Watchlist update: April

In the middle of every month I will update my current stocks watchlist, and post a top 3. Below are my reasons for looking at these stocks, for current valuations and a list of 25 stocks please visit my ‘Watchlist’ page.

I will explain my top 3 watchlist stocks briefly based on sentiment, P/E ratio and ‘% off 52 week high’:

 

  • General Mills is a packaged foods company that has recently put their focus on healthy and fresh products. They are known from brands like Annie’s, Betty Crocker, Pillsbury, Old El Paso, Haagen-Dazs, Cheerios, Trix, Cocoa Puffs and Lucky Charms. Recently the company has been under fire on Wall Street because of their acquisition of Blue Buffalo Pet Products for $8 billion. It might be an expensive acquisition but by diversifying into another market with a company that produces of the best product lines for animals seems like a long term winner to me. The last few years there has been a lot of weakness in the stock price due to falling yoghurt and cereal sales, but the company is slowly turning around the ship and getting into more ‘hip’ products.
    Currently at a price of $44,80 their yield is 4,38% at a payout ratio of 51,20% with a P/E ratio of 15,57, General Mills paid out a dividend since 1898 and has never cut it, their recent streak of increasing dividends sits at 14 years.
1 year chart of General Mills .

 

  • AT&T (American Telephone & Telegraph) is a company that was founded in 1885, it’s currently worlds largest telecommunication company with a market capitalization of 219 billion dollars. The company is hard at work to add multiple streams of revenue to their sheets, in 2015 they bought DirecTV, and in 2016 it announced a merger deal with Time Warner to expand their media segment, this deal is still in the works as we speak, as the DoJ (Department of Justice) took AT&T to court. Furthermore they have large scale cable, satellite TV, wireless and broadband operations. AT&T qualifies as a dividend aristocrat, having raised their dividend 33 years in a row, it’s also the highest yielding aristocrat; at a price of $35,14 the yield is 5,69%, at a payout ratio of 41% (of predicted earnings) and their P/E ratio is 23,65 (due to tax implications in 2017, forward P/E comes in at 10,13). This deal to me is a no-brainer, a management focused on returning shareholder value as seen in their dividend increasing streak, and also an active management trying to better the company by acquisitions and opportunities like the upcoming 5G.
1 year chart of AT&T.

 

  • Amgen has appeared in this watchlist before, in February they were at a price of $185 and now they are as low as $171, yielding a 3,08% dividend. Click here to read what I’ve written about Amgen previously.
1 year chart of Amgen.

 

The markets keep surprising us in 2018 and there seems to be a lot more value available than last year, I like the industrial stocks coming down a bit but I felt that these stocks currently presented most value. I’m curious to see what kind of stocks you are currently watching, let me know down below!

 

Happy investing!

Disclosure: I’m long GIS and T.

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4 Comments

  1. From the list GIS is definitely my personal favourite. I would also add KHC, which is a similar story. As always: wish I had more money to invest 🙂

    • DutchIndependence

      KHC was a close one in my opinion aswell, getting very attractive at these levels. I know your problem, I feel like this at least 5 times a day.

      DI

  2. Great list! GIS and T are definitely at attractive levels at the moment. Might add to both soon!

    Keep up the great work!

  3. I would definitely agree with Road runner and Tall Investment.
    I bet on GIS stock also because most of the analysts suggests the price target for 12 month between 42-61 USD. The price is right so as the dividend yield and the policy of it.

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