Olympic Style Investing
Colleen is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Every two years the Olympic Games grab the attention of our nation. The Games bring out a special kind of patriotism in Americans as everyday people suddenly care who can run the fastest, and Ping Pong becomes Table Tennis and a source of national pride. We count medals and root on our country’s athletes, often in sports we never watch outside of the Olympics.
Building a successful portfolio and making it as an Olympic athlete have a lot in common. While one may require better abs (I’ve been watching a lot of swimming), neither are built overnight. Olympic athletes show dedication and resolve as they train for years with a clear goal in mind.
When you start out in investing, you shouldn’t just throw your money into the latest hot stock you heard your friends talk about. You need to know your end goal and what you want to accomplish with your portfolio to help determine the right picks to make. You need to do your research and planning. You need to show resolve when the markets are down, but also know when it’s time to sell. It isn’t always easy, but it’s certainly worth it.
Below I look at two stocks – both official Olympic Worldwide Partners – that can help bring lasting success to your portfolio.
The Coca-Cola Company (NYSE: KO) embodies the Olympic spirit as consumers in more than 200 countries enjoy 1.8 billion servings a day of their products. Trading at a 52-week high, while the stock may not experience impressive growth, it doesn’t show signs of slowing down either. Consumers buy Coca-Cola products in good and bad economic times making it more likely to continue growing.
If you’re concerned about the recent announcement to split shares of Coca-Cola, take a look at Motley Fool analyst Austin Smith’s explanation on why this is a non-issue. This stock pick also offers steady and increasing dividends. Earlier this year, the company announced its 50th consecutive annual dividend increase, increasing the dividend 8.5 percent from its 2011 rate. If you’re thinking long-term, this stock is a good pick.
If you want to talk about companies providing steady dividends, fellow consumer-goods maker Procter & Gamble (NYSE: PG) certainly earns a high spot on the list. P&G has been paying a dividend for 122 consecutive years, and has increased its dividend for 56 consecutive years. Despite dealing with higher commodity costs, the company continues to show sales growth. If P&G can lower costs, profits will grow giving the stock a boost. While there have been some concerns about the P&G’s management and the company’s direction, the tried and true brand names the company produces are still consumer favorites. I believe in the long run they will keep this stock in the win column in your portfolio.
ColleenLerro has no positions in the stocks mentioned above. The Motley Fool owns shares of The Coca-Cola Company. Motley Fool newsletter services recommend The Coca-Cola Company and The Procter & Gamble Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. If you have questions about this post or the Fool’s blog network, click here for information.