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 |
P/E Ratio (TTM) |
CAPS Rating |
Payout Ratio |
Est. Annual Earnings Growth |
|---|---|---|---|---|---|---|
|
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.
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