VDC, VCR, and Gambling on Procter & Gamble

Not THAT VCR.

Today we are looking at the single stocks that make up the biggest holdings in VDC and VCR. With VDC, number one is Procter & Gamble, followed by Philip Morris, Coke, Pepsi, and Wal-Mart. VCR has Disney, Amazon, Home Depot, and Comcast at the tip. On principal a few of these just don't seem like something we are interested in.

We like Procter & Gamble and CVS for VDC and Amazon and Home Depot for VCR.

Let's look at Proctor & Gamble

CVS is currently about 50% above their low for the last year.

Amazon is just too expensive per share, which doesn't fit our buying amounts (we'd only be able to buy 1-2 shares). Additionally, it is has almost doubled in price since May of 2012, which doesn't make growth potential seem likely.

When we're comparing Proctor & Gamble to VDC, we should look not only how they are performing relative to one another, but also at how their respective dividends are paying out.

PG is about 8-9% underperforming.  The yield for PG is 3.1% and VDC is paying out 2.24%.

PG has some qualities that we value in our risk-averse investing strategy. It has a low beta and a decent yield. It might be time to do a little reading on it to get a sense of where it might be headed as a company.

Next we look at Home Depot and CVS.

Profit!