Always keep an eye on the future
Wednesday, March 29, 2017
I spent the day sitting on the sidelines. I didn’t receive any dividends, didn’t make any purchases and, for the most part, didn’t pay much attention to the market in general.
As I write this post though, with another Platform Beer Company High Brow Barista at my side (almost done with the six pack) and the boys from the Black Keys helping me chill out a bit, I realize days like today are perfect for looking toward the future.
I’m always looking to buy more stocks. Always.
That said, keeping in mind my plan is to create an ever-increasing dividend stream, my focus right now is on companies paying quarterly in May. If you’ve been following my march for any extended amount of time, you know I have 33 quarterly dividend payers scheduled to shell out payments in May. In order to to ensure I make more in dividends than I did when the 33 last paid me in February, I need to add to those positions.
Here are a few potential purchases I’m pondering:
My position in CVS Health Corporation is almost certainly going to double, maybe even triple in the next month. Part of that is due to the fact I currently only own one share, but the other part is because it’s at the top of my must-buy list.
Everyone and their mother says its undervalued, which must mean it is, and the numbers look pretty good, too. The company, which has been boosting its dividend for nine straight years, is 26.16% off its 52-week high ($106.67), trading at just $78.76 at the moment. It has a P/E ratio of 16.04 and EPS growth of 18.66% (last quarter vs. same quarter in prior year).
It goes ex-dividend April 19.
MDC is a position I’d like to add to. I own one share I bought for $28.73 back in February. The home builder isn’t off its 52-week high by much, but it has a lowish P/E ratio (14.98%) and a good dividend yield (3.34%). It also grew its EPS by 78.04% (last quarter vs. same quarter in prior year).
I’m also looking at At&t (T), AbbVie (ABBV) and General Mills (GIS). All three have solid histories of dividend growth (32, 44 and 13 years, respectively). All three have P/E ratios right around 20 and one, GIS, is flirting with a 52-week low.