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5 Impressive Stocks in This Difficult Market

by: Dividends4Life August 19, 2008 | about stocks: CNI / HCP / JNJ / MCD / WMT    

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Now that more than half the year is behind us, I thought it would be interesting to look at my top 5 performers through July 31, 2008. As dismal as the stock market has been this year, there are still some bright spots. My top five performers have all achieved double-digit positive total returns since I owned them and positive returns in 2008. Here they are with comments:

#5 - McDonald's (MCD) + 4.4% Total 2008 Return
Last November, I bought this burger maker for $57 in spite of only paying one dividend per year. I was rewarded by MCD moving to quarterly dividends and a 2008 total return of 4.4% and 13.8% since my Oct/2007 initial purchase.

#4 - Johnson & Johnson (JNJ) + 6.4% Total 2008 Return
I waited on a good entry point for JNJ for a long time. In early February of this year, a door opened and I snatched up some shares at $63. It has been well worth the wait with JNJ earning 6.4% this year and an annualized yield of 16.6% since my July/2007 purchase.

#3 - Health Care Property Investors Inc. (HCP) + 10.4% Total 2008 Return
HCP is a hold-over from my yield chasing days. With a July 31, 2008 yield of 5.05%, it keeps the quarterly cash rolling in. However, with a 10.4% total return for 2008, it is not just another pretty dividend stock. Since March 2005, when I opened my position, it has earned me a 15.3% annualized return.

#2 - Canadian National Railway Company (CNI) + 11.5% Total 2008 Return
On July 31, 2008 CNI had the lowest dividend yield of all my holdings. I had to swallow hard when I initiated a position in it last November at $47. Now, I am breathing easy with a 30.2% annualized return since my Nov/2007 initial purchase.

#1 - Wal-Mart (WMT) + 24.8% Total 2008 Return
WMT cut its dividend growth rate and accelerated its share price appreciation. Earlier this year I put it "On The Shelf" since it no longer met meet my minimum criteria for additional purchases. On July 31, 2008, WMT's life-to-date annualized yield was 20.5% and was up nearly $10 from my July 2007 initial purchase.

Unfortunately, not all of my holdings performed this well. For the very top, there is a bottom. Thursday, we'll take a look at my bottom five holdings.

Disclosure: Long JNJ, CNI, HCP, MCD and WMT

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This article has 6 comments:

  •  
    Aug 19 08:15 AM
    That is a beautiful portfolio. Your buy points seem a bit "toppy" to me, (hence the moniker buyitcheap) but 10 years from now, what difference will it make, really. Great selection and diversification. One to put on your radar: BMR - biomedical realty reit.
    Reply
  •  
    Aug 19 09:30 AM
    I hold common stock in four of your listed five, and they've been stalwarts in my portfolio during 2008 (knock-on-wood...).
    Reply
  •  
    Aug 19 01:34 PM
    Are you kidding? This is an article? Shouldn't there be some useful information here?

    Well, here's an article of my own. My five best performing stocks this year are Boston Beer Company (SAM), Wellcare Group (WCG), Vertex Pharmaceuticals (VRTX), Verenium (VRNM) and Ceradyne(CRDN). I bought them all at recent lows and they've done very well for me. Probably that means you should buy them and they'll do well for you too. Right?
    Reply
  •  
    Aug 20 01:11 PM
    Agree with Seeking Value. Don't break your arm patting yourself on the back.
    Reply
  •  
    Aug 22 08:41 AM
    My documeneted portfolio is MO PM BRK JNJ BUD KFT and BNI and have taken short term positions in MSFT KO BA XOM when they have fallen.You really know who has ben swimming naked when the tide goes out
    Reply
  •  
    Aug 24 07:16 AM
    I second the others, I would like a why with the what. Post your thesis for purchasing the stock and why you think it will/won't keep performing. Also your take on why it was succesful thus far this year would be helpful.
    Reply
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