Showing posts with label XOM. Show all posts
Showing posts with label XOM. Show all posts

Thursday, March 12, 2020

Shouldn't P/E ratios be really low if this is a buying opportunity for ordinary investors?

  • Stocks were over valued as measured by P/E ratios
  • Markets were heading higher on P/E ratio expansion
  • Looking for low P/E stocks in the Dow 30 reveals eight stocks to consider
  • Dividend Fundamentals remain of utmost importance

If you follow my blog, you know I have been writing about Dividend stock investing since just after I retired as an investment adviser in 2009.    To say I have been through this before more than once is accurate; to suggest I am immune to the pain is wrong.  However, I know that even with my shortened life expectancy, I am 11 years older than I was in 2009, quality stocks will continue to deliver the income I need to live my lifestyle.

FEAR NOT; BE PREPARED

I always advised my clients to have a debt free house to live in as one goal and to have money in stocks and bonds that are highly likely to continue to pay the income needed to support their lifestyle and in stocks that will increase that income over time.

I also advised my clients to have their rainy day fund always in safe, liquid assets even if it is painful to receive virtually no income from that stash.  For clients who have more cash than they need and for clients who expected to receive cash in the form of a bonus, or tax refund, or gift from Uncle Henry, you have to be willing to add stocks in downturn.

WHICH STOCKS?

Today I am looking at the Dow 30 stocks to find something of value.  Here are my criteria:

  • Good balance sheet, I use D/E ratio and interest coverage ratio
  • Dividend yield of more than 3% 
  • Dividend history during previous market disruption in 2009
  • Price correction that mirrors the overall market
  • P/E ratio under 15

Looking at each of these criteria I begin with balance sheet.  Companies have been adding debt because debt is cheap.  The old saying goes that you should borrow when you can not when you need to.   What are they doing with added debt.  Apple for example has a ton of cash around so they borrowed at cheap rates and used that additional liquidity to pay investors dividends.    Home Depot borrowed the money to buy back stock and increase the value of the shares held by investors.

Debt matters if the company cannot pay the interest on the loan and cannot pay out our precious dividends.  Therefore, looking at a combination of D/E ratio and interest coverage is a good guide for the ordinary investor.

It used to be that dividend yield needed to beat the 10 year U.S. Treasury but in today's world those metrics are unreliable as Treasury yields are so low, no one can live on them.  A more reliable yield for me is 3%.  If I get 3% on my portfolio, I will not suffer but I also will not be accumulating cash from the difference between my income and my expenses.  Yield is very personal and each investor needs to do their own math to determine the minimum yield they need.

Dividend growth is more significant for the long term investor who does not work for a living.  In 20 years everything will cost about double what it does now.  If you don't believe me, go back twenty years and look at the cost of ground beef, or your car insurance or your home owner's fees.  Even if a stock did not increase the dividend during the 2007-2009 debacle but resumed dividend increases after the crises abated, you are probably okay with that investment

Why buy a stock that has not corrected as much as the market?  Hard to find one of these but I do have an example.   This is a two handed assumption.  On the one hand, if you are buying during a market crisis, you certainly want a bargain.   On the other hand, if you find a stock that has held up well, maybe you have a winner that can weather any storm.  Again, investing is an individual process and only you can decide if a stock meets your personal criteria.

That lead's us to P/E ratio which the ratio of the price of a stock divided by the earnings.  Zacks reports the average long term P/E ratio of the Dow Industrials is about 16.  Ycharts shows a P/E of 22.29 on 12/27/2019.   Other sources show a range of as low as 7 and as high as 30.  In 2009 the Dow's P/E was about 15.  Hence, I picked 15 as a cut off.  

Note that while the DJI (Dow Industrial Average) is just that, you can find average P/E's for each stock you are considering.

I was quite surprised to find stocks that I have liked in the past but found to too expensive to buy or to hold to still have higher P/E's than I like and some with dividend yields below the 3% goal.  Johnson and Johnson carries a P/E/ of 24.23 and a yield of only 2.88%.  Apple carries a P/E of 21.13 and a yield of 1.21%.   Great businesses but I have to stick with my disciplined approach.

Here are the stocks  in the Dow industrial average that today meet the P/E criteria and the dividend yield criteria.  Some have higher D/E ratios than I like but all have positive interest coverage ratios.  Anything interest coverage ratio that is under 1 is too risky.  

