Recs

9

A Grown-Up Portfolio

In a recent blog, CAPS player TheMiracleDJR discussed setting up a "wise and mature" portfolio using "a base of highly recognizable, mostly consumer facing stocks that I understand and can opine on, and might actually invest in as I see values of my favorites drop." Sounds like a good idea.

The Motley Fool's CAPS screener went to work with my take at screen settings for wise and mature stocks.

  • Market capitalization greater than $10 billion.
  • Price-to-earnings ratio positive and less than 18.
  • Long-term debt to equity ratio less than two.
  • Current dividend yield of at least 2.5% -- a bit more than the S&P 500 average.
  • Earnings growth rate for the past three years greater than 2.5%.
  • Finally, a CAPS rating or four or five stars (out of five) to focus on companies our Foolish community believes are the best prospects.

Company

Current Dividend Yield

EPS Growth Rate
(last 3 years)

P/E Ratio (TTM)

CAPS Rating

Payout Ratio

Est. Annual Earnings Growth
(next 5 years)

Colgate-Palmolive (NYSE: CL  )

2.7%

10.8%

18.1

****

44%

9.1%

Kimberly-Clark (NYSE: KMB  )

4.1%

2.8%

15.5

*****

61%

6.6%

BlackRock (NYSE: BLK  )

2.8%

13.4%

17.2

****

39%

12.7%

AstraZeneca (NYSE: AZN  )

4.9%

15.2%

9.3

****

43%

1.6%

McDonald's (NYSE: MCD  )

3.0%

21.6%

17.1

****

49%

10.3%

Intel (Nasdaq: INTC  )

3.1%

21.2%

10.9

****

30%

11.8%

NextEra Energy (NYSE: NEE  )

3.8%

6.7%

14.6

*****

51%

5.5%

Sources: Motley Fool screener results and Yahoo! Finance. TTM = trailing 12 months.

The seven stocks cover six sectors. In addition, each of these has at least a bit of the consumer-facing business that TheMiracleDJR is looking for.

  • Colgate-Palmolive and Kimberly-Clark products are in nearly every household.
  • BlackRock's iShares ETFs are in many portfolios and have become increasingly popular.
  • Prescriptions for AstraZeneca medicines get filled every day.
  • McDonald's serves millions daily.
  • Intel chips power our computers.
  • NextEra provides power to millions of homes.

Even though this list looks like a nice, core portfolio, the results are just a starting point for further research, not outright buy recommendations.

What's your opinion? Add your favorite core holding with a comment below.

Related Foolishness:

Fool contributor Russ Krull owns shares of McDonald's, but has no financial position in any other companies mentioned in this article. Motley Fool newsletter services have recommended BlackRock, Intel, Kimberly-Clark, and McDonald's and have recommended creating a diagonal call position in Intel. The Motley Fool owns shares of Intel and NextEra Energy and has bought calls on Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy that's wise and mature, but still knows how to have fun.


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Russ Krull
rd80

Russ is a naval architect and retired Coast Guard officer with an interest in financial markets. He's been a contributing freelancer for The Motley Fool since 2009 and a CAPS player and blogger since 2007.

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Related Tickers

10/22/2014 10:23 AM
AZN $68.98 Down -0.02 -0.03%
AstraZeneca plc (A… CAPS Rating: ****
BLK $318.93 Down -0.23 -0.07%
BlackRock CAPS Rating: ****
CL $65.35 Down -0.07 -0.11%
Colgate-Palmolive CAPS Rating: *****
INTC $32.63 Up +0.02 +0.06%
Intel CAPS Rating: ****
KMB $112.30 Up +1.07 +0.96%
Kimberly-Clark CAPS Rating: ****
MCD $90.97 Down -0.05 -0.05%
McDonald's CAPS Rating: ***
NEE $96.18 Up +0.66 +0.69%
NextEra Energy, In… CAPS Rating: ****

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