You are going to build a portfolio of 5 stocks and write a prospectus of your mini- fund.
Consider the following investor:
• Nicole is 52 years old, and a few months ago, she retired from her well-paying job after aggressively saving and investing her money prudently for much of her life. While she could go back to work if necessary, she prefers her financial independence. In order to maintain a steady cash-flow, her portfolio is heavily geared towards high yielding stocks, allowing her and her family to live of dividend payments for the most part. Aware of the downturn of General Electric and their dividend cut, she focuses on companies from which she expects a solid and steady dividend growth.
create the portfolio of 5 stocks.
Write two paragraphs per stock in your portfolio explaining clearly why this stock is a good choice for your portfolio given the investor profile. Support your answers with both description of the firm and their business model and appropriate financial ratios.
