Johnson & Johnson Vs. The S&P 500

JandJ

As a new young investor, I find myself constantly reviewing many different stocks and comparing their performance against the S&P 500 index. In my last article, I researched DNP Select Income Fund (NYSE:DNP) and found that it had outperform the S&P 500 index in the last 29 years since it was founded. My analysis of DNP Select Income Fund can be found here. Every investor are looking for the next investment that will provide them a decent return in the future. The true is that very few companies outperform the market over a long period of time. An example of this was shown in the looking back at the Nifty Fifty stocks that were once deemed a solid buy and hold growth stocks back in 1960 – 1970. The lesson learned I took from the Nifty Fifty stocks was that even if a company is a large corporation and has a long performance track record, there are no guarantee it will continue to outperform the market much less be in business the next fifty years. For this reason, the number of companies that outperform the stock market in the long run are very little.Johnson & Johnson (NYSE:JNJ) is one of those companies that has consistently outperform the market in any given economic condition. This article will provide evidences that show Johnson & Johnson has been outperforming the S&P500 since 1944 and why this stock need to be in everyone’s portfolio.

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DNP Select Income Fund Vs. S&P 500 Index Fund

Stock-Market-Index
Source: Fool.com

In the search for better stock performance from my own personal portfolio, I decided to research more into this income fund. The reason for my interest was due to a colleague of mine at work who recently recommended me a fund called DNP Select Income Fund (NYSE:DNP). His investment thesis into DNP was due to the fund providing monthly income at a very little cost. He liked the fund so much that he invested bi-weekly through his 401k plan. This sparked my interest in researching this fund and see if it could be a better investment than an investment in the Vanguard S&P 500 ETF (NYSEARCA:VOO).

DNP Select Income Fund

To make an assessment of the two funds, I went on Schwab website to research about DNP and VOO in more depth. According to Schwab, DNP Select Income Fund is a close-ended investment company that focuses investing in various sectors within the utilities space, while providing long-term growth of income. This fund has been around since January 1987. Below is a summary of the fund information.

Source: Charles Schwab & Co., Inc

From the Fund Profile, DNP Select Income Fund’s total holdings currently stand at 118. The top 10 holdings within this fund are made up of mostly energy companies and the top holdings take up 39.6% of the entire total assets. DNP top 10 holdings can be found in the figure below.

Source: Charles Schwab & Co., Inc

DNP is also actively managed to follow the U.S Utilities indexes. Since it is actively managed, the net expense ratio is higher than those of passively managed funds such as the Vanguard S&P 500 Index Fund ETF. The key information from DNP’s fund profile I found was the annual report net expense ratio which was 1.03%. This will be a key information to use to assess the overall performance against other funds. The second information I found from researching DNP was the performance track record for the last 10 years. Below is the fund’s overall performance growth since 2006 with a $10,000 initial investment.

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Amazon 1-Click Payment to Discover Card, Get $10 Amazon Credit

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Great deal from Amazon. Log onto your amazon account and switch your default 1 click payment to Discover card and receive an instant $10 amazon credit.
Promotion open to both Prime and non-Prime Amazon account holders

via Mobile Web Browser:

    • Click here to see if the following promotion banner pops up: Screenshot
    • Follow on-screen prompts
    • Alternatively, click here to visit Amazon.com mobile site home page
    • Scroll down to ‘1-Click Settings’
    • Turn ‘Mobile 1-Click Ordering’ setting to On
    • Add, set or change Payment Method to your Discover Card on file
    • If eligible, a one-time $10 Amazon.com account credit will be added to your account automatically

via Mobile App:

  • Download & install the Amazon mobile app (iOS or Android)
  • In app, navigate to ‘Settings’, then ‘1-Click Settings’
  • Turn ‘Mobile 1-Click Ordering’ setting to On
  • In ‘Shipping Address & Payment’ section, add, set or change default 1-Click payment method to your Discover on file
  • If eligible, a one-time $10 Amazon.com account credit will be added to your account automatically

Method I Tried That Worked:

  • With my Android Phone, I clicked on the Mobile Web Browser link here
  • Click on the button to change my 1-Click Ordering Setting to add my Discover Card
  • Tired to buy a 64GB MicroSD here and Termite Spray here. (Make Sure the product is ships from and sold by Amazon.com)
  • $10 discount automatically applied in my card.
  • You must proceed through checkout to see the $10 discount

Very simple way to receive $10 discount from Amazon!!! Must TRY!

Slick Deal: JCPenney Coupon Giveaway: $20 Off $20, $100 Of $100

jcpenney

If you are going to the mall this weekend or shopping, visit JCPenney to take advantage of this great slick deal.
JCPenney is offering $10 Off $10, $20 Off $20, & $100 Off $100 coupons to the first 100 customers to visit their stores. To view the promotion, go here.
This is a slick way to buy some new apparel for the fall.

JCPenney also has a great deal on Stafford Men’s Easy Care Dress Shirts. To see the deal, visit here.   Apply SHOP15 at checkout and receive 15%OFF. Free Shipping over $100.

