Sell in May

 

Nearing the final turn.

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Six Weeks to Retirement

 

As mentioned in my April commentary, there is the saying “Sell in May and Go Away”.  Although I don’t advocate a full sell off, it is often a good time to cull out some of the stocks you may have been wanting to shed.  I plan on selling a couple of low yield stocks and sit on the cash until my regular fall purchase cycle.  I’m looking at MMM and ITW as possible sells.

 

With the continuous climb in the markets and the increasing likelihood of a pullback or correction over the summer (remember no one can predict the market), I feel this isn’t a good time to buy.  However if you have a lot of idle cash and want to get it working, especially with dividend producers, here is a ranking of the best dividend stocks using my rudimentary model.  I look at various factors such as dividend yield, dividend growth, PE ratio, Price/book ratio, Price/sales ratio, analyst targets, price relative to 52 week highs and lows and a few other factors.  I put it in a spreadsheet and rank each company on the various factors.  Then I produce a scoring using the rankings and list them in order of best buy to least best buy.  That was the basis of the stocks I analyzed in my last post.  And as you saw, it proved to be a very good model for purchase decisions.  I did a quick look at the bottom 5 stocks from my December model ant they just kept pace with the market, vs the top 10 that doubled the market during that time.

 

Here is my current ranking as of May 10, 2014.  Keep in mind, these are all good stocks to own, it is just an indication of which ones might be better to buy now.  Note that the Canadian banks rank quite well in this model.

If anyone would like a copy of the full spreadsheet, just email me at brianborgford@hotmail.com.

 

 

Company Ticker Score
Total ADR TOT 120
Cardinal Health CAH 129
Intel Corp. INTC 176
Lockheed Martin LMT 180
Northrop Grumman NOC 183
Occidental Petroleum OXY 186
National bank NA 187
Gen’l Dynamics GD 197
Royal Bank RY 200
Bank of Montreal BMO 202
CIBC CM 209
United Technologies UTX 210
Raytheon Co. RTN 210
Chevron Corp. CVX 210
BCE BCE 211
Toronto Dominion TD 214
Telus T.TO 215
Home Depot HD 217
Texas Instruments TXN 217
Smucker (J.M.) SJM 222
Wal-Mart Stores WMT 225
Boeing BA 230
Connoco Philips COP 232
Verizon Communic. VZ 235
Int’l Business Mach. IBM 239
AT&T Inc. T 249
Philip Morris PM 250
Royal Dutch Shell ‘A’ RDS/A 252
Novartis AG ADR NVS 263
Deere & Co. DE 263
Procter & Gamble PG 264
Trans Canada TRP 266
Thompson Reuters TRI 267
Emerson Electric EMR 272
Exxon Mobil Corp. XOM 275
Pfizer, Inc. PFE 277
Johnson & Johnson JNJ 278
Automatic Data Proc. ADP 279
McDonald’s Corp. MCD 280
PepsiCo, Inc. PEP 281
Coca-Cola KO 290
Merck & Co. MRK 293
Baxter Int’l Inc. BAX 298
Du Pont DD 299
Altria MO 307
Unilever PLC ADR UL 314
Bristol-Myers Squibb BMY 315
Kimberly-Clark KMB 318
Travelers Cos. TRV 319
Illiois Tool Works ITW 333
3M Company MMM 339
Colgate-Palmolive CL 348

 

 

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About borgford

Feel free to contact me with questions: brianborgford@hotmail.com
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