Symbol Price P/E D/E Int.Cov. Yld Other Factors
JPM $88.92 8.72 1.42 2.7    3.00%       Neg Int Rates
CAT $90.97 9.69 2.58 19.63.23%     World Recession
IBM $104.48 11.15 3.27 8.6 4.83%      No Rev Growth       but new CEO
TRV $106.33 11.71 0.25 10.12.62%    Less than Dow        correction
PFE $30.78 11.78 0.83 12.2 4.18%     No Rev Growth
VZ $51.93 12.01 2.17 5.8 4.23%     Leader in 5G
XOM $38.74 12.46 0.24 25.2 6.78%      Oil Glut
CSCO $34.31 14.81 0.45 20.4 3.60%
*Price, Int.Cov. Yld from Market XLS P/E from Schwab 

Note the one stock that has not corrected as much as the market is TRV.

You should always look for more data on the stocks you are considering.  I noted in the table above some of the externalities that might color my decision to buy.

BE BRAVE, BE DISCIPLINED

M* MoneyMadam
Disclosure:  Long JPM, IBM, CAT, VZ, XOM, CSCO.   I have covered calls working on a portion of my holdings in each name.









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Thursday, December 5, 2019

XOM call activity today

Exxon Mobil

Bought this unloved energy stock and sold calls against it. Love the dividend: yield 5.08%, as I am an income investor, but don't love the price action.

Today's strategy will deliver additional income from the call premium.  If XOM is called away, I also will realize a capital gain.  If XOM is not called away, I will keep this lot in my portfolio provided the dividend is safe.  If the price action improves, I may be able to sell more calls for more income.



M* MoneyMadam
http://www.themoneymadam.com/
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Monday, November 4, 2019

Maximize yield with capital gain potential MPC CVX or XOM

The goal of every income investor is income followed closely by capital preservation.  Next on our list of goals is to maximize income and retain the opportunity for capital gains.

  • The goal of the trades discussed in this post are to achieve 8% annualized cash flow from a combination of dividends and covered call premiums and to keep an opportunity for capital gains.
  • My analysis illustrates how to determine how much premium from a covered call you need to meet your goal.
  • In this article I present three stocks to consider with only one of these stocks that meets my 8% hurdle. 
In reality this is just a math exercise.  You start with either your basis on a stock or the target price at which you want to buy a stock.  For me I want 8% annual income yield on these stocks.  I will discuss why I set 8% for these stocks later in the post.   Once you have that number in hand, subtract the annual dividend.   After subtracting the dividend from the desired total income, you can determine how much you want in call premiums.

Since you want to capture the dividend with each call expiration date, you can expect to sell no more than 3 calls per year.    Assuming you actually can sell three calls per year, you simply divide the total income you want from the call premiums by three and that determines the premium you need per call to meet your goal.  Let's look at an example then we can apply this theory to real trades.

EXAMPLE XYZ STOCK











For XYZ stock we need $2.50 of additional income from premiums on covered calls.  If we get lucky you might get the whole $2.50 on the first call.  However, it is more highly likely that you will end up selling, also known as writing, calls three times during a year at an average of $.83 per contract.  One contract is 100 shares.

SCREEN BY PREMIUM FIRST

In this situation, once I target a stock, I start by looking for premiums rather than strike price.  In most of my covered call trades, I look for a strike price no less than 8% above my basis and usually, I like 10% or more.  I want a strike price high enough that it is not likely to be called away.

On a potful of stocks, however, I will start by looking for a premium and then determine which expiration date is after the next ex-dividend date.  In other words you do not want to sell a call with an expiration date before an upcoming ex-dividend date.  The last value I look at is strike price.

These are good stocks and I know I risk losing my shares if the strike price is too low.  If the best premium comes from an expiration date in fewer than 30 days, I am more willing to risk losing the shares to the call buyer but never, ever at below my basis.   I always want a capital gain if the shares are assigned to the call buyer.

How much capital gain I want is different with each and every stock.  Stocks like Broadcom, symbol AVGO, are very volatile.  Tweet, tariff and headline news can hammer these stocks providing an entry point and these same factors can send it soaring which makes the calls create more income for us.  Picking a high strike price is appropriate.  If you get hit, you'll likely have another chance to get in.

Other stocks are not so volatile and you are at less risk of losing your shares even when you pick a strike price only 5% or so above your basis. Let's get to specifics.

CVX (Chevron), MPC (Marathon Petroleum) and XOM (Exxon Mobil)

Below are tables of the calls available when I did my search today. November 4, 2019.

