Roth IRA Stock Portfolio: Business Plan Advice

It is very important to develop a business plan or a plan of action before opening a Roth IRA stock portfolio. Some questions you may ask are: Which stocks do I want to invest in? What percentages of each sector should I direct my hard earned monies towards? How often should I re-balance my portfolio? Well, always remember that you are in total control of your stock portfolio. Don't let anyone persuade you to invest in a recent hot stock or a get rich investment scheme. This is your money that your working with and ultimately the success of your portfolio and how wealthy you are during your retirement years are a direct correlation of how many wise and well thought out investment decisions are made over your many years of stock market investing.

That being said, you do not need to be a professional stock broker nor a genius like Warren Buffet to develop an income stream within your Roth IRA stock portfolio. Now of course, that is contrary to what any broker may tell you, but believe me, being confident in your business plan, performing your due diligence for each stock investment, and then following through with your ultimate goal is a sure way to achieve a successful stock portfolio.

You may be saying to yourself, why should I buy stock within a Roth IRA? Well, a Roth IRA is the ultimate retirement tool that allows you to invest in stocks, bonds and mutual funds, while letting them grow and compound dividend payment after glorious dividend payment. Then after you turn 59 1/2 years of age you are allowed to withdraw the entire sum of your investments including gains, tax-free!

Treat your portfolio as if you are running your own business. Would you hire an employee who sleeps on the job? Would you use your profits to invest in an unknown start up company with the hopes of getting rich quick? I strongly advise you to monitor any company that you buy stock from on a weekly basis. Invest in companies that pay you to hold their stock in the form of a monthly or quarterly dividend, then if the stock price goes down their dividend yield will increase. Also, invest in companies which have been around for decades, have a moat of cash on hand, and have a dividend yield higher than 2%, if not 3%. There are plenty of great companies out there which pay a reliable and secure 4%, 5%, 6% and even 7% dividend yield. That's guaranteed free cash!

Constantly reassess what your stock portfolio goals are and also how much risk you are wiling to take. If you make solid, well thought-out purchases then you can sleep better at night. Do your homework! Research how long each company has paid a dividend, listen to their quarterly conference calls so you can hear how well or bad the company is performing directly from the CEO's lips. Take notes and then hold them accountable if they do not meet analysts, but more importantly, your shareholder expectations. Keep excellent records so you can go back and pinpoint where the company may have gone wrong, or made erroneous decisions.

My final comment pertaining to a Roth IRA stock portfolio business plan is to only invest money that you can lose. Now of course, you probably won't lose your money if you make smart investing decisions, but it is so important to not use money that you should be using to pay your bills (for example, college loans, utilities, car note, mortgage, grocery, clothing money, etc.). Don't cut yourself short each month just because you want a few more shares of your favorite winning stock. The stock market is a risky place, but historically has provided some of the best return on investments the world has ever seen.

Please feel free to comment below and share your story of what makes a great stock portfolio business plan. Share your tips with the world so we can all profit. Have a great Friday and continue to reinvest your dividends! Thank you for your time and support.

TOTAL S.A. - TOT

TOTAL SA, stock ticker TOT, is a France based international oil and gas company. TOT operates in more than 130 countries and engage in all aspects of the petroleum industry, including upstream operations [oil and gas exploration, development and production, liquefied natural gas] and downstream operations [refining, marketing and the trading and shipping of crude oil and petroleum products]. TOT produce base chemicals (i.e. fertilizers) and specialty chemicals for the industrial and consumer markets.

TOTAL has interests in the coal mining and power generation sectors. It is also active in solar-photovoltaic power. Their worldwide operations are conducted through four business segments: Upstream, Downstream, Corporate and Chemicals and operate various subsidiaries: Elf Aquitaine, Total Venezuela, Total E&P Nigeria SAS, and Total E&P USA, Inc. and many more.

I love TOT because of their solid $0.74 per share, current dividend yield of 5.76%, and their massive moat of cash on hand. In year's past TOT typically paid their shareholders a $1.38 to $1.61 dividend every 6 months. They have been issuing quarterly dividends since May 18th, 2011. TOT once sold for $89.37 on May 23rd, 2008 and is currently selling at $51.51 per share, so picking up some shares at this level would be a fantastic move for your Roth IRA stock portfolio. There is plenty of room to grow here and you must get in in order to reap the benefits of incremental stock increases. Keep in mind that shares of TOT have fallen recently due to resurging fears of the Euro-debt crisis, however this company is a proven winner and will brush off any short term bad news.

The reaction to Euro problems combined with down cycle on oil and gas make TOT a very compelling stock. TOT has great cash flow and should continue with their great dividend yield. In my opinion, they are best in class and while you are waiting for stock growth you are rewarded with a great dividend! Looking at the major oil companies TOT looks like a bargain basement deal. They are a worldwide mega company which will give you many years of gains and dividends a.k.a. FREE CASH!

Continue to spend your money wisely and certainly perform your due diligence. We all work so hard for our money and it's important to make smart decisions when investing for your future. Make each dollar count! Feel free to visit TOTAL SA's web page, here, and their Investor Relations page, here. Also, I have posted a few TOTAL videos from YouTube below for your viewing pleasure. Until next time, reinvest those dividends within a ROTH IRA and have a great day!

