April 2018 Stock Considerations

As many of you know, every month I like to highlight several stocks I am considering adding to my portfolio for my monthly buy(s). Looking forward towards April, I realize that I have way more than a “few” names I am considering adding to my portfolio. The recent market volatility we have been witnessing the last couple of months has given rise to a plethora of choices for investing that we have not seen in a very, very long time. Since we are already familiar with all the names I am considering (no need to rehash reasons for my buys), I will simply list out the many stocks that I am looking to buy in April, and, of course would appreciate everyone’s opinion and choice(s). With that being said, let’s take a look at my April stock considerations:

 

Health REITs

  • HCP, Inc. (HCP)
  • Welltower Inc. (WELL)
  • Ventas, Inc. (VTR)
  • LTC Properties, Inc. (LTC)

Utilities

  • Dominion Energy, Inc. (D)
  • The Southern Company (SO)
  • PPL Corporation (PPL)

Industrial

  • General Electric Company (GE)
  • Johnson Controls International plc (JCI)

Staples

  • General Mills, Inc. (GIS)
  • The Kraft Heinz Company (KHC)
  • Kimberly-Clark Corporation (KMB)

Health

  • Johnson & Johnson (JNJ)
  • Cardinal Health, Inc. (CAH)

 

I don’t remember ever having such a long list of potential buys for a particular month. Could this signify a turning point for the markets in general? Who knows. The only thing I do know is that I will continue to nibble on stocks every month and keep building my passive income stream share by individual share. In theory, I wouldn’t mind buying a piece of every stock listed but it is just not possible. Are you looking to pick up any of the stocks mentioned above? Please let me know below.

 

Disclosure: Long HCP, WELL, VTR, LTC, D, SO, GE, JCI, GIS, KHC, KMB, JNJ, CAH

39 thoughts on “April 2018 Stock Considerations

    • Hi BD,

      It’s been a long time since we have had so many solid dividend payers go on sale. It’s nice to see that many of us are considering buying the same names mentioned and that, as a whole, we are not afraid or being shaken out of the market, rather just keeping cool and buying as we can. As always, I appreciate your comment.

  1. Hi DH. This is an interesting dilemma – it is almost like there is too much food on the table, and it all looks tasty. Hard to decide what to eat!

    I like the utility and consumer sectors for the long term. I have my eye on KHC and KMB, and I recently bought D. I would add CVS to this list. I think the company is undervalued, no matter what happens with the Aetna acquisition.

    GE scares me a bit, because of the uncertain future. If Buffett makes a play, the value will increase substantially, and the long-term future looks better.

    • Hi DF,

      Well said. There is definitely no shortage of choices for us going forward when it comes to choosing a qualified dividend paying stock. Whole sectors are seemingly going on sale and with no sign of volatility ending I think we’ll be seeing many more opportunities in the weeks and months ahead. There are a lot of great companies sporting some very, very juicy yields as of late. I look forward to seeing what our community buys. Thank you for commenting.

  2. Hello DivHut….I already own most stocks mentioned. I sold GE when it was in the 20’s. This is the second time they cut the dividend. NOT GOOD FOR GE. I already own SO,KMB,GIS,KHC and JNJ. I am just adding more shares because I want to lower my cost per share on some of them. I am looking to start a position PPL. Lets see what happens……..

    • Hi JG,

      You already own many solid long term dividend payers. Congrats on taking that step. GE seems to be stuck in the mud for the foreseeable future. Of course, it’s anyone’s guess as to if/when the stock will pull out of its nosedive and for those that want to sleep well at night it seems prudent to trim or cut loose from that stock as you did. PPL looks like a very interesting buy these days and I’m not sure why more of us aren’t considering this stock. I think the U.K. portion of their operations might be the wild card that keep some potential investors away. Thank you for commenting.

  3. Great mix of choice pics. I have been waiting on General Mills and HCP. I feelHCP will rebound but GIS has been getting beat up lately over the Blue Buffalo deal. Wondering if it will go much lower or have issues with the dividend payout.

    • Hi Joe,

      As you already know, GIS had a terrible March and seeing it yield well over 4% can be considered a historical high yield for the stock. For those that have been waiting for a ‘good’ time to buy it seems like this is as good a time as any to add to a long term DGI portfolio. While I also like the REITs I may opt to buy other sector stocks as I do not want to become too top heavy in that space. Thank you for stopping by and commenting.

    • Hi DD,

      Even though I recently added to my D, I still might buy more especially if it remains near its 52 week low. We have many ‘high yield’ choices these days not seen in a long, long time. Just look at PM, MO, GIS, D, SO, KHC, KMB and many others yielding well over 3% to over 5%. These are the days we have been waiting for so let’s take advantage. As always, I appreciate your comment.

