With a new trading month already in full swing it is time, once again, to highlight some of my potential stock purchases. While the market had a nice bounce last month there is still no shortage of stocks that are becoming fairly valued to undervalued. The reality of the day is that we’ll continue to see stock prices continue to come down as interest rates rise. No reason to believe interest rates will stop climbing anytime soon. Of course, the silver lining amid the market collapse is that every new dollar put to work today in dividend stocks comes with an automatic higher yield when compared to just a few months ago.
Last month I had outlined five potential stock picks of which I picked up all five. This month I am only considering two stocks with one possible “honorable mention.” With that being said, let’s take a look at my November 2022 stock considerations.
First up, I am looking at Verizon Communications Inc. (VZ) once again. This stock is trading with a low forward PE of just over 7 and sports a very juicy yield getting close to 7% and a moderate payout ratio of around 56% 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.
Next, I’m taking another look at Starbucks Corporation (SBUX). This stock continues to be a loser in 2022, though had a nice bounce recently. For those willing to hold on for many years I think SBUX can be a good long term winner both in price appreciation and dividend growth. Shares are looking fairly valued with a PE of around 24 and a yield around 2.4% with a payout ratio just at 54%. Though the share price has been hammered this year the dividend still appears to be safe. Could be a good month to pick some up.
Finally, my honorable mention stock is Microsoft Corporation (MSFT). A big tech bellwether that has been hammered down so far in 2022 is looking fairly valued at current levels. With a forward PE close to 24 and a low current yield just north of 1% and a low payout ratio around 27% this dividend is considered very safe with plenty of room for future growth. Sure, the low current yield is not attractive but you own MSFT more so for its growing dividend.
What do you think about my stock considerations for November? A much smaller list when compared to last month but nonetheless a list of potential buys. As you know, I make purchases every month and simply dollar cost average into my portfolio. What are you looking to buy in November?
Disclosure: Long VZ, SBUX, MSFT
Originally Posted on divhut.com
With a new trading month already in full swing it is time, once again, to highlight some of my potential stock purchases. While the market had a nice bounce last month there is still no shortage of stocks that are becoming fairly valued to undervalued. The reality of the day is that we’ll continue to see stock prices continue to come down as interest rates rise. No reason to believe interest rates will stop climbing anytime soon. Of course, the silver lining amid the market collapse is that every new dollar put to work today in dividend stocks comes with an automatic higher yield when compared to just a few months ago.
Last month I had outlined five potential stock picks of which I picked up all five. This month I am only considering two stocks with one possible “honorable mention.” With that being said, let’s take a look at my November 2022 stock considerations.
First up, I am looking at Verizon Communications Inc. (VZ) once again. This stock is trading with a low forward PE of just over 7 and sports a very juicy yield getting close to 7% and a moderate payout ratio of around 56% 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.
Next, I’m taking another look at Starbucks Corporation (SBUX). This stock continues to be a loser in 2022, though had a nice bounce recently. For those willing to hold on for many years I think SBUX can be a good long term winner both in price appreciation and dividend growth. Shares are looking fairly valued with a PE of around 24 and a yield around 2.4% with a payout ratio just at 54%. Though the share price has been hammered this year the dividend still appears to be safe. Could be a good month to pick some up.
Finally, my honorable mention stock is Microsoft Corporation (MSFT). A big tech bellwether that has been hammered down so far in 2022 is looking fairly valued at current levels. With a forward PE close to 24 and a low current yield just north of 1% and a low payout ratio around 27% this dividend is considered very safe with plenty of room for future growth. Sure, the low current yield is not attractive but you own MSFT more so for its growing dividend.
What do you think about my stock considerations for November? A much smaller list when compared to last month but nonetheless a list of potential buys. As you know, I make purchases every month and simply dollar cost average into my portfolio. What are you looking to buy in November?
Disclosure: Long VZ, SBUX, MSFT
Originally Posted on divhut.com