June Watch List

02 Jun 2018 11:06

Back to list of posts

I’ll be making my monthly cash deposit later this month and will have enough to make a buy transaction in my brokerage and Roth IRA accounts. Looking at my watch list there are 8 equities and 3 REITS sitting in my buy zone.


AbbVie (ABBV) retreated back below $100 and became attractive again and they were not the only drug stock to make it back onto the buy list. Johnson & Johnson (JNJ) has drifted down to the 3% dividend yield mark and I have never gone wrong purchasing JNJ when it breaks the 3% mark.

Pepsico (PEP) slowly inched up back to triple digits to sit at $100.25/share at close on June 1 but still sits in my buy zone. Another staples defensive stock not on my list that looks attractive is General Mills (GIS). GIS is not on my watch list as I prefer consistent annual dividend growth rates of 6% or more but if you are just beginning to create a portfolio this might be a nice buy to help diversify. I believe the market has grossly underestimated the value of the GIS acquisition of Blue Buffalo pet foods. With a 4.6% dividend this looks like a great opportunity to buy.

IBM continues to get punished and it may be overdone as it now yields 4.42%. IBM’s last quarter was good (not great) but is a vast improvement from previous quarters. Unfortunately, IBM lives in the tech sector and in comparison to other tech stock the revenue & earnings growth is not up to par and the market is punishing them.

Leggett & Platt (LEG) still continues to languish due to steel tariffs. LEG’s 3.47% dividend yield goes ex-dividend on June 14 which may motivate me for a quick dividend turn. Finally, Prudential Financial (PRU) drifted back below the $100/share mark and from a diversification perspective my portfolio is light in the insurance area.

Lots of decent buys this month and it will be tough to choose. I have full positions in the drug industry so more than likely I will choose between LEG, PEP, IBM, and PRU

Real Estate

REITS have been slowly climbing back with only a few names remaining in my buy zone and even those sit at the upper end of my buy price. Yahoo finance recently reported that investing money is rotating out of European markets and back into the U.S. with REITs being one of the benefactors which may push prices further.

I restrict REIT purchases to my Roth and if prices continue to climb then I will make no buys for June and will let the cash accumulate. Hopefully another rate scare comes and pushes prices back down.


Comments: 2

Add a New Comment
or Sign in as Wikidot user
(will not be published)
- +

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License