the upcoming years,
Incredibly strong business model showing success year after year,
As we review this list regularly, we thought of sharing the results of our analysis on a single page. This is what we call the Rock Solid Ranking.
How to use this list from the Rock Solid Ranking
Then again, at DSR, we don’t make stocks recommendations. I’m not your personal broker and I can’t tell you how to make a trading decision. However, we are sharing this list to share our thoughts with you and how we would manage extra money in our account if we had to purchase shares tomorrow morning.
The list is not built according for a specific portfolio. You could find growth stocks that will be included in a portfolio for an 18 to 36 month strategy to benefit from its short term upside potential. You can also find core (conservative) stocks that are currently undervalued and you will probably hold in your portfolio for the next ten years. It’s just a matter of buying the right stock at the right time.
The list hasn’t been built around a specific sector allocation either. This means you could find 4 stocks from the same sector at one point. If several companies in the same sector are attractive (I’m thinking about the oil industry two months ago for example), I will pick amongst them. My first criterion for a decision to include a stock in this list is to find a company with an edge. It doesn’t mean you should buy all of them if they are coming from the same sector. This would greatly unbalance your portfolio and your overall returns could suffer over the long haul. I will rely on your good judgement to make the right trade for your portfolio, your personal situation.
How the list will be updated
The list will be updated monthly through our DSR membership website. Each company on the list comes with an upside / downside potential and a Buy/Hold/Sell rating. Each month, the newsletter will include the latest news around stocks I’ve picked to be on my buy list. If you have any questions regarding the list, please send me an email at email@example.com
I guess you will understand that this list is available for DSR members only. However, I wanted to give you a quick peek at what the list looks likes in term of data:
The chart above is for example purpose only and is not being updated
Each Stock has a Stock Card for you to Download
Each company we review throughout the year is being documented here with a complete analysis for you to read.
In a condense pdf format, you can review a company going from their business model, dividend perspectives, risk potentials and finish with a fair valuation. In a glimpse of an eye, you can have a clear idea if this company should be in your portfolio.
As a member of DSR, you will have the privilege of requesting additional stock cards for those who haven’t been reviewed by our team yet. This “on demand” service is complementary in your subscription. This tool has been especially designed to optimize your precious time toward decision making.
We Become your Stock Research Assistant
By combining the buy list with the stock cards, you have all the information you need to rapidly take a decision. You will get instant access to our investment thesis, potential risks detailed, dividend growth perspectives along with our valuation. Plus, if you can’t find the company you are looking for; you simply have to ask us to create the report for you! It’s like having your own personal stock research assistant.Google+