Lanny’s June Dividend Stock Watch List

Back in business baby!  Cavs game 5 is tonight and I’m hyped up to write my dividend stock watch list for June.  Hungry to purchase some stock and add to my forward income.  As we all know – increasing that, helps us get to financial freedom, undoubtedly.  The summer heat is coming on and it’s time to spark a fire for my dividend pumping portfolio.  Now onto the stocks!

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The watch list stocks

What’s the goal here?  To Just Go For It – dividend investing style, of course.  I had a conversation with Bert Today, and it was about trying to do whatever we can to get closer to our goals and financial freedom, because DAMN is it hard.  Therefore, I am going to purchase a stock and trying to figure out which one to grab here.  One of the companies is in my portfolio, but the other two are not.  Let’s take a look at the stocks (which are heavily vetted by our Dividend Diplomat Stock Screener) that are on my watch list!

#1.) Cisco (CSCO) – Yes, yes – this stock is HOT on my watch list, especially after I performed a dividend stock analysis on them.   They were trading at $34.23 when I first did an analysis on them and as of the close of business on 6/9 – they are trading at $31.37 or an 8.35% decline from a few months ago.  I love this and this represents a yield, now, of 3.70%, which is greater than the S&P 500 and is greater than my portfolio current yield, definitely a win there.  They are BIG in the cloud computing, security and technology space and I believe they are on the fore front cutting edge of staying in front of technology change and/or have the means to do so.  Their P/E on a $2.50 expectation, equates out to 12.55 – far below the S&P 500, I dig it, I dig it.  Further, this year – they had announced an over 11% dividend increase.  Bodda bing, bodda boom baby!  This represents the first spot on my list.

#2.) General Mills (GIS) – Yep, they are down this year – by 7.6% and currently yield 3.36%, a place they haven’t been at, in quite some time.  I love their brands and portfolio – from their cereals, to baking items (pillsbury, betty crocker), yogurt, snacks, etc.   Their P/E, however, is slightly over 20, but this is big on my watch list as well, just by their sheer products, history of dividend growth (13+ years) and strong customer/brand loyalty causes this to be a great stock to own.  Also – I love cheerios, so I may be biased here, haha.  However, with the growth history, the solid yield, the payout ratio at approximately 63% (leaving some room for div growth) – makes them on my watch list.   Who doesn’t love a great well-known customer staple?

#3.) AT&T (T) – Shocked?  I am.  As I am typing this I am shocked that I still want to own more of this BIG telecom!  They are yielding over 5%, again, and with Verizon (VZ) experiencing headwinds with shrinkage in customer base and loyalty, AT&T seems to have been brought down with them.  32+ years of dividend increases, yes this is an aristocrat, causes them to be on my list, albeit the small growth.  They are down almost 9% this year and seem to be a “dog of the DOW” at the moment.  Further, the last time I purchased them was at $34.46 per share back in October of 2014 – only $4 of share appreciation in almost 3 year’s doesn’t cause for overvaluation, with 3 years of dividend growth in that time frame, as well and the addition of DirectTV.  Time to scoop up some more?  Potentially!

The Watch List Summary & Conclusion

What do ya’ll think of the watch list stocks above?  I am sure many of you own these companies, as A Frugal Family posted about the numerous purchase orders for AT&T (T) & General Mills (GIS) at 6 a piece from their round up – means that I’m not by myself in eyeing those companies down!  I need to remember to make every dollar count in this situation and press forward in the right way to reach my goals I have set for myself, especially with the June 30th/mid-year report closing in on myself and others!

Are these companies on any of your stock watch lists?  Are you planning on purchasing them or staying away from the market and think these companies & others are overvalued?  Don’t like Cisco (CSCO) & the technology space?  Holding out on the sidelines to build up ammo?  Would love to hear your feedback!  As always – thanks for your comments and thoughts, one dollar, hour and day at a time in this pursuit and make it all count!  Good luck and happy investing.

-Lanny

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36 thoughts on “Lanny’s June Dividend Stock Watch List

  1. I like all of these choices. Clearly, since I already own them all in my portfolio. But I would never be opposed to expanding my position further. If I had to choose from one of those currently I would go GIS personally to lower my overall cost basis. But can’t go wrong with any choice really.

    • Daze –

      Little bias over there? I kid, I kid. Appreciate the post, as always. I love expanding and building current positions if you can, every time – that’s where AT&T is coming into play. Making a move, then, on GIS? Love cheerios, haha, and yoplait Greek isn’t too bad, as well as the plethora of other brands they have under the helm (Larabar, for instance)!

