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Choices for Roth PreII  07-05-2008, 4:31 PM | Post #2535824  | 
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If given a choice of where to add new money to a Roth IRA...and one in which retirement is more than 20 years away...in which security would you invest in as a buy and hold strategy?

Allied Capital Corp (ALD)...M* fair value is $28 and current price = $13...dividend is at 20%...a financial stock.

Diageo (DEO)...M* fair value is $112 and price is $70...dividend = 3.74% and is a maker of alcoholic beverage (immune to the economy)?

Cross Tex Energy (XTXI)...M* fair value = $34 while current price = $33...Dividend = 3.29...has a leverged dividend because it is a general partner of an MLP....pipeline

Kinder Morgan...(KMR)...M* fair value = $70 while current price = $54...Dividend = 6.75%...is an MLP...pipeline...(already have a large percentage of the portfolio in Kinder Morgan).

 Novartis...(NVS)..fair value = $73 while current price = $56...Dividend = 2.7%...great chance for growth and immune to the economy.

Reality Income (O)...Fair value = $27 while current price = $23...Dividend = 7.18%...monthly dividend...somewhat dependent on economy and high inflation is bad for this stock...

 DODWX...The new Dodge and Cox Global Fund....I would think this would be a good long term choice for the next 20 years.  Already have Dodge and Cox International (have both funds already...but, more in international).

 

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