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Grandpa Is Buying Prudential Financial For Its 4.7% Yield, Heavy Discount, And Consistent Free Cash Flow Generation

Published Wed, 09 Oct 2019 08:33:22 -0400 on Seeking Alpha

Last week, I published my LyondellBasell article, in which I briefly mentioned the benefits of diversification. So far our "Grandpa's Retirement Portfolio" has included stocks in the Energy, Real Estate, and Utility sectors, but has yet to touch any Financials. Today Grandpa is about to buy Prudential Financial, the insurance and asset management giant. This is the 7th pick for our portfolio. By the time the portfolio reaches the first ten stocks, I will include detailed graphs, risk-adjusted metrics, and tools. It will help to make sure that our portfolio is in line with our retirement goals. I believe that more data will be of great value to all investors. The data will be useful, especially to those who wish to replicate this portfolio or adjust the holdings of their existing portfolios.
As always, every stock (minus REITs) chosen for GRP must have:
A dividend yield ≥ 4% A payout ratio < 80% A PE ratio < 20 A beta < 1 (in this case a bit higher due to volatility in the sector) Company Description
Prudential (PRU) wants to secure its position near the top of the life insurance summit is set in stone. Prudential is one of the top US life insurers and one of the largest life insurance firms worldwide. The company is best known for its life insurance, though it also sells group life and disability insurance, as well as annuities. Prudential additionally offers investment products and services, like asset management, mutual funds, and retirement services. In Asia,... Read more