I added a large number of names to my Watchlist in August after completing a screener on Koyfin. There are some new names, particularly in my Roth Watchlist.
I have also taken advice not to add new holdings for the sake of diversification. I am only focusing on the top rated holdings in my Watchlists, even if they are not in my target sectors.
Roth IRA
Goal - to add to un-represented sectors in portfolio. These sectors are Healthcare, Defense, Consumer Discretionary and Utilities.
August Watchlist:
Add:
Remove:
For reference:
- S&P Price Gain 1 Year is +14.9%
- S&P 3 Year is +31.5%.
- Portfolio Average Dividend Yield is 2.61%
- Portfolio 95th Percentile Yield is 5.42%
- Median 1 Year DGR - 5.88%
- Median 3 Year DGR - 3.83%
- S&P 500 P/E is 23.46
- Portfolio Median P/E is 21.80
Consumer Discretionary:
- Price vs S&P - +1. 1 Yr +38.8% vs +14.9% and 3 Yr +57.5% vs +31.5%.
- FCF Rank - +1. Div/FCF is 36.63% and less than 50%.
- Conviction - +0.5. Medium.
- Dividend Yield - +0.5. Yield of 4.33% is higher than average, less than Top 5%.
- Dividend Growth - +1. 1 Year DGR of 23.81% and 3 Year DGR of 63.03% are both higher than portfolio medians.
- Weighting - +1. Currently no holdings in sector.
- P/E - +1. 10.46 is less than portfolio median and S&P.
- Source: Koyfin Screener 9/4/23
Defense:
- Price vs S&P - 0. 1 Yr +2.4% vs +14.9% and 3 Yr +7.2% vs +31.5%.
- FCF Rank - +1. Div/FCF is 47.64% and less than 50%.
- Conviction - +1. High.
- Dividend Yield - +0.5. Yield of 2.74% is higher than average, less than Top 5%.
- Dividend Growth - +1. 1 Year DGR of 7.55% and 3 Year DGR of 8.20% are both higher than portfolio medians.
- Weighting - +1. Currently no holdings in sector.
- P/E - +1. 15.50 is less than portfolio median and S&P.
- Source: Pre-2023
Utilities:
- Price vs S&P - +0.5. 1 Yr +2.4% vs +14.9% and 3 Yr +7.2% vs +31.5%.
- FCF Rank - +0.5. Div/FCF is 172.64% and greater than 50%. Definitely a red flag.
- Conviction - +0.5. High.
- Dividend Yield - +1. Yield of 5.62% is higher than Top 5%.
- Dividend Growth - +1. 1 Year DGR of 9.20% and 3 Year DGR of 12.28% are both higher than portfolio medians.
- Weighting - +1. Currently no holdings in sector.
- P/E - +1. 2.77 is less than portfolio median and S&P.
- Source: Koyfin Screener 9/4/23
Taxable
Goal - to track companies in sectors I will most likely sell out of that have higher rankings than current holdings.
I am currently less than 1% weighted in
$CRON and
$BUD, so Sin Stocks are a target sector. I do not have any holdings in Entertainment or Real Estate.
For reference:
- S&P Price Gain 1 Year is +14.9%
- S&P 3 Year is +31.5%.
- Portfolio Average Total Yield is 4.42%
- Portfolio 95th Total Yield is 8.50%
- S&P 500 P/E is 23.46
- Portfolio Median P/E is 18.89
August Watchlist:
Add:
Remove:
None
Defense:
- Price vs S&P - 0. 1 Yr +2.4% vs +14.9% and 3 Yr +7.2% vs +31.5%.
- FCF Rank - +1. Div/FCF is 47.64% and less than 50%.
- Conviction - +1. High.
- Total Yield - +1. Yield of 8.75% is higher than Top 5%.
- Share Count - +1. Share count is down 3.9% since start of 2023.
- Weighting - +0.5. Currently one holding in sector ($RTX), but under target weight.
- P/E - +1. 15.50 is less than portfolio median and S&P.
- Source: Pre-2023
Summary
If I were to be buying right now, I would buy both
$ETD and
$GES in my Roth IRA.
In my Taxable account, I would buy
$OMC. I will most likely be sold out of my current Sin Stock and Defense holdings by the time I make my annual new position adds in January. That will increase the current rankings of
$PENN and
$LMT. I would purchase either of those two prior to
$OMC, if they were tied.