Best Stocks

It’s already been a month since I asked and since then I guess a lot of new members have joined the community. Again I was wondering what are your favorite stocks? And maybe more importantly why?

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I don’t have favourite stocks specifically to be honest, I don’t look at it that way :sweat_smile: If I don’t favor them, they are not in my portfolio. Not sure what kind of answers you are looking for?

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First of all, try seeing them not as stocks but actual companies you buy a part of. A stock is an impersonal thing, a metaphorical piece of paper.
You become part owner of a company when you purchase a stock, so that company is now working for you and directly (dividend) or indirectly (price appreciation), or both, paying you.

My favourite companies are those that pay a consistent quarterly/monthly dividend, have a (ideally) decade long history of doing so, have a history of raising their dividend while keeping the payout ratio roughly the same and also show capital appreciation over time.

I pick up these companies when their price drops through no fault of their own like a general market drawdown or a competitor doing something dumb and them being part of the (temporary) fallout.

If a company cuts their dividend, I sell it.
If a company raises their dividend while not raising their profit (and thus raising their payout ration), I sell it.
If a company doesn’t pay a dividend, I will buy a small position as a speculative growth story, but not a core holding.
If a company loses it’s moat or worsens their product/service causing loss of profit, I will sell it.

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