It’s the beginning of the month and I’ve got a few investing ideas for the Financial Rebel Fund in July. While I’m looking into a few possible sectors, the common theme between all the possibilities is dividends.
The fund isn’t a flash in the pan or a short-term investment. It’s something that will grow over years. I want to start it out right, which means investing in a blue chip stock with healthy dividends.
However, having capital doesn’t mean you have to invest it immediately. Whatever investments I choose for the fund will have to meet my price requirements. I’m patient. I like stocks to come to me verses me going to them.
Here are four stocks that are on my shortlist for July. Keep in mind, they may not be buys just yet. With each possible stock investment, I develop a “get in” price. I stick to this price unless there are certain developments that require a reevaluation. At this time, all four of these stocks need to come in a little more.
Verizon (Symbol: VZ) — earnings report on July 23, 2010
AT&T (Symbol: T) — earnings report on July 22, 2010
Chevron (Symbol: CVX) — earnings report on July 30, 2010
ConocoPhillips (Symbol: COP) — earnings report on July 28, 2010
Verizon and AT&T are part of my smartphone play. This field will continue to grow and I’m happy (as an investor, not consumer) that both companies are getting rid of their unlimited data plans. The tighter controls will end up being more profit.
But, which one do you choose? Rumors surround Verizon. Will the iPhone actually come to Verizon in 2011? Will it be an altered version? Will Motorola’s Droid X energize Verizon’s customer base? The smart play is to basket both together, but the fund is just starting out and has limited capital, so I have to pick one company for now—unless I choose an ETF.
Oil is another area I’m looking at (not really a big surprise). China’s demand is increasing at a ridiculous rate and there are a few key companies, like Chevron and ConocoPhillips that are solid players in the field. And both pay dividends. Additionally, natural gas could be another play.
Over the coming couple of weeks I’ll be looking at each of these four companies in more detail on Financial Rebel.
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