December 2018 Stock Considerations

As we soon enter the last month of 2018, it is time, once again, to highlight some of my potential stock buys for December. It’s funny how some months I prepare a long list of potential stocks to buy and other months I barely scrape a few names together. With the start of December at hand it appears I’ll have a very short list of potential buys. With that being said let’s take a look at my potential picks for the up coming month.

 

First up, I’m thinking about doing more of the same which is buy more AT&T Inc. (T), especially if stock prices remain at $30 or below. T was my sole purchase in November as prices remain depressed and yields get pushed ever higher. Sure, there are a lot of near term headwinds this company is currently facing, not least of which is its debt load, but, the dividend still appears to be quite safe and can reward patient shareholders over the long haul. T still remains less than 1% of my taxable account and much less when compared to all three of my portfolios. In other words, I’m still comfortable adding to my position.

 

Next, is a polarizing name that you either love or hate but looking strictly at the numbers has become too hard to ignore. I’m talking about Altria Group, Inc. (MO). MO has had a tough 2018, but in recent weeks the stock has really been beaten down hard pushing yields to around the 6% mark. With a moderate payout ratio around 51%, MO has the cash to keep paying this juicy yield. As with T, MO is also less than 1% of my overall portfolio which allows me to add to my position.

 

Finally, I’m looking at a couple of health sector names that have also been beaten up as of late but seem to offer good potential long term gains and yields, Gilead Sciences, Inc. (GILD) and AbbVie Inc. (ABBV). While I am really loving ABBV at these levels it is already a sizable portion of my portfolio and I may defer to GILD instead which is offering a historically high yield these days because of depressed prices.

 

What do you think about my December stock considerations? Are you looking at any of these stocks too? Please let me know below.

 

Disclosure: Long T, MO, ABBV, GILD

15 thoughts on “December 2018 Stock Considerations

  1. It is hard to argue about any of these selections, and I’ve been contemplating additions to my position in both T and MO as well. The prices of both are extremely attractive right now.

    ABBV has had a little recovery in price, but with it still being close to a 5% yield it is hard not to like it. Of these four, I don’t own GILD so haven’t done much analysis on it but at a quick glance it looks pretty attractive right now too.
    DivvyDad recently posted…Recent Buy :: Target and VYMMy Profile

  2. Keith, I’m not very familiar with GILD, but the other 3 names have some extremely compelling dividend yields. T and MO, do not get much love from the average investor. In fact, I remember in years past, you were not very excited about big telecom’s prospects? ABBV still has a lot of sales concentration in Humira that holds back the stock price in my opinion. ABBV and MO have had tremendous dividend growth the last couple years which is great for such high yielder’s. Tom
    Tom @ Dividends Diversify recently posted…Can You Hear Me Now? – VerizonMy Profile

  3. I own MO, ABBV, and GILD, and have added to ABBV and MO in recent weeks. I like ABBV more than GILD here, but your thinking on adding to GILD given your ABBV weighting makes sense.
    I’m not a Telecom fan and thus don’t own/follow T, but the yield looks enticing and I can see why it has appeal throughout the DGI community.
    Lots of good choices you’ve lined up, DivHut… I look forward to your selection.
    Engineering Dividends recently posted…Recent Transactions (HRL, LOW, WPC, MO)My Profile

  4. Hi Keith:

    I have MO on my radar for December as well. T I own and I want to expand out before added more though the price is temping. I think if T can really cut its debt like it thinks we wont see close to a 7% div for quite a while. ABBV is always on my watchlist but I hasn’t been in the buy position yet. GILD I haven’t looked into much.

    Cheers

  5. Hey Keith,

    Two names on the list have my interest at the moment:
    Though I never picked up any shares, MO (and PM, for that matter) has interested me for its sizeable yield. However, I’ve been held out as I’ve always been concerned about the direction of the industry itself. That said, this is the reason the strong tobacco stocks have been out of favour and thus financially attractive for decades….
    Along with many other personal finance bloggers, I decided to initiate a position in ABBV over the last month on its price weakness. If the volatility provides a healthy opportunity to double down, I hope to do just that soon.

    Take care,
    Ryan
    Get Rich Brothers recently posted…Q3 2018 Dividend ReportMy Profile

  6. Nice blog! I started a blog 6 months ago at 67 and am looking for blogs that I can learn from. I know it is hard work and often frustrating. I will give a good try even though I know I don’t have as much ‘time’.

  7. Hey there! AbbVie and Altria (now after the Cronos Buy even more) are on my list too! Above that I might buy BASF, which is probably going to drop a lot tomorrow. Best Wishes! Nils

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