During the course of 2012 several of the trust funds have sold off stocks for various reasons, including:
– Exelon (utility) started to go down significantly as their dividend came under threat
– Canon (Japan) fell as part of the overall Japanese stock market
– Metro PCS rose quickly on a takeover attempt
As stocks are sold, cash is returned to the money market account. It is time to re-invest those proceeds in different stocks. Here are the candidates:
– Garmin (GRMN) – the provider of integrated and stand-alone GPS devices for air, water, and land navigation. Current price $38 (52 week range between $35 and $50), dividend yield 4.6% (high). The company seems well run and able to deliver on their dividend with growth
– Gold ETF (GLD) – this exchange traded fund (ETF) invests in gold, and is priced at $161 (52 week range between $148 and $174). There is a management fee of 0.4% / year (taken out of the price). There are no dividends on gold, which just represents physical gold held in storage. Gold as an investment moves higher when there is inflation in currencies and / or times of turmoil. Many also say gold is overvalued, and it does not provide a dividend. When gold is sold, you pay a 28% tax rate (ordinary income) since it is classified as a “collectible”
– Molson Coors Brewing Company (TAP) – the brewer of fine (ha ha) Coors and Molson, with a low P/E and decent track record. The price is $45, near the 52 week high of $46, and the dividend is 2.8%
– Splunk (SPLK) – a provider of software for real-time analytics recently went public and is a potential buyout candidate for a larger firm. The stock price is $33 (52 week range $25 – $39). There is no dividend.
– NTT Docomo (DCM) – a Japanese mobile communications company with many subsidiaries. The price is $14 (52 week range $13 – $18) and the dividend is 4.8%.
– WIPRO (WIT) – an Indian outsourcing firm with worldwide reach. The current price is $9 (52 week range $7 – $11) and the dividend is 1.1%