July 2017 Stock Considerations

Here we are with another installment of my “stock considerations” for the upcoming month. With the first week of trading upon us in July, it is time, once again, to lay out a plan for my potential stock picks for the month. As many of you already know, I make sure to purchase at least one stock every single month no matter where we are in a business or macro economic cycle. The goal of every long term dividend growth investor is to remain consistent with their buys and try not to attempt to time the market and wait for the “best” possible time to invest. Time in the market is our single greatest asset that allows for faster compounding and “smoothing” out those inevitable peaks and valleys of stock prices we all experience in the near term. With that being said, let’s take a look at my July 2017 stock considerations.

 

First up is a name I bought several months ago and am considering once again, Johnson Controls International plc (JCI). JCI is a solid long term dividend paying industrial that has been lagging a bit post it’s Adient plc (ADNT) spin off and continues to look decent to me at current levels.

 

Next, I am considering adding to my Pfizer Inc. (PFE) holding. Last month saw me “blitz” into the pharma/biotech space with four new positions in my portfolio including, Pfizer Inc. (PFE), Teva Pharmaceutical Industries Limited (TEVA), Amgen Inc. (AMGN) and Gilead Sciences, Inc. (GILD). While all four holdings are very small portions of my portfolio I plan to slowly increase their size as opportunities to average down come up.

 

Finally, I am looking at the health REITs once again. It’s been a while since I added to any of my current holdings and HCP, Inc. (HCP) is starting to look OK to me once again. Basically, anything under a $30 price could potentially trigger a buy.

 

As always, I conclude these posts with the caveat that Mr. Market always has the last word with regards to my potential buys. New buying opportunities can creep up unexpectedly as was the case with The Kroger Co. (KR), Target Corporation (TGT) or Wal-Mart Stores, Inc. (WMT) as an example last month. What do you think about my potential stock picks for the month of July? Are any of the names mentioned above making your buy list this month? Please let me know below.

 

Disclosure: Long JCI, ADNT, PFE, TEVA, AMGN, GILD, HCP

43 thoughts on “July 2017 Stock Considerations

    • Hi MD,

      I agree. PFE still looks like a decent value at current levels. I wouldn’t say a screaming buy but rather a fair value play. The biotech/pharma space has been on fire in recent weeks and I only wish I pulled the trigger a little earlier. Oh well. I have a small enough position that will make it easier to average down should the need come. As always, I appreciate your comment.

  1. Nice list there Divhut. Own PFE and HCP from this list. Enjoy having both holdings and the doividend checks that come with it. Of course HCP has had quite the past 12 months with the spin-off of QCP, but I am still positive about the company in the long haul. Don’t think you could go wrong cherry picking from this listing! Let us know what you decide to buy.

    Bert
    Dividend Diplomats recently posted…Lanny’s July Dividend Stock Watch ListMy Profile

    • Hi DD,

      HCP is still the laggard in the health REIT space, especially after that QCP spin off. I’m still waiting for them to announce a distribution policy. Holding QCP without any dividends coming in is tough. Like you, I plan to keep HCP for the long haul and think they will be fine years down the road. HCP is still one of the big three health REITs out there and the industry as a whole still has a long term tailwind behind it. Thank you for sharing your thoughts.

    • Hi JP,

      I think VTR is the blue chip health REIT today with HCN a close second. No doubt, HCP has fallen on harder times, especially after that QCP spin off, but I think over the long haul it should do just fine which is why I continue to hold that stock and plan to add more if I see it below $30. Thank you for commenting.

    • Hi Gd,

      PFE is a pretty popular health sector stock among our dividend investing peers. Of course, I think nothing matches JNJ for the long haul but I’m not willing to buy that stock at current prices. You aren’t alone in hoarding cash. I have been reading more and more posts about people selling some or all of their stocks and/or building up a cash position in anticipation of a correction. You must always do what makes you most comfortable. Thank you for sharing your thoughts.

    • Hi BHL,

      I have been looking at PFE for a while and only recently decided to add it to my portfolio. I agree that it should be a great dividend performer for many years to come which is why I plan to make it a “forever” holding. As always, I appreciate your comment.