Universal Corporation - UVV

Universal Corporation, stock ticker UVV, is where it's at. A current 4.23% dividend yield, $0.49 cents per quarter and a market cap of 1.08 billion dollars is enough to get excited about. Your Roth IRA needs a company like this one. Most recently, UVV announced that the Board of Directors approved a program for the repurchase of up to $100 million of Universal Corporation common stock. They currently have 23.2 million common shares outstanding. UVV's board also increased the regular quarterly dividend on the common shares of UVV by one cent to $0.49 per share. Hey, a penny saved is a penny earned. Each dividend increase is something to be happy about. The current dividend increase is payable February 13, 2012, to common shareholders of record at the close of business on January 9, 2012.

Before we get ahead of ourselves, let's discuss more about the company. UVV is a global leaf tobacco merchant and processor. Universal’s primary subsidiary is Universal Leaf Tobacco Company. The company involves buying, processing, packing, storing, shipping, and financing leaf tobacco for sale to, or for the account of, manufacturers of consumer tobacco products throughout the world. UVV operates in North America, South America, Africa, Europe, Asia, Dark Air-Cured, Oriental, and Special Services. They are primarily involved in flue-cured and burley leaf tobacco operations for supply to cigarette manufacturers. Also, dark air-cured tobacco principally to manufacturers of cigars, pipe tobacco, and smokeless tobacco products, and Oriental supplies oriental tobacco to cigarette manufacturers. If you would like to learn more about UVV's history then click here. They have been around since World War I and have had many, many years of profits.

UVV is an inexpensive quality business that is consistently profitable in an industry that will stick around well beyond your working career and retirement years. That is pretty much all there is to a long equity investment.

If you invest in UVV expect solid dividends in this tobacco stock which has no tobacco litigation risk! You may ask, why is that? Well, because UVV sells leaf to manufacturers and does not sell to the consumer market. The company is internationally diversified and provides a broad base of services to tobacco farmers.
UVV is one of those long running, what I like to call, boring stocks. Much like those rotisserie ovens, all you have to do is purchase this stock, then Set it and Forget it! Let it grow in your Roth IRA for years.

UVV has increased their dividend payout for 40 years, which makes this company a dividend aristocrat! It is low priced based on earnings and book value. Not bad for a boring stock! This company has low leverage and great fundamentals - both when comparing the share price with the income statement and balance sheet. UVV generates plenty of cash from operations to sustain this great dividend.

If you feel bad or uncomfortable when investing in tobacco companies then please feel free to disregard this analysis and do what's right for you, but remember it's all about creating a safe nest egg for your retirement years. When investing in UVV or even MO, consider this! Many people will choose to smoke regardless of any warning labels that the FDA may regular and much of UVV's income comes from outside the United States.

Enjoy the video below and thanks for your time and support. Have a great remainder of the weekend and a profitable week! Reinvest those dividend and continue to invest as much as you can now for unlimited gains and wealth for your retirement years.

Stock Picks for the week of 1/9/12 to 1/13/12

I hope the new year has been profitable for you so far! Welcome back to Dividend Stock Investing for the Common Man. Listed below are the newest dividend paying stock selections for the Common Man's portfolio for the week of January 9th, 2012 to January 13th, 2012. Any one of these stocks will safeguard your Roth IRA stock portfolio with solid dividends, or what I like to call it free cash! I am bullish long term on each of these companies and I believe in their financials. I'll check back in next Friday to determine how well or poor these picks performed.

Continue to invest as much as you can each week to ensure that you have a solid dividend income stream of wealth! I must remind you that I am only a fan of these stocks and am not pumping them for my own personal gain. I just enjoy sharing which stocks I believe are dividend aristocrats and should be seriously considered when investing your hard earned dollars. Feel free to check out the videos below, which include BP, CSC and MRK. Have a great weekend!


BP plc (ADR)  (Public, NYSE:BP)
TOTAL S.A. (ADR)  (Public, NYSE:TOT)
Intel Corporation  (Public, NASDAQ:INTC)
Merck & Co., Inc.  (Public, NYSE:MRK)
Starbucks Corporation  (Public, NASDAQ:SBUX)
ConAgra Foods, Inc.  (Public, NYSE:CAG)
Royal Bank of Canada (USA)  (Public, NYSE:RY)
Waste Management, Inc.  (Public, NYSE:WM)
Bristol Myers Squibb Co.  (Public, NYSE:BMY)
Realty Income Corp  (Public, NYSE:O)
Enerplus Corp (USA)  (Public, NYSE:ERF)
Universal Corporation  (Public, NYSE:UVV)
Computer Sciences Corporation  (Public, NYSE:CSC)
Unilever plc (ADR)  (Public, NYSE:UL)
General Mills, Inc.  (Public, NYSE:GIS)
Sanofi SA (ADR)  (Public, NYSE:SNY)
JPMorgan Chase & Co.  (Public, NYSE:JPM)
BB&T Corporation  (Public, NYSE:BBT)


Note: Stock prices as of 1/6/12