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

36 thoughts on “August 2018 Stock Considerations

    • Hi MR,

      ABBV is one of my largest holdings in my portfolio and, at the right price, I wouldn’t mind adding more. Of course, there is a point when too much can be too much, even for a stalwart like ABBV. Still haven’t made my August buy so we’ll see what I ultimately buy.

  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

    • Hi Stockles,

      Thanks for sharing some of your potential picks. I know PM and MO have been quite popular among many in the DGI community for a long, long time. Really, every company you mentioned looks like a strong long term candidate. As always, I appreciate your comment.

    • Hi AS,

      I totally agree. I plan to keep both in my portfolio for the foreseeable future. I wouldn’t mind adding to my SBUX as it’s still a relatively small part of my overall portfolio. Thank you for commenting.

    • Hi DD,

      I still like SBUX and ABBV even though both have posted some pretty nice gains in recent weeks. There are always places to invest… you just have look a little deeper sometimes. CAH might be an alternative for me if I don’t go with SBUX or ABBV. We’ll see. Still haven’t made my August buy yet.

  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

    • Hi JC,

      Sometimes it seems like I post a laundry list of potential buys and every now and then a very, very short list. So far in August I am liking two potential stocks to add to my portfolio. Like you, I feel like I missed SBUX under $50 but that’s OK. I still like it at current levels for a potential long haul investment.

    • Hi dividendgeek,

      Well, ABBV is highly dependent on one drug though the company does have a pretty solid pipeline. It seems that Humira risks are overblown in my opinion and long term ABBV looks like a potential strong hold, especially with its safe dividend based on current cash flow. I like both SBUX and ABBV long term.

  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.

    • Hi DD,

      ABBV is one of my largest positions in my portfolio. I got a bunch from the ABT spin off and continued to add over the years. Though it’s a large holding of mine I still feel comfortable adding to it if the price is right. Still waiting to make my August buy. As always, I appreciate your comment.

    • Hi DG,

      I’m with you. As long as prices remain around $50+/- it should be a good pick up long term. It’s still a small part of my overall portfolio so I wouldn’t mind bulking up that position going forward.

    • Hi DP,

      I think both SBUX and ABBV are solid long term plays. Of course, if you can pick some shares up on sale all the better. Still waiting to make my August buy. We’ll see where I ultimately deploy my cash.

    • Hi MDD,

      It can be tough to wait on the sidelines sometimes when cash is low but sometimes it can be a good thing when the brakes are pressed on investing. Gives us time to really think things through and not just jump in carelessly. Thank you for commenting.

    • Hi Passivecanadianincome,

      I think we all know too well that things can change at any moment with Mr. Market at the helm of stocks. Short list this month and looks like both names have been popular as of late. I don’t hold any Canadian utilities but do have those solid banks 🙂

  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

    • Hi DD,

      Thanks for sharing some of your names. I don’t hold any you mention though I have seen CMI and O in many DGI portfolios. As always, I appreciate your comment.

    • Hi DD,

      There’s a lot to like about both names long term. Every now and then Mr. Market gives us a good sale price to pick some up. Still waiting to make my August buy.

  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

    • Hi ED,

      Seeing both ABBV and SBUX at the levels you mention would get most in the DGI community to pick some up. I wouldn’t mind seeing SBUX under $50 again to nibble there. Still haven’t made my August buy but I know I’ll pick something up.

    • Hi DS,

      SBUX has been on everyone’s mind since diving below $50. Though the price has rebounded some I still might pick some up at current levels. We’ll see where my August buy will go.

  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

    • Hi DD,

      So far I have not made an August buy but, as you know, I will buy something this month. Seems like I let the SBUX train depart without picking up some shares. I was away when it was under $50 and was not following the markets at all. Oh well. I’m sure there will be another time to pick some up at better prices. It still looks attractive to me at current levels though.

  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.

    • Hi SAMBM,

      Still haven’t pulled the trigger on SBUX under $50. I was away on vacation with my family and, quite honestly, totally tuned out the markets and any news. Still might pick some up this month even if it is above $50. Long term I like it as it’s international runway is still quite long.

Leave a Comment

CommentLuv badge

This site uses Akismet to reduce spam. Learn how your comment data is processed.