Time for a Stock Check
I am having a break with tradition tonight because normally I would do loads of Charts and stuff on a Sunday Night but for various reasons I am running tight on time but also I wanted to update the ‘Weekly Performance’ bit on my Homepage (my plan is to finish this on Monday Night) and I thought it would be useful both for myself and for Readers to go through the Stocks in my Trading ISA and extol my current thinking on each one of them. I am not going to cover the ones in my Income Portfolio because I think they are mostly getting a mention in the Final Parts of my Income Portfolio Blog Series anyway (the last of which should go out later this week).
On top of that, last Week with Thanksgiving and all that was pretty dull with low Trading Volumes etc. so I’m not sure we could learn much from the Charts anyway. At a very high level, Markets just seem to be continually buoyant even if my Portfolio doesn’t want to follow their lead !!
So let’s crack on with the Stocks…….
Example Stocks for use in an Income Portfolio
I have been thinking about how to lay out this Blog for a while and now I am actually making a start on it I am not totally sure I am going about it in the best way, but I will crack on and see how it plays out. I realise it is going to be a Blog that Readers are particularly interested in so I will try and do it in a logical and clear way.
The ScreenShot below is taken from the extremely flexible ShareScope software I subscribe to and it you look at the Column on the Far Left (oh no, Jezza Corbyn !!) it gives a list of the FTSE350 Sectors and my plan (unless it changes as I go through) is to go through each of these Sectors with regards to their suitability for an Income Portfolio and perhaps to name some Stocks which are of particular interest within the appropriate Sectors. Judging by the scale of the task ahead I expect to be splitting this task over 2 Final Blogs for the Income Portfolio Series (hopefully the Crowning Glory and not a dismal Damp Squid of an ending….too much Blue Planet 2?)
I am starting on this one well early today because I want to watch that Guy Martin making a WW1 Tank and driving it to France thing on Channel 4 tonight - and it’s a 2-hour epic so my hope is that I can get the bulk of this Blog bashed out well before then (it is around 4.30pm now so I should have loads of time) and I can come back to it after Guy for a proof-read and upload to the Website - be nice if my plans don’t get stuck in the Mud of the Somme……
STOP PRESS - I watched the Guy programme and it was very good - well worth digging out the 4OD thing or whatever it is to watch online.
Real soggy week for me last week - my Portfolio overall was down 1.6% although I don’t recall any particular culprits (there were a few Ex-Divs which will have exaggerated the falls a bit) but it just has the feel of a Market that lacks direction. ‘Soggy’ is such a great word for such a Market because it really has no oomph either way - it seems to have no great inclination to go higher, but equally it doesn’t seem over keen to Tank - it is just ‘Soggy’. In many ways these kind of Sideways, Grinding Markets are the worst to endure from a psychological viewpoint (and they certainly lack entertainment and/or fun) - at least when a Market properly tanks we know that won’t be forever and it is an opportunity to buy more - and of course when Markets shoot up we are naturally happy anyway.
As always with these Blog Series, I have a rough idea of how they will pan out when I start on the early Blogs but as they develop I get to a point where I decide that it deserves some more Parts - hence you will note this is Part 5 of 7 and the next two will be looking at each of the Sector Classifications and highlighting particular Stocks that might be suitable for an Income Portfolio. This extension of the Series partly comes about from the size of each Part and the logical flow but it is also driven by my desire to ensure that at least 1 Part gets released each Week - I am sure this is what Readers want to see and also I am sure you appreciate that it takes me a while to bash them out.
How to Find Suitable Dividend Stocks
I guess there are several routes to actually finding the Stocks you want to shove in your Income Portfolio but I will just mention 2 basic methods here which are very much how I tend to go about finding them:
Last Week turned out to be a bit of a pain for me - from Monday to Wednesday nothing much seemed to happen and then things tailed off at the end of the Week so my Portfolio took a hit of 1.2% over everything (excluding my Income Portfolio which I rarely look at). This continues my angst at failing to see my Portfolio Breakout of its All Time High which was put in back in May and I feel like much of the Year has achieved very little !!
