In today’s article we are going to review some interesting stocks that are worth your consideration when building a medium-term portfolio.
This article will focus on earning a decent return via dividends. But we will also dive into the newest developments and charts…
The SPX reached a new high. But price action quickly made retracement below the important level of 3300.
US Central Bank President (FED) Powell said in front of the congress that the banks will do whatever is needed to sustain the economy, but the concerns about a possible second wave of Covid and consequently a new lockdown increase the uncertainty of the market in general.
Volatility is also increasing due the US Presidential elections in November. Statistically the months before the elections are very volatile.
The Vix is around 30 which indicates that high volatility is on its way.
In the previous article, we show how to protect a stock portfolio or speculate on bear markets with the use of PUT options. The concepts illustrated are still in play with this market.
Let’s see an example for the educational purpose of a medium term stocks portfolio based on dividend returns. In the process of selection for a stock, a good evaluation has to be made on dividend returns.
There are some very interesting stocks that have very good dividends over the year. The selection of course takes into play several considerations and numbers, but a good dividend can boost the return of the stock.
Here is an example of a medium term portfolio:
|PFE – PFIZER||36.25||Pharma||4.19%|
|BAC-BANK of AMERICA||23.94||Finance||3.01%|
|KO- COCA COLA||49.66||Consumer||3.30|
|XOM – EXXON||35.53||Energy||9.79%|
|INTC- INTEL||49.95||Electronic Tech||2.64%|
|TLT- 20 yr Treasury||164.27||Bond||1.62%|
As you can see most of the stocks have a good dividend like AT&T with 7.30% and XOM with 9.79%. Also, they range in different sectors which is important for diversification purposes. And a hedge like TLT 20yr Treasury bond is a good instrument to balance the portfolio.
Thinking about options but not sure yet? There are a couple of ways to move forward before committing to the course or educational signal service. Here is how you can stay in touch:
If you are ready to move forward, then you can choose from:
Marco Doni – ecs.OPTIONS expert and CNBC contributor
The articles are not intended to give any advice on how to invest money, they are just for educational purposes.
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