I am truly grateful for my dedicated readers who engage with me daily in the comment section discussing trade ideas, macroeconomic developments, politics, and other important topics. Your engagement means a lot to me, so thank you!
Among the many requests I receive each week, one stood out as particularly challenging. It took me several days to figure out how to respond to it. The request asked me to share my top three stock picks from all my 2024 articles so far, at today’s price levels, if I were to invest 5% of my portfolio in each.
I maintain a concentrated portfolio of just 21 stocks, focusing on my highest-conviction picks. While there’s a case for buying everything I’m bullish on, I prefer to hold fewer positions to have a more significant impact on my portfolio performance.
I believe in safety and secular benefits, especially in the current market environment. Factors like inflation, interest rates, government debt levels, and elevated valuations are key considerations in my investment decisions. I look for companies with consistent dividend growth, healthy balance sheets, and secular growth potential.
Finding three companies to invest in was challenging, given my already concentrated portfolio. It’s akin to the debate over who the best NFL quarterback is at the moment – there are many factors to consider. Ultimately, I aim to make informed decisions that align with my investment philosophy and goals.
In conclusion, I appreciate the thought-provoking question from my reader, and in this article, I will share my top three stock picks from my 2024 articles based on the criteria discussed. Thank you for your continued support and engagement. Having a strong offensive line is crucial for a quarterback to be successful in football. Similarly, there are many factors that influence a quarterback’s performance, such as coaching, personal circumstances, and more. Just as a QB relies on his offensive line to protect him and create opportunities, a successful investment portfolio also needs strong assets to thrive.
In a recent analysis of my portfolio, I found three stocks that I consider to be my top picks at the moment. While I believe all 21 stocks in my portfolio have their strengths, these three stand out to me for their potential for growth and stability.
One of my top picks is Canadian Natural Resources (CNQ), a company in the oil and gas sector. Despite considering Texas Pacific Land (TPL) initially, I chose CNQ as my top oil and gas investment due to its strong position in low-cost oil sands in Canada. With proven reserves and a focus on dividends, CNQ has the potential to generate significant free cash flow at current oil prices. Additionally, the company’s commitment to returning cash to shareholders through dividends and buybacks makes it an attractive investment opportunity.
Another top pick in my portfolio is RTX Corporation (RTX), a company in the aerospace and defense industry. With a balanced exposure to both defense and commercial markets, RTX has a strong track record of innovation and growth. Despite recent gains in the stock price, I believe RTX remains one of the best dividend stocks on the market due to its solid business fundamentals and potential for further growth.
In conclusion, just as a quarterback needs a strong offensive line to succeed, a successful investment portfolio requires strong assets to thrive. By carefully selecting top picks like CNQ and RTX, investors can position themselves for long-term success and growth in their portfolios. Collins Aerospace is a leading company that produces a wide range of products for the aerospace industry, including advanced materials, landing gears, avionics, safety lights, business class seats, and more. With global demand for commercial airplanes expected to increase by over 40 thousand units through 2042, Collins Aerospace is well-positioned for growth.
In addition to Collins Aerospace, the company also owns Pratt & Whitney, which manufactures advanced engines for defense and commercial customers, including the F-35 jet. Every second, a plane powered by a P&W engine takes off and lands. The company also owns Raytheon, which specializes in defense products such as advanced missiles, defense systems, and space systems.
Due to the post-pandemic requirements and increased defense spending in NATO nations, the company is experiencing growth, with $25 billion in orders in the first quarter of 2024 and a backlog exceeding $200 billion. With a dividend yield of 2.4% and a strong EPS growth outlook, the company is expected to grow EPS by 7% this year, followed by 14% and 13% in 2025 and 2026, respectively.
With a 20x multiple reflecting its aerospace operations, the company’s stock price has potential for a 30% upside and a double-digit annual return outlook. It also has a BBB+ credit rating, making it an attractive investment opportunity. Canadian Pacific Kansas City, a railroad company, is another top pick due to its unique network connecting all three North American nations. With exposure to bulk and merchandise business, as well as access to important export/import ports, the company is well-positioned for growth. Following its merger with Kansas City Southern, Canadian Pacific Kansas City Ltd. expects stronger pricing power and improved margins in the future. The Importance of Regular Exercise
Regular exercise is an essential component of a healthy lifestyle. Not only does it help to maintain physical fitness, but it also has numerous other benefits for overall well-being. Exercise has been shown to improve cardiovascular health, strengthen muscles, and reduce the risk of chronic diseases such as diabetes and obesity.
In addition to the physical benefits, regular exercise also has a positive impact on mental health. It can help to reduce stress, anxiety, and depression, as well as improve mood and boost self-esteem. Exercise has even been found to increase cognitive function and improve memory.
Despite the many benefits of regular exercise, many people struggle to make it a priority in their daily lives. However, incorporating exercise into your routine doesn’t have to be a daunting task. Even small changes, such as taking the stairs instead of the elevator or going for a short walk during your lunch break, can make a difference.
It’s important to find a form of exercise that you enjoy, whether it’s running, swimming, yoga, or dancing. By finding an activity that you look forward to, you’ll be more likely to stick with it in the long run. It’s also important to set realistic goals and create a schedule that works for you.
Remember, the key to reaping the benefits of regular exercise is consistency. By making physical activity a regular part of your routine, you’ll not only improve your physical health but also enhance your mental well-being and overall quality of life. So lace up your sneakers, grab a friend, and start moving towards a healthier, happier you.