  2. Some good pics. It is interesting to see what Mr. Market does and what sector will create value this month. I have been looking at GILD and PFE. I really like HCP, but if I am going to throw a little more money into REIT, I may just add to my position of O for the monthly compounding. Especially since that is still a relatively small portion of my portfolio It wouldn’t hurt to add a little more to it.
    Dividend Daze recently posted…Recent Buy – General Mills (GIS)My Profile

    • Hi DD,

      Mr. Market always has the last word when it comes to deciding where I’ll deploy my fresh capital. Going forward, I think I’ll continue to look at the health/pharma/biotech space in July, unless something major happens. Check out LTC for a monthly health REIT. Thank you for stopping by and commenting.

    • Hi DG,

      You mention many great names. I think I should look at SJM a little closer. I have been reading more and more comments/posts about that solid dividend stock in recent days as its stock price has faltered. Thank you for commenting.

    • Hi dividendgeek,

      Thanks for sharing your potential pick. Not a bad way to go for instant diversification in my favorite sector. Vanguard is well known for its low fees. As always, I appreciate your comment.

  3. Right now I´m buying more nordic stocks. They are still cheap. I have done the following: started a position in the third largest jewlery company, Pandora. Bought more in Yara (one of the biggest fertilizing companies in the world), added a few shares of H&M. I find CVS, Cardinal Health, HRL, Qualcomm, CSCO and especially Compass Minerals to be fairly valued.

    However, I´m keen on some banks, and Citigroup has the lowest P/B. BOA might turn out good if Buffet starts buying again.
    Stockles recently posted…How To Travel The World On A BudgetMy Profile

    • Hi Stockles,

      Looks like you have been on a recent buying spree. Too bad I’m not familiar with most of the names you have picked up but if they look cheap I can understand why you decided to buy. You mentioned many great stocks on the U.S. side that have been quite popular as of late among our investing peers. I picked up some CAH and HRL after their price recent swoons. Even with the market at all time highs there are still good relative values out there. Thank you for sharing your thoughts.

  4. Nice picks for the month! I’m definitely on board with Kroger (KR). In fact, I added some to my account after it fell following Amazon’s announcement. Love the buying opportunities that arise like this. Agree as well that Pfizer is a great long term buy and hold.

    Scott

    • Hi TI,

      Seems like you and many others have jumped aboard the KR bandwagon. Can’t say that I blame you. They, along with WMT still dominate the grocery industry and that recent price swoon created a solid buying opportunity. Seems like many companies have stumbled a bit after that AMZN announcement. Thanks for sharing your pick up.

  5. DivHut,

    All great choice for next upcoming purchases. And, great job on picking up some bio/pharm in your portfolio. I’m not sure how much you pay attention to policy over in Washington, but there might be some changes in the near future that may benefit bio & pharma. FDA drug approval process might be shorter to get new drugs out in the market, but a lot of these big drug companies are funding these smaller bio/pharma startup waiting to buy them out in the near term. Think of it as their venture arm in pharma. We could see an increase in these Pharm/Bio companies when these policy take affect. Again, it’s nice to collect dividends while we wait.

    Might I recommend BMY. They’re a solid run company, and very profitable. Also for foreign picks, I recommend GSK, or SNY.
    Micro Dividends recently posted…3 July 2017 – DIS, MA, MDT, LGI, WR, GPC, PPL, NCV, M, MCA, BSD, IRET, BKCC, PFLT, HRBMy Profile

    • Hi MD,

      Seems that any health related stock has its pulse on what happens in Washington. Honestly, I’m not really following any of the political drama but focused more so on boosting my overall health sector holdings for the long term with my recent buys and considerations in July. I did look at GSK and BMY as other pharma considerations but didn’t want to go overboard with too many new additions. After all, last month I initiated four new positions with TEVA, GILD, AMGN and PFE. Thank you for sharing your suggestions.

    • Hi Passivecanadianincome,

      PFE is pretty popular among our dividend investing peers. I have seen it in quite a few different portfolios online. As you can see from my potential picks I’m still leaning towards the health sector in July. We’ll see how July unfolds. Thank you for stopping by and commenting.

    • Hi timeinthemarket,

      Thanks for that vote of confidence. I guess there’s good reason I see PFE in many portfolios online. As always, I appreciate your comment.

    • Hi Brian,

      Happy to be a fellow shareholder with you in this big pharma stock. It was time for me to add to my health sector holdings. I might be considering GSK as well going forward. We’ll see. One step at a time. Thank you for commenting.

