The article discusses the author’s decision to build up a cash stockpile when the market rebounded in 2023, based on the anticipation of a potential market pullback. The author sold some losing positions and stockpiled cash, which now accounts for over 5% of their portfolio. The author plans to invest this cash in stocks such as Chevron, Kenvue, and VICI Properties due to their attractive potential for long-term growth and dividend income.
Chevron is seen as an attractive investment due to its current low stock price, which offers a high dividend yield (4.2%) and potential for significant growth at lower oil prices. The company has been implementing measures to improve its investment returns, positioning it for healthy cash flow growth. Kenvue, a newly independent public company, has shown strong sales, profitability, and cash flow, foreseeing a future of increasing dividends and share repurchases. VICI Properties, despite a decline in stock price, is experiencing rapid revenue growth and strategic property acquisitions, which are expected to contribute to strong future total returns.
The three stocks highlighted in the article—Chevron, Kenvue, and VICI Properties—have underperformed in the recent past but show promise for generating growing dividend income and strong total returns in the long term. With their earnings potential and likelihood of stock price recovery, they are regarded as attractive options for deploying the author’s cash stockpile.