Quite often I get asked by friends what my top stock holdings are. They want to know which particular stocks I’m most bullish on. So today, I thought I’d take the opportunity to give Motley Fool readers a glimpse into my own portfolio and look at my top five holdings going into 2019. Here they are, ranked by position size.
Unilever is currently my top holding. I haven’t owned the stock for that long, but I’ve been slowly building a stake in the company this year and I plan to keep increasing my position size when attractive opportunities arise. What do I like about Unilever? Well for starters, I like the consistency of the group’s revenues and profits. With an outstanding portfolio of well-known brands, it’s a ‘sleep-well-at-night’ type stock. Secondly, I like the group’s reach – it’s a truly global player, and it also has significant emerging markets exposure, which provides a growth story. Thirdly, it has an excellent dividend growth track record and the yield is healthy.
Legal & General
My second-largest holding is currently Legal & General. The main reason I like LGEN is that it’s a cash cow. Right now, its yield is over 7%, and I see that yield as sustainable in the medium term. I also like the fact that the company has a diversified business model (i.e. insurance, retirement solutions, and ETFs) which is based on a number of key global growth drivers.
Royal Dutch Shell
My next largest holding is Shell. One of the main reasons I own Shell is that I can rely on its dividends. The company hasn’t cut its divi since World War II, which shows that shareholders are a priority. Of course, the fact that the yield is a high 6.2% is another advantage. Like LGEN, it’s a cash cow.
My fourth-largest holding is packaging specialist DS Smith. The reason I’ve loaded up here is that I see the stock as a play on the online shopping boom. If you buy something online these days, it generally comes in a cardboard box, so I see a long-term growth story here. I also like the stock’s yield (currently over 5%) and the shares look great value at present, so I’ve added more to my portfolio recently.
Finally, my fifth-largest holding is financial services firm Prudential. The key reason I’ve built up a solid position here is the firm’s exposure to Asia. There may be concerns over China/emerging market growth right now, but over the next few decades, I see the demand for financial products rising significantly across these regions. Given that PRU generates around 30% of its revenues from Asia, the firm looks well-placed to benefit. The company also has a good dividend growth track record.
So there you have it – my top five holdings right now. As you can see, there’s a strong focus on dividends, as I believe that they’re fundamental when it comes to generating long-term wealth from stocks. Of course, this is just a snapshot in time. My top five holdings could change in the near term as share prices fluctuate and I add to positions. Speaking of adding to positions, tomorrow I’ll be looking at five stocks I want to buy in 2019, so make sure you check out that article.