First...two triggered sales! I've always thought of Adobe (ADBE) and Autodesk (ADSK) as a pair; they entered my portfolio together in January 2016, and now they have exited together. Both stocks were similarly outstanding investments as well. Adobe increased 337% (34% annualized), and Autodesk returned 325% (32% annualized).
This month's stocks are AT&T (T) and Verizon (VZ). I believe both of these companies are fundamentally undervalued; if each of them were to be built from scratch, the cost would substantially exceed their current enterprise values. They both generate large cash flows which easily fund generous dividends. Their telecommunications duopoly represents the level of incumbency that makes for confident investments. And finally: the 5G revolution has just begun (i.e. revenues will be growing again soon).
AT&T (T)
Verizon (VZ)
- $204.8B market cap
- 7.2% dividend yield
- $171.8B revenue
- -2% revenue growth
- $9.8B cash
- $183.0B debt
- $43.1B operating cash flow
- $36.4B free cash flow
Verizon (VZ)
- $231.8B market cap
- 4.5% dividend yield
- $128.3B revenue
- 0% revenue growth
- $22.2B cash
- $151.2B debt
- $41.8B operating cash flow
- $16.1B free cash flow
Boilerplate time...
As a stretch goal: for dividend income purposes, I'd like this portfolio to eventually be as much as a 50/50 split between stocks and bonds. As seen below, it is currently 55/45.
I am in no rush to flip into bonds. I would rather let my winners run forever. However, if in any given month I see no stocks that present themselves as especially good buying opportunities, I have no reservations in simply adding to my bond and/or preferred stock ETFs. It is truly a month-to-month situation (as it has always been!).
For the foreseeable future, I want to track my Big
Amazon (AMZN)
- $1.51T market cap
- no dividend
- $386.1B revenue
- 44% revenue growth
- $84.4B cash
- $101.2B debt
- $66.1B operating cash flow
- $36.6B free cash flow
Microsoft (MSFT)
- $1.75T market cap
- 1.0% dividend yield
- $153.3B revenue
- 17% revenue growth
- $132.0B cash
- $82.9B debt
- $68.0B operating cash flow
- $34.8B free cash flow
Here's my current portfolio (buy and hold). As always, I believe in all of these stocks/ETFs - until I sell them.
Microsoft (MSFT) 13.02%
iShares Broad USD High Yield Corporate Bond ETF (USHY) 12.83%
Xtrackers USD High Yield Corporate Bond ETF (HYLB) 12.76%
Amazon (AMZN) 12.39%
iShares Core U.S. Aggregate Bond ETF (AGG) 11.00%
Global X U.S. Preferred ETF (PFFD) 8.50%
Invesco NASDAQ 100 ETF (QQQM) 5.89%
Alphabet (GOOGL) 4.79%
Invesco NASDAQ Next Gen 100 ETF (QQQJ) 2.68%
Facebook (FB) 2.65%
Intuitive Surgical (ISRG) 2.26%
Verizon (VZ) 1.34%
AT&T (T) 1.34%
UnitedHealth Group (UNH) 1.31%
Visa (V) 1.31%
Costco Wholesale (COST) 1.14%