However, as always we need to stay calm about such situations and focus on the positives and what has really been achieved - even if the Numbers are not reflecting it yet. There was an excellent TED Talk (Rory Sutherland - ’Perspective is everything’) which my mate Tom Tomsky @calvoreon sent me on Twitter which was about Psychological Framing and Perspective - the basic essence being that how we experience things that happen in our Lives etc. and how we let them affect our Emotions/Decisions, is largely down to how we set the context of whatever has happened. I am not explaining this very well, so rather than me jibbering on, check out the Talk yourself here - it is 18 minutes long and actually quite funny:
First off I am having a very good year despite the flat recent Months - this is something that obviously I should celebrate and not get too down about. In addition, I have a nice collection of Stocks and I expect to see nice upside from the majority (or at least decent Dividends) in the Months ahead - and as we will see below, several of my Stocks are in very interesting Technical Situations where they are on the verge of All Time High Breakouts (don’t switch off already, I am going to do a proper explanation of this !!).
This probably isn’t a definitive or particularly detailed list and I’m sure you will find other tasks/actions you need to do to get up and running properly. Many of these will come from reading the Text in my Blog Series and also from your own particular requirements, but these are a rough set of Guidelines to give you some idea of what needs to be done to get going with your Income Portfolio:
1. If you are totally new to this then buy Naked Trader Book - chances are if you have already dabbled in Stocks you will have read Robbie Burn’s excellent book, but if this is entirely new to you, then I recommend you nip over to ‘Wheelie’s Bookshop’ and get a copy. It is pretty cheap really and would definitely be money well spent. Much of it will be more related to Small Stocks and an Approach focused on capturing Capital Gains rather than the Dividend Payments but it is still pretty much the clearest and most simple book on Investing/Trading and it covers a lot of important concepts in far more detail than I can in this Blog Series. There are also a lot of complementary bits like Robbie’s explanation of how he uses the ADVFN News feature to analyse Company Trading Updates etc. There is also quite a bit on the detailed process of how to Buy and Sell a Share and stuff like that.
I AM NOT A FINANICAL ADVISER OR FCA REGISTERED OR WHATEVER - PLEASE SEEK PROFESSIONAL ADVICE WHERE APPROPRIATE AND READ THE DISCLAIMER AT THE TOP OF MY HOMEPAGE.
This can take several forms - a Self-Select ISA, a SIPP (Self Invested Personal Pension) and/or a ‘Normal’ Share Dealing Account (i.e. not a SIPP or an ISA !!). These things all have different features but also a lot of similarities. With a SIPP you are much more ‘locked-in’ and in essence you cannot get your hands on any of the Money you put in or the Dividends/Profits you make on the Account until you Retire (this would probably be 55 as a minimum legally I think but you need to check this as it will be rising in step with the State Retirement Age in future), but you get some nice Tax Benefits like with all Pensions (although you will be Taxed on any Money you take out in the Future to some extent).
On November 5th a Title for my Blog is not too difficult to dream up and Miss Perry has come to my aid as well - and with Stocks shooting upwards like a Rocket it is also appropriate. No doubt there will be some Roman Candles somewhere in the Blog…..
Markets continue with their strength especially in the US and even the FTSE100 is up near its All Time High again - if it can breakout over 7600 then 8000 must be very much in sight perhaps even by Year End.
After a couple of grotty weeks my Portfolio managed a nice gain of 1.4% overall last week and I am just a smidge off the All Time Highs I hit back in May - this inability over the Summer to breakout has been driving me to drink and I really hope it will happen soon - but of course anything can happen.
If you haven’t read Parts 1 and 2 yet, then scroll back down my Blog Page a tiny bit and you should find them very easily.
Features of an ideal Dividend Stock
There are many aspects and features that make a particular Stock suitable for an Income Portfolio - the following spring to mind as things to consider:
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