  4. We are fishing from the same pond for the most part Keith. I wanted to add to KMB this week, but I procrastinated and it ran up about 7%. I will be patient and wait for another opportunity. I like GIS’s dividend yield now, but they appear to have frozen it for the next couple years to help fund the pet food acquisition and deleverage. Tom
    Tom @ Dividends Diversify recently posted…Timeless Investing PrinciplesMy Profile

    • Hi DD,

      Even with a frozen dividend, GIS still offers a pretty juicy yield that appears to be safe. I think many of us are ‘fishing from the same pond’ these days as we all seem to have our eyes on the same solid companies that are finally going on sale offering us much better prices values and yields not seen in a long time. Thank you for stopping by and commenting.

    • Hi p2035,

      As you can see in my portfolio I do not hold T nor VZ. Nothing against the stocks/companies, and I know they are dividend staples for most in the DGI game, but I just don’t like their business models long term. I see them both as racing towards zero with their core offering in a constant battle to offer more services at lower and lower pricing. Of course, T and VZ are slowly becoming media companies and not pure telcos of decades ago which is a smart adaptation. I guess they are just not in my wheelhouse. Thank you for sharing your thoughts.

    • Hi Passivecanadianincome,

      GIS had a miserable March which puts it as one of the front runners for an April buy. Seeing KHC yielding around 4% and KMB also with a juicy yield shows how the staples have fallen out of favor as of late. As you stated, ‘more options and values out there.’ Thank you for stopping by and commenting.

    • Hi MR,

      Thanks for sharing some of your potential picks for the month. I think many of us are looking at JNJ as it’s such a solid dividend payer and any chance to buy it at better prices seems very rare and short lived.

    • Hi DD,

      As you know, the staples are a sector that rarely goes on sale, and for good reason as it’s very defensive. I know there are some great deals in the REITs and utilities, but seeing some of my favorite staples on sale might be too much for me to ignore. As always, I appreciate your comment.

    • Hi vivianne,

      I like your attitude. Sometimes people see volatile markets and get shaken out either by selling and going to cash or refusing to buy more shares at discounted prices. My plan, as usual, is to make a monthly buy. Thank you for commenting.

    • Hi DG,

      I totally agree. These are the times, while scary, that are good to be a long term dividend growth investor. We always gripe about there never being a sale… well, here we are. Many, many stocks are on sale these days. I’m looking forward to seeing where our fellow DGI peers invest this month. Thank you for stopping by and commenting.

    • Hi DS,

      I don’t blame you. GE is definitely not a sleep well at night stock these days. It’s amazing how far from grace this stock/company has fallen yet at some price point it will become a compelling buy that cannot be ignored. GIS is looking interesting after a terrible showing in March. Stay tuned for my buy(s) post. Thank you for commenting.

    • Hi PIG,

      This was the very first time I found myself with a true laundry list of potential candidates for my monthly buy(s). No doubt the REITs and utilities are still very popular choices but now we have quite a few names in other sectors to contend with as well. Good times for a dividend investor to buy long. Thank you for sharing your thoughts.

  5. DivHut,

    I am right there with you on the staples. KMB is a recent addition to my portfolio and I have been very close to starting a position in KHC. Some of the REITs are definitely looking better than they have in some time.

    PIV

    • Hi PIV,

      I’m happy to finally see many staples come down in price. It seems like the staples are always expensive, but, I guess that’s for good reason as it’s a very defensive sector. Seeing KHC with a yield of 4% seems ripe to me 🙂 After many, many long months with little good buying opportunities we are finally being served up a lot of choices. Thank you for commenting.

    • Hi DP,

      I still like the health REITs a lot too but there comes a point when you become too heavy in a particular sector and/or stock. I’m not saying I’m there yet but I do acknowledge that it might be a factor for me to not buy into the space further. Of course, time will tell where I deploy my cash for the month. Thank you for stopping by and commenting.

    • Hi BM,

      Seeing GE touch $12 and change almost compelled me to pull the trigger but I decided to let April unfold further instead. GE is a company facing many issues but there is a price point that will be too hard to ignore, even for GE. As with any stock buy… time will tell. Conglomerates might not make sense anymore but that doesn’t mean GE is dead nor the conglomerate model. A few years ago fast food was dead. It didn’t make any sense in a world of new, fast casual dining offering healthy, organic and fresh fare but alas, fast food giants like MCD, YUM, JACK, WEN and more adapted and changed and are back to being the kings. As always, I appreciate your comment.

    • Hi timeinthemarket,

      Seeing the DOW rise and fall by triple digits for several weeks straight has definitely given us some better buying opportunities as of late. JNJ is probably one of the more solid names to consider these days though, at times, it seems nothing is truly “safe” Thank you for commenting.

    • Hi Stockles,

      I think we still have a lot of choices these days among the staples, utilities and REITs for that matter. Most companies are trading at levels not seen in years so why not take advantage of bettering prices, values and yields. Thank you for commenting.

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