We’re making some moves in the Dividend Growth Newsletter portfolio today.
By Brian Nelson, CFA
We decided to remove Boeing (BA) and Procter & Gamble (PG) from the Dividend Growth Newsletter portfolio recently. You can view the Dividend Growth Newsletter notification log here. We still like both companies a lot. Boeing has a fantastic position and an inherently hedged business portfolio, while Procter & Gamble still retains some of the best consumer brands, even after a rather aggressive brand simplification process. However, Boeing has run too far too fast, and we can’t rule out P&G turning into another General Electric (GE) given its decision, too, to shrink its brand exposure.
We’re replacing those two stalwarts with two key players off the bench. We’ve long been fans of Digital Realty Trust (DLR) and Oracle (ORCL), and we’re finally giving these two dividend growth ideas the nod. Remember, you can access all of our information on these companies on their respective landing pages, from our estimate of their intrinsic value, our calculation of their Dividend Cushion ratios, and what we think of their business models. We’re setting Oracle in the 2.5%-4% weighting bands and Digital Realty Trust in the 4%-5.5% weighting bands, replacing the weightings for Boeing and Procter & Gamble, respectively.
If you haven’t checked out our quarterly Dividend100, it is an awesome publication to sort through dividend ideas in just one pdf. The second-quarter 2018 edition can be downloaded here (pdf). Make sure that you are on the financial adviser level membership plan to keep receiving this publication. Learn more here. You could be paying as much as $400-$600 a year just to hold an index fund ETF on a $100,000 account. That’s about what it costs for the financial adviser level membership plan for a full year, and we’re actually doing research!
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Brian Nelson does not own shares in any of the securities mentioned above. Some of the companies written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.