Remember, I want to add one or more of these stocks and am looking for an annual combined (dividend plus call premium) yield of 8%.

The eight percent comes from the idea that this group of stocks needs to create enough income to fund a specific project.  For me it is an annual charitable contribution but you might think of the idea when you are trying to create the income you need for your required minimal distribution from an IRA.    You don't have to use 8%.  If your hurdle is 5% simply change the parameters in the calculation.

Chevron CVX


All three stocks have good balance sheets.  Chevron carries a D/E (debt to equity ratio of only .20.)    They all have good dividend yields, Chevron's is over 4%.  And they all have revenue growth.  They earn more than they pay out in dividends as measured by EPS and free cash flow.









You can see from the table above, the concept that I can get 8% annual return on this stock by using dividends and calls is not encouraging.  I will pass on the single call available with the premium I
need.

Marathon Petroleum MPC


MPC has the highest D/E ratio at .91 and that it is still acceptable.  It has the lowest dividend yield of 3.19% but that too is acceptable because MPC has the most robust revenue growth.  Revenue growth stimulates the juices of the call buyers.  Moreover, there has been speculation that MPC may split up to provide more shareholder value.















You can see from the table above, we have more than one option to consider.  Note the first call after the ex dividend date is November 22, 2019.    You cannot go out too long on the expiration date or you will not be able to sell three calls in a year.   Within 90 days, MPC provides two calls worth consideration.

December 20, 2019 $72.50 call for a premium of $1.18 and the January 17, 2020 calls for a premium of $1.32.

Exxon Mobil XOM


XOM pays the best dividend of the group with a yield of 5%.  XOM also has a good balance sheet with a D/E ratio of .24.  Revenue growth is the slowest of the group.  XOM calls are interesting.












Notice the only call for me that has interest is the January 17, 2020.  You could sell this call and receive two of the three call premiums you need to receive an 8% combined income yield.  However, the capital gain opportunity is weak at only 1.16%.    You could very easily lose your shares to the call buyer.

END RESULT

Today I added MPC and sold two calls.  I sold the December 20, 2019 $72.50 call and the January 17, 2020 $75.00 call.

We will just have to see what happens.  This is an exercise in working calls in a market with an upside bias.  It is a conservative approach because in the end if the market tanks 'ala 2009, we will still have a stock with steady income and a solid balance sheet.

Good income investing.

M* MoneyMadam
Disclosure:  Long CVX, MPC, XOM with calls on MPC











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Thursday, May 17, 2018

Update to 2018 Income Portfolio

Updated 2018 Portfolio

Some don't add to losers but I do when the fundamentals are still good.  Remember this blog concentrates on income and income that grows.  





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Wednesday, May 2, 2018

Starter Portfolio of 5 percenters

I write for the individual, ordinary investor who wants to manage or monitor their own income stocks.  In this post I am looking at stocks that I call my "5 percenters."   These stocks are intended for retirement accounts.  Therefore, the universe of stocks does not include master limited partnerships due to their complicated tax implications.

  • Three percent is not enough
  • A pristine balance sheet is critical
  • Value is important
  • Dividend increases are desirable

Three Percent is not enough


When you can buy a totally safe instrument such as U.S. Treasury bonds that pay you 3%, why would you risk exposure to a stock?   Reasons are: (1) you either don't really need more than 3 % to live or (2) you think there is stock appreciation potential which you will tap for income by selling some shares. 

I have never been comfortable with the idea that I have to sell some shares to meet my income needs. Perhaps I have been in this business too long and know what can happen to stock prices in what seems like an instant.   1987, 1992, 1994, 2001 and of course the 2007 - 2009 debacle are fresh in my mind.

Another reason is my very low risk tolerance, especially in retirement account investments.   Once you retire, you cannot re-fill the coffers should you suffer a loss.  Moreover, so many people end up selling during a rout instead of waiting it out.   

You can wait it out better if you know your income will continue during times of turmoil.  If you don't look at the stock prices and only look at deposits from dividends and interest, you can make it through these difficult times.

I am not suggesting the stocks in my "5 percenters" portfolio will not suffer price declines.  I am suggesting, they will pay you an average of five percent and may even increase your income over time.

Selection criteria


I found five stocks that would make a good starter portfolio for retirees like me who need five percent.  I did not include any MLP's (master limited partnerships) that can deliver really high yields but also have complicated tax implications.

