Watchlist update: September

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.

Lately I’ve focused on non dividend growth stocks like Alibaba and JD.com for a bit, and I’m closely following Alphabet. But with this post the focus is fully back on DGI stocks.

 

  • Intel is not known for a long history of consistent dividends or dividend raises, yet it offers a nice initial yield of 2,5%+, increased the dividend for three years and has a payout ratio of just 30,9%. Along with the rest of the technology sector Intel seems to reward their shareholders more and more through dividends and this is a great development.
1 year chart of Intel.

 

  • Altria has raised their dividend twice in 2018, the total increase came down to a whopping 20,40%. Although the cigarette business may seem unethic to some, or maybe even a bad investment due to declining sales, tabacco companies have shown quite the opposite the past years. Every year the earnings per share grow, and dividends keep growing along with it. Companies like Altria and Philip Morris have been great investments.
1 year chart of Altria.

 

  • AbbVie has risen from around $60 to a solid $90 just before last year, although it isn’t at it highest point anymore. I think the current price should be about right. They have an amazing dividend history of 48 consecutive raises and just this year they have risen the dividend by a whopping 35%. Since the spin off from Abbott Laboratories in 2013 the dividend has been raised by an amazing 140%. With a current yield of about 4% there is little to complain about with this company.
1 year chart of AbbVie.

 

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

Happy investing!

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5 Comments

  1. nice list Dutch.

    If I were to pick one pit of the bunch it would be abbvie. Its current price point looks pretty tempting.

    I already bought qsr this month, so gotta wait til next month for the next buy.

    cheers

    • DutchIndependence

      Don’t you just hate waiting on the sidelines until there is more cash available? I’m also increasingly looking at ABBV, hoping to buy a bit very soon! Nice buy with QSR though!

      DI

  2. Hi DI. Nice list. Glad to see Intel is on it. That is one of the stocks that’s REALLY high on my own watch list as well. MO and PM are going to be my next buys, but I think INTC has a good chance for being next months buy.

    SD

    • DutchIndependence

      I agree, Intel shows a lot of great potential for dividends and stock price. And the big tobacco companies have never dissapointed any investor anyway. I’m curious to see which one will turn out to be your next buy!

      DI

  3. That’s a nice list. I don’t think you can go wrong with any. And I hope not since I own all 3. Thanks for having DD on your blogroll! Tom

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