Opinions on my conservative stock shortlist for the Wheel?
Hey everyone,
I've been reading the sub for a while and I'm looking to start running the Wheel in a very conservative way to generate steady income.
My selection criteria were:
- Companies that pay a dividend with a strong and consistent historical track record
- Clear long-term upward trend (several years)
- Growing (or at least stable) net income
- Strong moat, well-established, large-cap companies
After screening and reviewing a lot of names, my final shortlist is:
- WMT
- PM
- V
- CSCO
- KR
- ABBV
- JPM
- MRK
I already have a separate dividend portfolio, so my goal is “only” 10-12% annualized income on the collateral. That would be more than enough for me.
I’m currently studying PNR as a possible addition. I also looked at XOM, SHEL, AXP, BAC and WFC, but:
XOM and SHEL feel too cyclical because of oil prices
AXP looks more volatile than V (although if V is too expensive I might reconsider it)
BAC and WFC feel very similar to JPM
I’d love to hear your honest opinions on this list.
Are any of these names bad candidates for the Wheel?
Would you add/remove any?
Any red flags I might be missing?
Thanks in advance for the feedback!