The average yield of these five stocks is 5.22%.  The range is 4.26% - 6.1%.  

Several stocks did not make the cut due to balance sheet issues.  I want a really solid balance sheet as measured by D/E ratio (debt to equity.)   General guidelines suggest a D/E of one or less or within industry standard is a desirable hurdle.  

The average D/E ratio of these five stocks is .59.  The range is .11 - .89.  All are within industry standard.

Earnings always have to exceed dividend paid out and some dividend growth is desirable.  

Value


Let's assume, the investor reading this post has just received their corporate retirement payment.  Now they have to invest it.  You don't want to start by buying high.  Nothing can make a new retiree more uncomfortable than seeing the value of their holdings go down and that can happen in the best managed portfolios.

I am using P/E ratio (price earnings ratio) to measure value.   Current common wisdom suggests many good stocks are over valued.   Stocks are considered cheap when their P/E ratio is under 15 and expensive when their P/E ratio is over 20.   

Growth stocks almost always carry a high P/E ratio.  If you are going to live a full and long retirement, you will need some growth but this post highlights five stocks to consider not for growth but for five percent income.  

The average P/E ratio of these five stocks is 12.20.  The range is 6.61 - 17.64.

My Five 5 Percenters


Years ago when I would advise a client on a starter portfolio it almost always included names like Johnson and Johnson (JNJ).   Today stocks like JNJ pay too small a dividend.  JNJ's yield is not even 3%.   And, JNJ has had some earnings issues making their current P/E quite high although, JNJ will improve that metric in 2018.  

The five stocks I have selected are quite diversified and I am pleased to see that result.  I did not go into this study trying to find diversification, but I did hope to end up with a diversified portfolio.

All data is on the five percenters is presented below.

DIVIDENDS


In the table below, I bought $40,000 worth of each of the five stocks.  You can see the dividend income and yield.




Investors who want to live off of their dividends and interest payments, need to look carefully at this chart.  This chart presents very realistic expectations of income from dividend stocks.

BALANCE SHEET, DIVIDEND INCREASES & VALUE


In the table below, you can see the EPS (earnings per share) as compared with dividends paid out.  Also note  D/E ratios of these five stocks.  Finally P/E ratios are displayed.  P/E ratios are based on previous earnings rather than future earnings.  However, when I look at projected earnings the P/E ratios change only a bit.  T's P/E is projected to increase from 6.61 to 9.60 and NHI's P/E is projected to decrease from 17.64 to 12.41. 

Also presented are the dividend increases over the past four quarters.  To calculate dividend increase %, I summed the most recent four quarter dividends, and compared them with the prior four quarters to create the dividend increase %.



Everyone of these stocks has some trouble.  That is why they are considered cheap.  Yet I believe their fundamentals are strong enough that I am using them in my personal portfolio to create 5% income.




M* MoneyMadam
Disclosure:  Long all stocks discussed




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Monday, February 5, 2018

XOM I will add on weakness

Exxon Mobil has gotten slammed on every level.  I added XOM to the 2018 portfolio (see table below) at $86.78.   Today XOM is trading in the $82 range.   A 10% correction would mean a stock price of $78.10.    If XOM does trade down that low, I will most likely add.


To some, it may seem I am trying to catch a falling knife.  Yet, I still believe XOM has the ability to their business around and just have not had quite enough time to see it on the bottom line.   I like the yield and I am one very patient investor.   This is not the first stock I bought that sunk after I got in only to rebound significantly.

On the other hand, I also have picked some real stinkers and XOM could be one of the those.  I will give it a few years, yes a few years to get improve.  If after that it is still dead money, I will re - evaluate for my own portfolio.  However, in my published portfolios, I am long only.






M* MoneyMadam
Disclosure:  Long XOM and T
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Thursday, January 11, 2018

First Dividend Stock for 2018 XOM

Good New Year everyone.  I can report to you that I bought my first Dividend Stock for 2018 and it is Exxon, symbol XOM.








  • Low Debt to Equity Ratio (D/E) of a dividend stock is downside risk protection for the income investor 
  • Emerging from EPS weakness when dividends were maintained or even increased is another measure of strength
  • Long term dividend growth is important in a mature stock 
  • Adjusting your strategy to the new normal can help participate in gains but good fundamentals limit risk


I am changing my approach a bit this year.  I built seven pretty successful portfolios using my Dividend Machine Criteria; my 2011 portfolio is up over 130% or 18% per year.   I still want to make sure I am buying solid stocks but I am not going to restrict my buys quite as much.  I am going to deviate from my strategy to adapt to the new normal.

