Stock Portfolio Stocks Were Selected Essay

Total Length: 763 words ( 3 double-spaced pages)

Total Sources: 1

Page 1 of 3

("Stock Portfolio," 2011)

What stocks performed the best and worst?

The stocks that performed the best include: EFX, MCD, AAPL, SBUX, PETM and GMRN. The positions that were underperforming the others include: MSFT, AXP, TIF and JPM.

Stocks for given portfolio were selected randomly what would you've done differently?

There would have been a focus on having firms that pay higher dividends and growth. This is when the total returns in the portfolio will be higher in comparison with other strategies.

What factors and why are they important when choosing stocks?

The factors that are most important when choosing stock are the earnings and dividends. The two elements will help everyone to quickly see the underlying strength of the company in comparison with other firms.

An Examination of the Companies in the Portfolio

The different companies that were selected as a part of the portfolio strategy are involving diversification across numerous sectors. To include: financial services (i.e EFX / AXP / JPM), retail (i.e. MCD / TIF / SBUX / PETM) and technology (i.e. MSFT / AAPL / GMRN).
These elements are important, because they are showing how this strategy is focused on building diversification based on balance, growth and dividends. As a result, we are focusing on four companies that are listed on the New York Stock Exchange. While, there were five NADAQ stocks that were selected. The reason why, is to ensure that the portfolio has stability and growth. This is what helped our strategy to outperform the major market averages.

Analysis of the Yields on the Portfolio

To provide the portfolio with added amounts of growth, we have been focusing on those companies that offer shareholders some kind of dividend. The reason why, is because these stocks are generally more stable and the dividends can improve the total return. As a result, we have focused on those firms that can provide the portfolio with consistent dividends. The below table is highlighting the dividends of the stocks in the portfolio in comparison with the Dow Jones Industrial Average.

The Dividends Yield for the Portfolio in comparison with the Dow Jones Industrial Average



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