  6. My most recent purchase was Skyworks, because I think that it’s just a matter of time before we have smart toasters and smart fridges in addition to our smart phones. $PFE looks pretty interesting right now, as does $GILD. I don’t have much in the way of pharma stocks. I’m also feeling a little cautious lately, though it hasn’t stopped me from making my once-a-month purchases either. Ah well- just keep divving! 🙂
    Meow recently posted…7 Cheap, Healthy Foods you can Cook for One without a RefrigeratorMy Profile

    • Hi Meow,

      Appreciate you mentioning your recent pick up. No doubt the ‘Internet of things’ revolution is just starting with a crazy opportunity to grow. The pharma/biotech space has been super hot as of late. Many beaten down stocks have risen quite a bit so it will be interesting to see if there is a near term pull back coming. Like you, no matter what happens I’ll still make my monthly purchase. Thank you for stopping by and commenting.

    • Hi Doug,

      I still feel like boosting my overall health sector holdings going forward which is why July has a health lean with my potential buys. PFE has been a name I was watching for a while and finally decided to pull the trigger on it last month. It will be interesting to see how the market as a whole does in July. I have a feeling we’ll continue this melt up. Thank you for sharing your thoughts.

  7. I think that’s a good list Div Hut. I’m a fan of PFE mainly because of sentimental reasons, as it was one of the first stocks I purchased when I got into the stock market. I also think HCP is good. I hate the idea of owning REITs in a taxable account in general (I’m not sure if your portfolio is held inside of a taxable account), but I like HCP’s price and current yield. Good luck. Looking forward to seeing what you eventually end up buying.
    Dividend Portfolio recently posted…June Dividend Income ReportMy Profile

    • Hi DP,

      It seems like PFE is getting a lot of love based on the comments left. If the market continues to melt up I think I’ll be looking to add to more health sector stocks and build up my smaller positions and maybe even add another big pharma play too. I hold all my REITs in an IRA account. I try, when I can, to limit my tax liability. Thank you for stopping by and commenting.

    • Hi R2R,

      Nothing too exotic as usual. A lot more of the “standard” dividend plays for me which is how I like it. I did take a look at LAC. Way out of my wheelhouse but not out of the question if I decide to gamble a bit 🙂 As always, I appreciate your comment.

  8. HCP is interesting and I hold about 100 shares of it myself. I’m less fond after the QCP spinoff because it’s essentially been dead money to me and I haven’t like the returns since then. I’ll be curious to see what happens over the next few years with them. I also liked PFE and bought them a couple months ago. I think drug makers will get a boom over the next couple of years as the boomers start really retiring and having more ad more ailments.

    • Hi DD,

      I feel you on HCP and the QCP spin off. I can’t wait for the day they announce a distribution policy. Anything really. A token 1% yield will even suffice. I’ll be looking at my health stocks more so going forward. I do want to boost my overall exposure to the sector with more of the stalwarts like JNJ, ABT, ABBV and other pharma/biotech names like PFE and maybe even initiate a GSK position as well. We’ll see how July unfolds. Thank you for commenting.

  9. I triggered TGT and KR, but I’m not sure about getting into pharmaceutical biz. but GILD is looking interesting again at ~$70. Baxter is doing quite well, as our hospital is using tons of their products, and you can see in the share price.

    It’s never a bad idea to buy Pfizer. 😛 The yield alone is quite nice.

    • Hi Vivianne,

      Well played. Many have been buying TGT and KR on weakness. I’m still not fond of the retail sector but think you picked up some good names that should rebound from these lows. I think my focus will shift towards health a bit as I want to boost my overall exposure to the sector. As you know, my consumer staples and industrial holdings are the largest portions of my portfolio. Thank you for stopping by and commenting.

  10. I’m still holding on to GILD for now. They have a cash horde and their HCV line is still incredibly profitable (for now). But they need to develop another blockbuster (or buy one), which the company has the resources to do, they’re just taking their sweet time, so Mr. Market is discounting the uncertainty.

    Would have been nice to add some shares before the recent pop, but I think they’re still deeply undervalued.

    • Hi catfishwizard,

      I plan to keep GILD “forever.” While still at attractive prices today I sure wouldn’t mind them coming back to levels seen about two weeks ago before their recent pop. I think they’ll be fine long term. Just have to be patient and be happy collecting a pretty good yield close to 3% in the meantime. Thank you for stopping by and commenting.

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