Lanny’s March Stock Watch List

Well, the market hasn’t laid on too many opportunities for us, but we still have stocks on our watch list.  Nothing too crazy has happened, so this was very tough and easy at the same.  Slow and study or keep it simple stupid or uhm… you get the drill.  This isn’t anything wild but here is the March of 2016 stock watch list!

Watch List

The Criteria for stocks on my Watch list

As I have posted earlier this month – I haven’t purchased an individual stock in well over 30 days.  The stock market over the last month is up over 6% and it sucks!  As I stated within that post – it’s also good timing, as I have quite the expenditure list coming up – not as big as others, but substantial for me.  Outside of my normal reinvestment of dividends, as the power of dividend reinvestment is real; followed with my semi monthly contributions to my 401K (as the match can have a substantial impact to your portfolio).  Regardless, we are all in a watch moment right here, for the most part, and the best thing we can do is find the one or two undervalued stock.  If they aren’t at the right value that you want – then don’t buy it if you don’t like the price.  However, there should be a good balance to your investing approach.  The back and forth game is unreal to me.  I want them to pass my dividend stock screener, as I stated last month in a similar article.

The Stocks

1.) Pfizer (PFE) – Still here on this list from last month.  They’ve stayed fairly steady and are trading on 3/29 close at $30.06 with still yielding around 4%.  No real changes here, except the price is up a little higher.  Unlike Johnson & Johnson (JNJ) (though a glorious foundation stock for a dividend investor) the PFE yield at 4% with a solid 7%+ dividend growth rate currently trumps theirs, which JNJ is over 17 P/E ratio now with a lower than usual 2.75% yield.  Ouch.  Not going to buy PFE any time soon, as I’d like to see them in the $28-$29 range; $1 makes a huge difference!  Trust me.

2.) Archer Daniels Midland (ADM) – One would have thought, after making a $3,000 plus investment (one of my new favorite strategies and goals) into ADM towards the earlier part of the year/back in January, that I would not want to own anymore, since I have contributed a total of $4,725 over my purchases into this company.  However, one could almost say – does this dividend aristocrat fit the bill on one of Bert’s 5 always buy stocks he always totes around?  Not sure on the exact answer but they show everyone reason why they should be with a beautiful below 40% payout ratio, strong 7%+ dividend growth rate and below a currently calculated 12 P/E ratio – all signs point to – yep this can be undervalued and should be on watch by investors.  Which is why, for those exact reasons, it is on my watch list. 

Stock Watch List Summary

 

And that is all for the watch list.  That’s it. Two stocks.  No others look undervalued even remotely to me at the moment.  Aflac (AFL) still shows signs of a low P/E and a low payout ratio, but even that price has gone up pretty well since my last article.  It’s frustrating!  I may have cash to deploy once more dust settles towards the very end of April; as I’ll have the other items more than budgeted for come May – the bachelor party, the vacation, and the two weddings.  Should be then very focused on the cash reserve front and more of an exact amount of where I’ll be at, as opposed to having more variables than I’d like.  I’m happy the market has been like this in hindsight as my mind would have burst if there were a plethora of opportunities out there to be picked at.  That would have turned my hair grey for sure, no doubt.

To make it short and sweet: Two stocks I have my eyes on and two stocks that I currently own.  Both have solid business strategies, payout ratios, dividend growth rates, dividend yields and price to earnings ratios.  Neither of the two are screaming BUY ME BUY ME, but are worth to keep an eye on.  This is why they call it a watch list and not a “Holy Crap – NEED TO BUY NOW” list haha.

What do you have on your watch list?  I have seen bloggers write about new companies that I never have even heard of.  Do you have some of those?  Do you have the two I’ve listed above on your watch list?  Do you hate/not like the stocks I have?  Reasons to not purchase or to purchase them?  Always curious!  Thanks again everyone for coming by, sharing your deep thoughts, as well as what you are seeing as March comes to a close.  Good luck and stay grinding!

-Lanny

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15 thoughts on “Lanny’s March Stock Watch List

  1. Good list Lanny. I’m not seeing a lot of value in the market right now, but I am still kicking myself for not buying ADM at $30 last month. Good job catching that opportunity!
    -Bryan

  2. Nice short list. There’s not much opportunity out there aside from Canadian Banks and the two stocks you mentioned. I haven’t added PFE yet, but I did by ADM in December. Thanks for sharing.

    • ih,

      Thanks for coming by! I am seeing more ADM now with the recent few days in a red position; if I see it below $35 – I may contribute more to it – solid yield, very low P/E and payout – enticing. But with you – not many opps out there… keep the eye keen!

      -Lanny

  3. I value AFL at $50 with the Dividend Discount Model, I don’t think there is value there. The low PE ratio is there for a reason. The next stock on my radar is CALM as you noticed 😉
    UNP hasn’t come back yet either. I bought it not so long ago.
    Cheers,
    Mike

  4. I haven’t been paying that close of attention to values since I know we won’t be investing for at least the next 6 months possibly longer due to other needs for our cash. PFE and ADM both look pretty good here though. After the big rally the second half of February and through March there’s really nothing that has me itching to scramble up some cash. TROW looks good too among the companies already in my portfolio. Thanks for the update!

  5. Two stocks or ten stocks. At least you have a strong thesis going into April and most of the guesswork has been eliminated by choosing your picks ahead of time. Now you just have to pull the trigger. I also added to my ADM a earlier this year and still like it long term but may have to look elsewhere for April as I seek to average down on other names in my portfolio… namely the Canadian banks but they too have come up a lot since their Feb. lows. Thanks for sharing.

    • DH,

      You are right. Homework is done. I have a very limited scope of who I am looking at. These 2 companies have still multiple weeks until ex-date and one is at a better P/E than the other. Canadian banks have def. come back though – so I hear you on that. LETS GO DH!!! Good luck.

      -Lanny

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