 

Slick Investing – Do Not Buy At These Levels

Wall Street Sign Manhattan, New York, New York, USA

Source: Market-Barometer.com

The U. S stock market has been on fire these past few weeks even after the results of the Brexit and the continuation of the slow growth seen in the global markets. While it was great for all investors who had their investment in the stock market, from a contrarian point of view, the recent rise in the stock market was concerning. Every investors’ goal should be to make money in the stock market. That is why we invest in the first place, but is now the right now to jump into U.S stock market? This article will provide justification and rationale on why average investor should not buy into the market at these levels.

First, we look at the growth rate of companies within the U.S. Below showed the U.S GDP Growth Rate for the past 10 years according to Trading Economics.

Source: tradingeconomics.com

What this showed was that the growth of the U.S has been steady at around 6% to -2% growth rate for the past 6 years. The only time the U.S growth rate was below -2% was in 2009. While many great financial gurus out there preach that you cannot time the stock market, Warren Buffett has said repeatedly that an investor should not be jumping into the stock market unless it looks attractive. He said, “the stock market is a no-called-strike game. You don’t have to swing at everything – you can wait for your pitch”. At current market levels, the S&P500(SPY) is positive 4.21% since beginning of the year while the Dow Jones Industrial Average (DIA) is positive 4.14% for the year. Plain and simple, this is not a buyer market, it’s a seller market. Now sure, there are bargain out there such as Wells Fargo (WFC), Warren Buffett’s favorite holding, but we do not know the true impact of Brexit will have on Wells Fargo profitability and operation. It’s selling at a discount for a reason. Now, long term investor can look at this as an investment opportunity and look to buy Wells Fargo. But for average investor who do not have time follow each individual companies and want to invest safely in an U.S stock market index fund, the yearly performance and the U.S recent growth rate trend showed that now is not a time to buy. In hindsight, the time to buy was during 2008 when GPD dropped to -6% but many investor did not see that during that time. What we can do is to be at least better educated and prepared for when the next opportunity is presented to us.

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Books Recommendation With 3-Months Free Audible Membership

If you have amazon prime membership, you need to check out this sweet deal right here.

What can do you with 3 months worth of audible membership?

Here are the benefits

  1. Get 3 months free, with 1 free audiobook download each month.
  2. Choose from 180,000+ titles. 
  3. Download the free Audible app and listen anywhere you take your iOS, Android, or Windows device. If you have a Kindle, your Audible purchases will be waiting in your “Audiobooks” tab

Here are three books I recommend reading that will provide ideas and insights on how to produce a passive slick income, self improvement and stock investing.
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Slick Income Recap – June 2016 Recap

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In the pursue of generating slick income, here is my June 26th to July 3rd weekly report to you! This report will document the monthly income gain off slick income producing ideas. Hopefully this will help you to start getting into creating slick income as well.

Apps Reward

Slidejoy carats reward: 2950 = ~$3. (1000 carats = $1)

ReceiptHog Gold chip: 547 = ~$2.50(1000 goldchip = $5)

Shopkick: 780 kicks = ~$3 (1250 kicks for $5)

Stock Income from Robinhood

PIMCO High Income Fund: 3 shares produce 0.31 cents this week

Freelance Gigs

Writing articles for Seekingalpha: $159

Total Income $123.62

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Top 5 Books in Passive Investing

simple-passive-investing1

Source: simplepassiveinvesting.com

Passive investing is one of the easy method to generate passive income. With the right stock or index fund, the average person like you and me can sit back and collect an easy paycheck each month. Here are the top 5 books on I have read on passive investing.

  1. The Little Book of Common Sense Investing by John Bogle

This book is the bible for passive investor looking to produce passive income. John Bogle provides tremendous information on why you should invest passively in U.S stock index fund rather than chasing the glorious returns of individual stocks. He backs his thesis on choosing index fund over individual stocks with historical investment returns from the two investments. The book is very short as it is only 216 pages and it is very easy to understand what John Bogle is writing about. He does not use strange terminology that you would find in technical analysis books. But, don’t take my word for it,  here is the review of the book from Warren Buffett. “There are a few investment managers, of course, who are very good – though in the short run, it’s difficult to determine whether a great record is due to luck or talent. Most advisors, however, are far better at generating high fees than they are at generating high returns. In truth, their core competence is salesmanship. Rather than listen to their siren songs, investors – large and small – should instead read John Bogle’s The Little Book of Common Sense Investing.” – Warren Buffett, Chairman of Berkshire Hathaway, 2014 Annual Shareholder Letter.

You can read more about the book here:

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Steps and Behaviors to Adopt to be a millionaire

frugal

By: JOHN RAMPTON

There are approximately 35 million people who are millionaires in the world. As Robert J. Samuelson states so perfectly in The Washington Post, “That’s about 5 percent of the U.S. adult population (241 million in 2014), or one in 20. Rarefied, yes; exclusive, no.” Though the population numbers have gone up in the last year, they still prove a point. It’s totally possible for you to become a millionaire.

I personally have been a millionaire several times in my life. I’m an entrepreneurand take chances. Sometimes they pay off and sometimes they don’t. The following are a few of the tips that have helped me to become and stay a millionaire over the past couple years.

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