Stock Watchlist for October 2016
Autumn is upon us and with the new month and the changing of the weather, it is time to hunt for some new dividends. This month’s targets feature some already familiar names for me, stocks I already own and am looking for the right price range. Alternatively, there are some new stock targets that I am looking to initiate a new position in and then proceed to sit back and let the dividends roll in. Like they did, last month…except wanting to hit my first triple digit payout month from my portfolio. I’m ready to get back into this investing thing and here’s some of what I’m looking at.
Nike- I’ve already bought 10 shares in my brokerage account and have another $50 going into Nike stock on Loyal3 later today, so it really isn’t sitting on my watch list anymore. However, I’m still intently tracking the price and hoping for a further drop. I still have an extra $200 sitting in my brokerage account and a free automatic investment credit, which means around another 4 shares could be purchased by Tuesday.
Nike isn’t a screaming bargain at $51-52 a share but it is definitely trading in the range of fair value in my opinion. Yes, buying 10 shares only added $6.40 to my forward dividends but this is a company which consistently grows at a heavy clip, which makes up for the low yield. If this dips into the low to mid $40s, I will be buying the hell out of the drop.
I know that Nike recently missed analyst’s expectations for the last quarter’s earnings BUT tales of its demise seem overblown. For instance, on a constant currency basis, footwear sales in China were up 25% versus 2015 and apparel sales up 15%. In Western Europe, apparel sales went up 26%! So, yeah, there’s problems however they seem completely manageable. Oh and total revenues were up 10% on a currency neutral basis. We good.
Diageo- It has dropped back into the $108 per share range, which is still above what I paid for it at the end of the last year but not by much. Just received the second payment of the semi-annual dividend yesterday and would of course like to gear up for February 2017’s payout with more shares. More Guinness and more liquor is fine by me.
Tiffany & Co.- I only have a little more than 3 shares of this right now for some reason. Definitely should’ve bought more when it was in the $58 range but I’m an idiot who wanted a vacation instead…Nevertheless, I need to grab more shares to boost the total, and I would very much like it to fall back into the 60s. Solid dividend and a $500 million stock buyback program has commenced while share prices have fallen.
Disney- Haven’t done much of any research on Disney yet. It’s price is down to $90 which intrigues me and Morningstar has it as a 5 star rated stock right now. I’ll have to have my own look at it to see what’s what but Disney has my attention.
Coca-Cola- Doing it’s usual dance between the $40-45 range. It’s at $41 or so today. For the love of God, can this ever fall to the mid 30s again? Seriously, a 10-15% correction is too much to ask for? Not really in consideration to be bought at this point, just have my eye on it.
ExxonMobil- Probably going to restart my DRIP of this stock and possibly PSX as well. My cost basis is in the mid-70s range and it’s back down to $86 a share today, of its 52 week high of around $95. I’d start the $50 monthly contributions in the low to mid 80s and then buy full shares if it fell further.