We need to pick stocks for income but limit our risk by using solid fundamental analysis yet this year I want to look at participating in gains by adding to those stocks I trust to deliver income when the new normal breaks down and becomes the same old boom and bust cycle of stocks.

I think we need to be very facile in our investing for 2018.  Our job as income investors is much easier than the investor who needs to create the wealth off of which they live.  We just need to invest our savings in instruments that deliver income and make sure those investments are safe.

The value of these income investments can vary but as long as they continue to deliver income when times are not so good and increase our income when times are good, we can stick with these stocks.

When I look at a stocks, I  must have income in the form of dividends and I really like covered calls where possible.

RISK CONTROL WITH D/E RATIO AND EPS


Debt to equity ratio (D/E) ratio is one of the most available and easiest measures of a company's fundamentals. I will not compromise on this metric.

Readers know I used earnings per share being great than dividend pay out as another measure of safety.  This year I am not going to be so severe a critic of EPS.  If the earnings per share of a stock only barely cover the dividend I won't immediately eliminate it.

For instance in the case of XOM, my first Dividend stock of 2018, this stock continued to pay dividends during some difficult times.   When oil prices collapsed, earnings were not covering the dividend.  Because of the strength of the balance sheet, XOM was able to continue to pay us dividends.  Now earnings are turning around and are equal to dividends paid out.

We cannot be sure that oil prices will stay strong.  However, I am hoping that during the bad times, Exxon used it talent to develop technologies that will improve performance.  They have diversified to include multiple energy sources.  I believe they are a solid company and will maintain and improve the ratio of dividends paid/earnings.

Exxon XOM DIVIDEND FUNDAMENTALS


I have summarized the fundamentals I track on my dividend stocks.  I bought XOM on January 3 at $86.78 right about where it is today (1/10/2018.)  The table below summarizes the metrics I track on my dividend stocks and provides the detail for XOM.

         
  Exxon Mobil Corporation   
  XOM 1/3/2018 $86.78  
         
  D/E Ratio 0.14    
  E.P.S   $3.07  
  Dividend   $0.31  
         
  Dividend 3yr Growth 3.86%  
         


XOM would not have been in my previous portfolios because their revenue growth is negative.  This is mostly due to the price of oil.  However, times have changed and XOM has a better diversified revenue base and oil prices have improved.  In fact in their most recent quarter (9/30/2017) revenue grew by 5.9%.

UPSIDE POTENTIAL IS DIVIDEND GROWTH and STOCK PRICE


Based on XOM's current dividend stock fundaments, I think the dividend will be safe when the next bust cycle confronts us.  Stock price may go down if markets suffer a major disruption but XOM will stay in business and it is highly likely they will continue to pay their dividend.

Based on improving management fundamentals, and the sheer size of XOM operations, they have the potential for stock price gains.  With a price/earnings (P/E) ratio of only 22 as compared with Chevron, symbol CVX, of 30, Exxon is going into my portfolio.


M* MoneyMadam

Disclosure:  Long XOM

2011 Portfolio up over 130% or 18.% per year



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Sunday, February 14, 2016

Seven Dividend Stocks for 2016



Mike Holland, veteran money manager and frequent contributor to financial  news shows, was on The Nightly Business Report this last Thursday.   Back in the 1980's, Mr. Holland would discuss investing on Louis Rukeyser's "Wall Street Week in Review." I think he was even one of Lou's elves.

More recently on the Nightly Business Report, Holland listed seven dividend stocks for income investors to consider.  Since one of the early lessons in life is to seek expert advice, I decided to take advantage of this expert's advice and make these seven stocks the focus of my analysis this week.







In this post, I overlay my M* 2016 Dividend screening criteria on these seven stocks to determine if I should include one or more in my portfolio.

My 2016 screening criteria are in the table below.



The seven stocks, in alphabetical order are Chubb (CB), General Electric (GE), Johnson and Johnson (JNJ), JP Morgan (JPM), Three M, (MMM), Microsoft (MSFT), Exxon Mobil, XOM.

Chubb (CB)

Chubb, the smallest cap. stock in the group has solid fundamentals.   See the table below.



CB earned over eight dollars per share and paid out only 30% of that in dividends.  With a D/E ratio of only .14 this is a solid stock.  Unlike the life and health insurers, as a property and casualty insurer, Chubb is less vulnerable to interest rate influences than the life insurers.

