Personal Finance: Ask the Experts

Get advice on money matters from The Bee's Claudia Buck and a panel of local experts

January 29, 2013
Can I make any money on these stocks?

Q: I wondered what your opinion was for stocks like Coke, Abbott Labs and PG&E?
Thanks,
Darwyn, Davis CA

A: Coca Cola Co. is a great name and maintains superb market share. However, it has been on the slide since reaching an annual high of $40.67 on 8/03/2012. With a dividend yield of 2.7 percent and a staple like business, I wouldn't mind initiating new positions during market dips. Conversely, if you maintain a large concentration, it may be a good time to reduce your exposure incrementally. The price on 01/29/2013 was $37.42

Abbot Labs returned 18.9 percent to investors during 2012, excluding an average dividend yield of 1.7 percent per year. They reported their Q4 and full-year earnings results on January 23 with ongoing earnings per share of $5.07 for the year. They also issued a strong earnings outlook for 2013. Abbott launched numerous new products across its diversified businesses in 2012, positioning the company well for future growth. Key pipeline innovations include the launch of its Absorbâ„¢ bioresorbable vascular scaffold; as well as several new product and geographic expansion initiatives in established pharmaceuticals, diabetes care and vision care. This is a great company but be wary as their business can be volatile. The price of ABT as of 1:00 PM PST on 01/29/2013 was $33.33

PG&E currently has a dividend yield of 4.3 percent. There are cyclical times when owning utility stocks makes sense. In my opinion, although they may provide portfolio stability, there are more efficient ways to reduce risk and attain yield.
PG&E has had its fair share of volatility over the last few years, while most utility stocks like Duke Energy Corp. have shown significant recovery. Of utilities, PG&E is not one of my favorites. The price of PCG on 01/29/2013 was $42.12 The price of DUK was $67.98

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Meet Our Financial Experts

Claudia Buck

Claudia Buck is The Sacramento Bee's personal finance columnist. Read all her columns here. Contact her at cbuck@sacbee.com

Terri Carpenter

Terri Carpenter offers advice on job hunting, retraining and career counseling. Carpenter works at Sacramento Works Inc., the career and job training arm of the Sacramento Employment and Training Agency (SETA). With 15 years in the field, she has hands-on experience with everyone from first-time job seekers to career professionals seeking advice after a layoff or looking for a mid-career change. Ask her a question.

Carlena Tapella

Carlena Tapella is a partner in the law firm of Webb & Tapella Law Corp. in Sacramento. The firm specializes in estate planning and probate, such as estates, trusts, conservatorships and litigation. She is a past president of the Sacramento County Bar Association's Estate Planning & Probate Section. Ask her a question.

Kimberly Foss

Kimberly Foss, certified financial planner, is the founder of Empyrion Wealth Management in Roseville. With nearly 30 years in the financial industry, her clients include women in transition, small business owners, retirees and "pre-retirees." Ask her a question.

Jesse Weller

Gregory Burke, a CPA and tax expert with John Waddell & Co. in Sacramento since 1984, worked as an IRS tax auditor for six years. He’s a past chairman of the California Society of CPAs. Ask him a question.

Daniel Tahara

Daniel Tahara takes your questions about California taxes. Tahara, a spokesman for the state Franchise Tax Board, has 10 years of experience as a tax auditor. Ask him a question.



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