Jun 4th, 2009
What’s in My Portfolio: DuPont
Here’s yet another stock in my portfolio: DuPont.
Interestingly, DuPont’s Web site says “The miracle of science” right on it, even though it’s not really considered a technology company the way Apple or Google are. DuPont’s really known as a chemical company. Ever hear of Teflon, Mylar, Kevlar, Lycra, and Tyvek? Those are all DuPont innovations.
DuPont is a Dow component, so you know it is recognized as one of the best companies in the United States (of course, GM is also in the Dow at this point, so maybe that doesn’t say a whole lot). With a price to earnings ratio of under 20 and a dividend yield of 5.80%, this stock is not just profitable but dividend paying–exactly the kind of stock I like.
If you compare DuPont’s performance to the S&P 500, you will find that this year, their performance curves look very similar, but the stock is up over 10% year to date vs. the barely above breakeven S&P. The S&P has beat it over one, two, and five years, however. I’m not convinced this is a keeper–I owned it before and sold it a little over a year later, taking some profits in the meantime. I’m thinking I’ll do the same this time. Since I own this stock in my Roth IRA, I am not concerned about tax implications at this time; it makes up less than 1% of my total portfolio.
DuPont is a stock worth considering if you like big companies that pay dividends. We’ll keep looking at different stocks and funds I own over the next few weeks.