My major concern about CB is their low yield.  At 2.34%, CB is below my minimum criteria of 2.75%.  Therefore, you will not see CB in the 2016 portfolio.   However,  covered calls on Friday were encouraging so we will see on Monday if we can make up for the meager yield with covered calls.

Another fundamental that makes me want to own Chubb is the dividend growth of 20.92% per year over the past 5 years.   Dividend growth is greater than revenue growth (rev. growth = 7.43%) but I would settle for a pay raise of 7.43% should the dividend growth reflect revenue growth.

General Electric (GE)

I can understand including GE as a core holding if you look at 100 years of history, but even I do not have a hundred years to wait.   I need to be sure my stocks can pay the dividend and increase it.  To pay and increase dividends, the company has to earn more than it pays out.

If recent revenue growth was compelling, suggesting that earnings also will grow, then I might consider GE, but this is not the case so GE is out of the picture.  See the table below.



Johnson and Johnson (JNJ)

JNJ is the big engine that could!   As you can see in the table below, JNJ has revenue growth, it has dividend growth, it has almost no debt, and almost no excitement.  Covered calls are non existent.  Johnson and Johnson is truly a core holding that I own and I expect every conservative investor owns.



 
You get global diversification without significant currency risk when you own JNJ.  It just seems so boring which is exactly what a conservative income investor needs for some of her portfolio.

You can go broke on boring.  Who can live on 2.95%, so let us look onto to the rest of the list.

J.P. Morgan (JPM)

JPM, a bank stock is of interest.  Technically, the dividend has increased an average of 148% over the past five years.   This would seem incredible until you add in the history.  JPM, like all big banks was a victim of the 2008/2009 disruption of credit markets.  Having cut their dividend to almost nothing, they clawed their way back to deliver a healthy dividend yield of just over 3%.

JPM has paid the price of the global financial crisis on 2008/2009 and that is evident in their balance sheet.  With a D/E (debt to equity) ratio of 1.46, JPM is not a candidate for inclusion in my 2016 portfolio or in my personal portfolio.

The table below tells it all.



3M (MMM)

I used to own 3M.  I cannot remember why I sold it: probably because I wanted more than 3% yield and sold covered calls that were called away.  Today, I am looking at MMM again.

Revenue growth is slower than dividend growth.  This tells me, I may not see the same dividend growth in the future as has occurred over the past five years.  Yet, if dividend growth slows to equal revenue growth, then I would still be happy.  If revenue growth slows as well, there could be trouble.

I look to covered calls to make up the difference and on Friday (2/12/2016) I found a few good calls.  The good balance sheet (D/E .75), relatively good yield (2.88%) and prospects for additional income from covered calls make MMM an excellent inclusion in my 2016 portfolio.



 Microsoft (MSFT)

I like MSFT even more than I like MMM.  Of the seven stocks reviewed here, MSFT is the only stock with revenue growth close to dividend growth.  Moreover, MSFT has a solid balance sheet and covered call opportunity.  MSFT will be added to the 2016 portfolio this week.

See the table below and you will note MSFT has but one negative, the ratio of earnings paid out in dividends.  Dividends paid out are nearly 100 percent of EPS; this is not a lot margin for error.  However, the covered call potential and solid balance sheet, make MSFT worth the risk.



Exxon Mobil (XOM)

Exxon Mobil has never been my favorite major integrated oil company.  I have always preferred Chevron (CVX.)   Yet if Holland suggests it, why not take a look.  

Exxon's yield is the best of the group at 3.6% and they have very good financials with a D/E ratio of .12.   But, look at the revenue.   The oil patch shake up has hurt XOM's revenues mightily.  Since XOM has negative revenue growth, I will not include it in my 2016 portfolio,  I will eliminate XOM immediately.



Further Action

During this short week, which happens to include options expiration on Friday, I will look to add to JNJ as if it is a money market fund;  I will look to add MMM provided the calls make it worth it; and I will add to MSFT.  CB cannot be included in 2016 portfolio as the yield is too low, but if calls are good, I just might add.  Although, I have a number of insurance companies in my stable right now.

I will post my trades should you be interested in seeing how this works out.

Thank you Mr. Holland for these seven ideas.  Usually it takes me 20 tries to find even one stock I like and you gave me 3 out of 7.   Good work.

M* TheMoneyMadam

Disclosure:  Long JNJ, MSFT,  May add CB and MMM

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