      -Lanny

    • TitM –

      The acquisition of TW, should be quite the bang to their top line revenue – especially with the new Spectrum service that ha sbeen catching like wild-fire. What’s interesting – they are really expanding their geographical footprint to have synergies on the cost side, but bump up that top side. Monopoly starting??? That’s always on my mind : )

      -Lanny

  2. Cisco can be a good purchase. Especially if the tax environment in the US changes and they can take home some of the cash from abroad under a favourable condition.
    Regarding AT&T, I also have some shares and I love the dividend yield, I just find it too expensive now to add more. I think the interest rate hikes wouldn’t help the share price.
    Besides of the companies that I posted on my May watchlist, I’m looking close at KMI these days. Could be a good long term purchase around $18-19…

    • RR –

      Love the comment and just may be pulling the trigger on the Cisco.

      It’s a very interesting environment with telecom here in the states. What are your thoughts on telecom in Canada?

      KMI, it did catch my eye at these prices and knowing their journey they are undergoing with the way they are financing the business. Interesting.

      -Lanny

      • I have no particular overview on Canada, but generally the environment for Cisco and its industry peers will be challenging in the next 1-2 years. Then I’d say the 5g rollout will give an extra boost.
        The biggest story in Cisco now is the cash repatriation due to possible tax legislation change in my view, which can be partially used for dividends and share repurchase. Meanwhile they have a stable dividend, but these could really send the share price to the north…

  3. I’ve owned GIS for a while now, and price-wise it has done crappily for me since I’ve bought it…. but I am holding on to it. The dividend is great, and I’m really stoked about their purchase of Annie’s Naturals back in 2014. It gives me hope that they are keeping up with changing consumer tastes, despite what a lot of online analysts say. I don’t know if the Yoplait brand can be saved (GIS has lost the yogurt war, I’m afraid), but I agree: you’re never too old for Cheerios.

    On another note… I keep seeing people walking around NYC with Golden State jerseys… what gives?! GO CAVS!!!

    • Meow –

      Thanks for the post back over there! The dividend looks awesome and Annie’s is everywhere, you are right! Looking forward to Cheerios, almost everyday; but they have more yogurt, surprisingly than Yoplait – Liberte, I think?

      MAN…. GOLDEN STATE JERSEYS IN NY??!!? The HECK are they thinking – LOVE the support, 52 minutes and the game is ON, LETS GO CAVS!!!

      -Lanny

    • CD –

      Thanks for the stop by. Love O, and damn want that stock price to drop! I think I have a little more room for T, but do like Cisco more than the others, no doubt. Appreciate the comment and stop by, as always.

      -Lanny

  4. Sounds like a good list. We have to dive into some companies again as we are making plans to start buying stocks again in the coming months.
    I’ve never been a real fan of the Telecom sector, more over because their future growth is not that promising and the big players are often undermined by smaller ones. Than again, it might be the perfect time buying when it seems their not doing so great. You know what they say….

    • Divnomics –

      Yep – always nice when you can take time to analyze a few stocks and deploy capital. Telecom is interesting and highly dominated by AT&T and their endless pursuit to shrink the market. Internet, for what I can see, will always be needed : )

      -Lanny

  5. I wanted to try the stock market when I was younger and used to see the eTrade.com commercials but never had the money to do it. And now I just lost interest altogether in it. I know there’s tons of $ gUaP $ to be made in it. How long have you been investing for?

  6. Hi lanny, interesting choice on both CSCO & T. You may be one of many looking to gain from the pull backs and rightfully so. I find GIS to be quite expensive for a company with such moderate (at best) growth prospects.. definitely T or CSCO if you ask me:)

  7. NEP has been on my watch list for a while and EMN just made my watch list a few days ago. I have been a bit cautious recently and haven’t added to my portfolio in months due to 1. Target’s down-swing and 2. I’m saving up for a ring for my girlfriend. Maybe I’ll pull the trigger in a month or two and make some further additions to my stock list, but for now I am holding back.

    • Alex –

      Respect saving the cash for the ring – no doubt and know what that’s like! Keep the watch list strong and find some new creative ways to save or earn some cash, you got this!!

      -Lanny

  8. Nice list. I own both GIS and CSCO. Will add more CSCO soon, mainly because of the insane dividend growth. Looking at Qualcomm since I sold all of my ATVI stocks with a 60 % gain, and need some tech in the portfolio.

    • MDS –

      Really appreciate your comment and input on CSCO, given your background. I made a purchase on Tuesday of a company above – so I’ll have to let the excitement build for everyone haha. Do you believe CSCO will always be on the forefront of the network & cyber security?

      -Lanny

      • I really do think so. They have IMO the best networking gear for business and I really like their AMP product for malware. We’ve been deploying that on all of our business computers. Things change fast in tech but I can’t imagine Cisco not being a major player in the future.

  9. This is a good list. I need to add about 5 more stocks to my portfolio and GIS is one of my considerations. I already have AT&T although I’m also contemplating adding Verizon.

    Thanks for the list and the associated analysis.

    • DP –

      Thanks for checking it out. I picked up Cisco from this listing and am pretty excited about them being able to handle change & transformation in the tech space. Love GIS and keep your eyes on them – not too bad of a price right now!

      -Lanny

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