Introduction: Accumulating Undervalued, High-Dividend U.S. Stocks
Hello, this is GOOD MONEY STOCK by Value Stock Speculator, where I document my journey of accumulating high-yield, undervalued U.S. stocks based on solid fundamental performance.
Currently, I select and systematically accumulate five undervalued, high-dividend U.S. stocks whenever my financial situation allows. My current portfolio consists of Pfizer (PFE), United Parcel Service (UPS), Kraft Heinz (KHC), Verizon Communications (VZ), and Conagra Brands (CAG).
While all of these companies are currently grappling with challenging macroeconomic and industry-specific headwinds, I maintain a highly positive mid-to-long-term outlook on them. My conviction is anchored in their historically low stock price levels, rich dividend yields, sustained profitability (remaining in the black rather than slipping into deficits), and low valuations. Guided by this principle, I do not sell; I operate on a “buy-and-accumulate-only” basis.
With UPS showing strong price action in today’s market, I would like to share my personal outlook and investment strategy for United Parcel Service (UPS).
Skin in the Game: Disclosing My Current UPS Position
As a practical investor and blogger, I deeply value a “Skin in the Game” perspective. I believe in showing, not just telling. Therefore, I transparently disclose my average purchase price and position size. Currently, UPS accounts for approximately 4% of my total portfolio allocation, and my current return stands at +13.56%. While this is not yet a completely satisfying position size, it represents a meaningful allocation. For this reason, I am currently pausing new purchases to conserve cash, choosing instead to observe the market and wait for even better opportunities to buy at lower prices.
Technical Analysis: Analyzing the 120-Day Chart and Bottom Rebound
Below is the 120-day daily candlestick chart for UPS. As you can see, the stock price is clearly rebounding from its recent bottom.
Current Price:$112.5050
Proving the Upward Trend via Previous Peak Breakout
From a technical analysis perspective, the stock broke through its previous local peak today, proving once again that it is establishing an upward trend. Normally, under these technical indicators, I would set an automated buy order at the breakout level to bet a small amount on the continuing upward momentum. However, as mentioned earlier, I am actively conserving cash right now, so I am choosing to remain on the sidelines. (The Korean stock market is currently facing heated debates regarding a potential market peak. Believing it is time to scale up cash reserves, I am refraining from aggressive buying—even in the U.S. markets, as painful as it is to pass up these setups).
Accumulation Strategy: My Target Entry Zones and Resistance Levels
If I were strictly accumulating shares without worrying about my overall cash-to-asset ratio, I would have planned to continue buying up to the next major resistance level indicated below.
Transitioning into a Long-Term Holding Phase
Furthermore, if the stock price continues to surge above this upper resistance zone(122.41$), I plan to stop accumulating shares entirely and transition into a long-term holding phase—unless the market offers another opportunity by pulling back into what I consider my “value zone.”
Dividend Analysis: A Core High-Yield Value Stock
Currently, UPS offers an attractive expected forward dividend yield of 5.92%, making it a quintessential high-dividend stock. Had I not judged the broader market to be nearing a local peak, I would have fully activated my “Buy Mode” for UPS.
However, forcing purchases right now would be an attempt to time or beat the macro market. For now, I will prioritize the safety and preservation of my hard-earned capital and continue to observe. If the market gives us another opportunity to scoop up UPS at a discount when my cash reserves are replenished, I will gladly resume buying shares with joy.
Conclusion: Staying Rooted in the Zone of Value
This has been Value Stock Speculator, a dividend investor who accumulates high-yield stocks in the zone of value for long-term compounding.
I wish you all the best and great success in your investment journey.
Disclaimer: This post is for informational and educational purposes only and does not constitute a buy or sell recommendation. All insights shared are my personal and subjective opinions. Investors bear full responsibility for their own investment decisions.
