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!
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.