Watchlist update: July

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.

 

  • AT&T stock is trading around the low 30’s for a long time now, the most recent ‘setback’ has been the appeal of the DoJ about the merger between T and Time Warner. In my opinion it’s short term noise and the stock at this price offers a great dividend yield and potential gains. T has been on a buying spree, you could say they need to start lowering their 200 billion USD debt, but I like the idea of them expanding their business into new segments like media (Time Warner), ads (AppNexus( and web security (AlienVault). Today AT&T trades at $31,67 with a P/E of 18,85 (forward of 9,03), dividend yield of 6,31% and the stock is close to it’s 52-week low of $31,17.
1 year chart of AT&T.

 

  • Starbucks was slammed on their latest earnings, the company announced some more store closings and lower than expected comparable stores growth. Yet they also increased the dividend by 20% and their China plans are still strong. Starbucks is shifting from a pure growth company to a more solid name without a doubt. The stock has traded quite flat for the three years now, however there is still a lot of value to be unlocked. And management has shown in the previous year to seriously commit to shareholder returns through dividends. Today Starbucks trades at a price of $51,62 with a P/E of 16,39, dividend yield of 2,79% and the stock is a little bit above their 52-week low of $47,37.
1 year chart of Starbucks.

 

  • General Dynamics has been in a rough patch ever since the trade war fears have started. I believe it has little to do with the stock itself, it’s been dragged down by the entire industrial sector. It remains a solid play in a world where defense spendings are going up and up. The company is quite a new dividend aristocrat and management showed us investors that they’re committed to returning cash to us through nice dividend increases. Today General Dynamics trades at a price of $192,74 with a P/E of 18,96, dividend yield of 1,93% and the stock is just 4,63% above the 52-week low of $184,21.
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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2 Comments

  1. Hi DI,

    Your Top 3 are all solid companies. I already have a rather large position in AT&T myself.

    Our watchlist for July can be found here: https://www.junginrente.de/en/watchlist/

    Our Top 3 consist of German retailer Metro, US pharmaceutical company CVS and UK advertiser WPP.

    – David

    • DutchIndependence

      Nice and diversified list you have there! Great to see different investors bringing different idea’s to the table! Have a good one!

      DI

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