Lanny’s September 2017 Dividend Stock Watch List

The stock market has had some fun pullback as of late, and I’m all for it.  There are quite a few things occurring from a macro level with the sudden tragedies of Hurricane Harvey and Irma, followed by other catastrophic storms occurring within the world.  Even outside of those events, Amazon also is continually changing the landscape among retail and we are starting to see those that will thrive and those that are being negatively impacted in the short-term.  Since I always have my ear to the floor to what companies are being impacted, I have decided to compile my quick, short list of dividend stocks that have caught my eye.

This will be a very short summary for the dividend stock ideas that are on my mind, in order to provide names out to the community, receive feedback sooner, as well as to perform a deeper evaluation on the names that have pierced my eye.  I’ll try to keep it interesting, but these are primarily stocks I am considering to add or increase my position within the portfolio.  There have been quite a few names on my mind that aren’t listed below, such as Disney (DIS), Smuckers (SJM) and others, due to ex-dividend dates or yield preference.  However and without further-ado, here is the dividend stock watch list below!

DIvidend STock Watch LIst

AT&T (T): Yes, they are back on the dividend stock watch list.  How could they not be?  Their stock price has plummeted from trading at $38.35 on August 10th, down to $35.59 over the September 8th weekend, a drop of 7.2% in that short, one-month time span.  They have a dividend increase coming up in November (or some time in the 4th quarter), which (more than likely) will be around that 2% growth rate that they have had.  At this current price, with a current dividend of $1.96 per year, their yield is a wonderful 5.51% and is easily two full percentage points higher than my average yield on my portfolio.  At an expected $2.94 earnings per share for 2017, their price to earnings (P/E) ratio is 12.1, very low at this current point in time.  I own quite a few shares, but given that other positions have grown, this position doesn’t stick out as much of a sore thumb anymore and I’d be interested in adding more at these levels.  I know that quite a few people love AT&T as a prime dividend stock in their portfolio, and I agree, hence why I also consider them a top 5 foundation stock.

Delta Airlines (DAL): I purchased DAL back in mid-August at a price point of approximately $50 per share.  However, they now trade at $47.45 or a 5.1% decline since my entry price.  We know I usually have a rule that if I bought it at “X” and if it drops 5%, why wouldn’t I now buy it at “Y” if the fundamentals didn’t change.  I can see the increase in gas/oil having an impact on the cost of DAL, as well as lost revenue from the catastrophes that are occurring within the US, causing the decrease in share price.  I still am a fan of Delta, whole heartedly, and with a current dividend of $1.22, their yield is now at 2.57%, not too bad, given their historical 50% dividend growth rate.  Expected earnings next year is at $5.90 currently (aka, a very low payout ratio to boot, allowing ample room for future increases) and that equates to a P/E ratio of 8.  I’ll fly with the stock at the moment and am looking to purchase a few more “seats” in my portfolio for DAL.

Hormel (HRL): HRL is down 9.2% this year and is considered one of the longest dividend aristocrats out there.  They have a dividend growth streak of over 50 years and this year they increased their dividend a whopping 17%.  Their forward yield is $0.68 per share and at a share price of $31.60, this equates to a yield of 2.15%.  Not a large yield, by any means, but their growth rate more than makes up for it.  Additionally, they have brands such as Jennie-O, Justin’s nut spreads, Wholly Guacamole, Skippy, Muscle Milk and that’s not to mention their chili and pepperoni products.  They are making a big investment and push into the natural foods and organic selection as well.  Analysts expect $1.56 earnings this year, for 2017, which produces a p/e ratio of 20.2.  Slightly higher than I would like and would prefer that to top out at 18, i.e. a $28 share price is preferred.  I’ll keep my eye on them in the near-to-mid term.

So what does everyone think of the dividend stock watch list this month?  Do any of them fit into your portfolio?  Will an add of one of them help you reach your goals and help take back control of your time?  Additionally, feel free to check out Bert’s list of stocks to increase their dividend this month when you have a chance, as you may be able to snag a dividend stock before their announcements.  Lastly, what are your favorite stocks that you are seeing out right now?  Please comment and share your thoughts below!  Thanks again for stopping by everyone, good luck and happy investing!

-Lanny

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30 thoughts on “Lanny’s September 2017 Dividend Stock Watch List

  1. I like seeing T back on the list. Will be interesting to see what happens with the merger. HRL is another good pick that hasn’t quite recovered price wise yet. But their cash flow is enough to continue to pay out dividends for a while. GIS also has a pretty attractive price point right now. Thanks for sharing.

    • Div Daze –

      AT&T always manages to creep up here, and damn, they had a solid increase today! Hormel has stayed under the radar, but hopefully the consumer hungry investors take a look back at them. Would like to see the stock lower to fit the metrics I typically go for. GIS is also within the conversations, no doubt!

      -Lanny

  2. I am quite surprised about the share price drop of AT&T, especially when bond yields were also falling. It can be a good buy at these levels.
    Regarding HRL, do you prefer it over GIS? If I could buy now, I’d personally go for GIS in the sector, so it’d be good to hear another opinion.

  3. From all three stocks, I like Hormel the most. I also have HRL on my watchlist, but I decided to wait a little bit more. But as mentioned GIS could also be another candidate. I’m eager to see which one you’ll add.

    Cheers
    -DivRider

  4. Nice watch list! Yeah basically all airlines are down right now due to the catastrophic weather we’re unfortunately experiencing. I suppose buying more DAL is warranted since this is a short-term set back. AAL has dropped more than DAL anyway, however the former pays a considerably smaller dividend.

    • SMM –

      Yes, the airline stocks have been hit, but have bounced back a little bit already. Market has somehow taken favor the last few business days as of late, some great buys that were out there (and still are, don’t you worry). Really liking the HRL, given the metrics, payout ratio, DGR, etc.. What are your thoughts on them?

      -Lanny

  5. I like especially the consumer staples since their stock prices have come down quite a bit over the last months. Hormel, General Mills, Kellog and KraftHeinz caught my eye, prices are not yet where I’d like them to be, but they definitively look attractive to me.
    Keep adding strong companies making your dividend machine even stronger!
    Cheers

    • Shaper –

      All of those that you have mentioned are awesome, bottomline and bar none. Strong consumer staples, when trading at lower valuations are key. One would think their products are continually being used, right? They do have not as healthy foods, but they also all have a form of organic/healthier snack/food option.

      -Lanny

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