August 2018 Stock Considerations

With summer in full swing and a new month upon us, it is time for me to outline my potential stock picks for August. Looking forward it seems that we are heading into the month on a strong note (some notable tech companies excluded). Of course, as individual stock pickers it’s our job to weed through all the noise and find those potential income producing gems. With that being said let’s take a look at some of my potential stock picks for August.

 

First up is a popular income producing stock that has stumbled as of late but still looks very attractive to me at current levels. I’m talking about AbbVie Inc. (ABBV). The near 4% yielding stock that is inextricably linked to one drug, Humira. Patent and pipeline issues aside and less than stellar sales figures for Humira have combined into a perfect storm of sorts dragging this once high flying stock back down to Earth. ABBV was my sole purchase in July and it seems that I may take another nibble in August as well.

 

Next, I am still looking at Starbucks Corporation (SBUX) for a potential stock buy this month. It was on my ‘list’ for about four weeks and has rebounded quite nicely form its recent lows under $50. Even north of $50 the stock still looks interesting to me offering patient long term shareholders tremendous dividend growth while sporting an attractive current yield for those jumping in today. The company still has a lot of international runway ahead for expansion and domestically is experimenting with new food and dining concepts including bakery only stores (Princi), Reserve and locations that serve beer and wine catering to late in the day clientele.

 

There you have it. A lean shopping list for the month of August. It’s funny how sometimes I am considering five or six different stocks and other months I have just one or two choices. Of course, I always know that Mr. Market may present some new buying opportunity not mentioned here and for that I just have to keep my eyes open.

 

What do you think about my potential stock picks? Are you considering buying ABBV or SBUX in August. Please let me know below.

 

Disclosure: Long ABBV, SBUX

17 thoughts on “August 2018 Stock Considerations

  1. Good choices. I still find PM and MO interesting. Abbvie, Starbucks, Chubb and Omnicom are also some stocks I look at.

    But, I think BMW provides the best value right now. Insane intangible asset value and very cheap. I do not think BMW will fade away.
    Stockles recently posted…Starbucks In AsiaMy Profile

  2. Pretty short list for August although that makes sense given the 3%+ run up for the markets during the month. I don’t own any exclusive drug companies although JNJ brings a big chunk of revenue from there. I should have scooped up some shares of SBUX under $50 but capital is so light that I held off. Looking forward to seeing what you add.
    JC recently posted…One Raise At A Time | Dividend Raises Are SweetMy Profile

  3. I have been buying up ABBV a lot this year. Started a position in January and have added to it about 3 or 4 times so far this year to keep lowering my cost basis. Picked up a few more shares last week when it was in the high 80 range. I’ll probably hold off on it for a little while now though and focus on some other positions.

  4. I like both of those, and currently own both. I’m happy with my positions right now and don’t plan to add to either one. I’m keeping an eye on Snap-On and Cummins to see if the prices come down a bit more for an add. I also just started a position in Realty Income and may look to add some more if the price is right.
    DivvyDad recently posted…Recent Buy :: Realty Income CorporationMy Profile

  5. Both solid choices, DivHut! I own both already and would consider adding SBUX if it tests its recent lows in the upper $40s, and ABBV if it dips into the upper $80s again. Cash is limited at the moment, so any addition would most likely be a small one. Thanks for sharing your considerations.
    Engineering Dividends recently posted…Portfolio Thoughts (July 2018)My Profile

  6. I own Starbucks, so naturally I love the pickup. I still have some research to do with ABBV, but I’ll do some extra digging this week now. Let us know if you end up picking up one, or both of the stocks.

    Bert

  7. Nice post, agree entirely with going long on SBUX after its drop below $50. I went long as well around $48.
    The company has outrageous intl. potential and hopefully will expand its food offering to compete more with the likes of DNKN and MCD.

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