Stock Gurus: $3k to spend for a year, check my picks

[overst33r]

I have $3k to play with and plan on spreading it out evenly across the following stocks.

I'm choosing mainly dividend type stocks.

• Automatic Data Processing, Inc. (ADP)
• International Business Machines (IBM)
• Pepsico, Inc. (PEP)
• Genuine Parts Company (GPC)
• Eaton Vance Corp. (EV)
• Ford (F)

What would you do differently if you had $3k to play with for a year or so?

 

[soulcougher73]

Im not stock expert but if dump it all into Ford personally.

 

[OCGuy]

What would you do differently if you had $3k to play with for a year or so?

I would put it up my nose.

 

[DaWhim]

buy it all on CIK and have the monthly dividends reinvested.

 

[thegimp03]

I'd put it all in something cheap like Citi, "C", and let it sit there for 35 years. Surely, in that time period, it's gonna go up from $3.81 a share.

Edit: Oh, he said for a year only. Nevermind. I'd consider putting it in something that's currently trading around $1. At least then you could buy a couple thousand shares of it and there's some upside potential. Dividend stocks are good for the long run, but in the short run with $3k to put in them, you may not net even $100 after taxes.

 

[DaveSimmons]

I mostly invest in stock index mutual funds, but I'm buying and holding for the long term not just a year or two.

 

[joesmoke]

id invest in altria group inc. they have a great dividend rate and since they produce cigarettes you know business will always be good.

 

[tk149]

$3000 divided among 6 stocks for only a year.

Unless you find a broker with really low commissions, it's not worth it. You'd have to make 4% just to pay the commissions (assuming $10 per trade). What kind of dividends were you expecting?

 

[Barnaby W. Füi]

Sounds like gambling. I'd put it in a high interest savings/CD/MM account. (which of course have terrible interest rates, but they won't lose anything)

 

[silverpig]

Buy $3k of call options on Apple stock. They'll be in the money after all the fanboys dump their allowances into AAPL after the iPhone 4G release.

 

[overst33r]

$3000 divided among 6 stocks for only a year.

Unless you find a broker with really low commissions, it's not worth it. You'd have to make 4% just to pay the commissions (assuming $10 per trade). What kind of dividends were you expecting?

6-10%. Since I'll open a new account with a brokerage, the fees shouldn't be so bad. i.e. using zecco, i can trade 6 stocks for $4.50 each, which is less than $30.

 

[OCGuy]

Sounds like gambling. I'd put it in a high interest savings/CD/MM account. (which of course have terrible interest rates, but they won't lose anything)

You still have to outpace inflation.

 

[Special K]

I'd put it all in something cheap like Citi, "C", and let it sit there for 35 years. Surely, in that time period, it's gonna go up from $3.81 a share.

After the 2008-2009 banking crisis, I wouldn't be so sure.

 

[JS80]

My guess is you will slightly outperform the market.

 

[overst33r]

Bleh. Not worth the hassle/risk. I will just do a high-yield checking account for 4%. 10 direct deposits are easy!

 

[Barnaby W. Füi]

You still have to outpace inflation.

I know of no way to do that right now, especially in such a short timespan. Gambling surely is not the answer.

 

[zinfamous]

Buy $3k of call options on Apple stock. They'll be in the money after all the fanboys dump their allowances into AAPL after the iPhone 4G release.

yeah but Steve Jobs will be dead in a year. bad idea.

 

[nerp]

ticker: TINY

 

[DeadByDawn]

DZZ

just because you said the word "play"

if it must be stocks and you want something less risky I'd say VTI

 

[tk149]

6-10%. Since I'll open a new account with a brokerage, the fees shouldn't be so bad. i.e. using zecco, i can trade 6 stocks for $4.50 each, which is less than $30.

I am assuming that you will be selling after one year.

You are assuming that you will be able to sell your stocks next year for at least $3000.

There's no such thing as a sure thing, especially in the stock market. If you are going to "buy and hold", then you have to be able to stick with your choices very long-term. Even then, there's no guarantee of profit with only six different companies, which don't even look very diversified.

 

[Gibson486]

i would have picked coke instead of pepsi, but that's just me.

 

[Miramonti]

I recommend sitting on your money and waiting for the market to selloff 10% within 20 minutes, buy the crap out of anything you can find, and sell everything off after the market rallies all the way back.

 

[Lamont Burns]

^^

 

[FelixDeCat]

dp

 

[FelixDeCat]

buy it all on CIK and have the monthly dividends reinvested.

HTS 18% dividend paid faithfully and a relatively stable stock price.

http://finance.yahoo.com/q/hp?s=HTS&a=03&b=30&c=2008&d=04&e=20&f=2010&g=v