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With the start of a new trading month, it is time, once again, for me to highlight some of my potential stock buys for September. With all the recent market volatility there is no shortage of stocks that are looking seemingly cheaper when compared to the closing months of 2021. No one can make the argument that 2022 has been a banner year for the markets in general. This month I have my eye on three potential buys but as we all know Mr. Market can give us fresh buying opportunities at any time and those three potential buys can become four or five. With that being said, let’s take a look at my September stock considerations which are similar to recent considerations from one to four months ago.
First up, I’m thinking about adding to recent spin off Viatris Inc. (VTRS). The relatively new separate consumer division of Pfizer (Upjohn and Mylan merge) is sporting a forward yield of around 5% with a manageable payout ratio of around 73%. This new company controls many popular consumer drug brands still in great demand for the foreseeable future. Under $10 a share the stock looks to be fairly valued with a current PE around 15.
Next, in the same sector, I am looking at GSK plc (GSK). This stock has been hammered in 2022 and is currently trading around its 52 week lows. The stock is offering a very juicy yield north of 7% with a payout ratio just north of 80%. The current PE sits around 12 and there may be other financial risks for this company being based in the United Kingdom. Still, for me the risk/reward for a seemingly safe dividend at such high yield is enough reason to nibble in September.
Finally, I am looking at Verizon Communications Inc. (VZ) once again. This stock is trading with a low PE of about 8 and sports a very juicy yield north of 6% and a moderate payout ratio of around 50% making this dividend appear to be very safe going forward. I realize that this company may not be a growth machine going forward but what it lacks in growth the current yield makes up for.
What do you think about my stock considerations for September? What are you looking to buy this month? Please let me know below.
Disclosure: Long VTRS, GSK, VZ
Originally Posted on divhut.com