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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 the last couple of months, 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. With that being said, let’s take a look at some of my December stock picks.
First up, I am looking at Verizon Communications Inc. (VZ) once again. I nibbled here a bit in November and December prices are still looking attractive. 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.
Finally, I’m taking a look at a stock that I have not bought in a long time, Broadcom Inc. (AVGO). With a forward PE just under 13 and a decent current yield just north of 3% and a moderate payout ratio around 69% this dividend is considered safe with plenty of room for future growth. At current prices the stock seems to be fairly valued.
What do you think about my stock considerations for December? Another short list like last month. Ending 2022 my buys have been much smaller as I’m saving up cash for future months deployment. What are you considering for the month? Please let me know below.
Disclosure: Long VZ, AVGO
Originally Posted on divhut.com