- KO
- MMM
- KMB
- PG
- MAT
- EAS
I replaced PEP with KO, because PEP has a new CEO, creating risk, while KO for the last 11 quarters or so continues to exceed analyst earnings estimates, along with the fact that KO has a huge 13% stock buyback, which just began 11/1/2006, plus KO has a much higher dividend than PEP. I still view PEP as a great company, and like that it has the blockbuster snack food business, and would consider preferring it to KO, but for now, I view KO as the better choice of the two great companies.
I added EAS because I do want a utility stock in the portfolio. It does meet my criteria of annually raising its dividend and being in a business which people need irrespective of business cycles.
I removed ABT because I worry about the litigation risks relating to their stent business. Plus, I do think drug companies present too much litigation risk, in general.
MMM does have some business cycle risk, but I think it is a reasonably manageable risk. Any portfolio does want some balance, and MMM meets so many of my criteria.
