Watchlist update: August

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’:

 

To see last months choices click here.

This month while updating my watchlist it suddenly hit me; stock prices have gone up steadily, yet P/E ratios kept dropping. This economy may be in an extremely long bull run, yet companies don’t seem all too overvalued just yet. They keep hitting the ball out of the park with their earnings! It’s a great time to be an DGI investor!

 

  • Illinois Tool Works is a huge company, to me it’s like it’s own ETF. It’s extremely diversified with a huge list of daughter companies, a true industrial conglomerate. Recently they’ve had a nice dip while their earnings were stable, and they raised their dividend by a ‘measly’ 28%. On top of that they are a dividend aristocrat with 43 years of dividend growth. Never a bad feat!
1 year chart of Illinois Tool Works.

 

  • AT&T is the champion of this watchlist series, it got featured over 5 times now. Last month after their earnings report I bought 100 shares at $30,25, and I continue to believe in T. Their new media segment will start competing on many fronts soon, the only big downside for me is the huge pile of debt that sits around $185 billion. But last quarter they have showed to focus on this debt AND small acquisitions to position themselves perfectly for the future.
1 year chart of AT&T.

 

  • General Dynamics got featured last month as well. I continue to like their price and future prospects. This is what I had to say about GD last month:

General Dynamics is a company which is active in many segments, they have increased their dividend every year for the past 25+ years. The segments in which they’re active include; Aerospace, Combat Systems, Marine Systems and Information Systems and Technology. They design and built Gulfstream jets,  armored vehicles and nuclear submarines, destroyers and cargo ships for the US navy. They also design information and communication techniques and systems for governments and businesses. The companies biggest client is the US navy with approximately 71% of the revenue coming from them. The leftovers are filled in by international governments and businesses. As they work on sensitive projects, most of what is in their pipeline is kept a secret. Although these two less than optimal facts, I believe GD is a great dividend growth option. They have proven to focus on building their dividend payout up. Also with America spending a huge amount of money on national defense GD is set up to do well for many more years.

1 year chart of General Dynamics.

 

These are my top three picks for this month, what will be your buys this month?

Happy investing!

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4 Comments

    • DutchIndependence

      I have no cash on hand otherwise I would’ve done the same! Great opportunity!

      DI

  1. Love the watch list DI! I’m a big fan of ITW right now and have established a nice position over the last month. GD is picking up a lot of steam in the dividend community right now and I’ll have to look into them further. Thanks for the initial write-up about them though!

    Bert

    • DutchIndependence

      Everyone seems to be a fan of ITW right now haha. GD is not the most popular stock among DG investors but it should offer great returns in the future in my opinion!

      DI

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