June 2017 Stock Considerations

Where is 2017 going? I can’t believe we’re already knocking on the door of summer. I guess the older we get the faster time seems to fly by. That point just illustrates to me the importance of staying invested in the market no matter what crazy headlines are being written nor what events transpire around the world. Time is the one finite commodity that we can never get more of, so why not always keep your money in the trusted hands of stellar dividend paying stocks and use that time to your compounding advantage?

 

With the month of June already underway, it is time, once again, to outline my potential stock buys for the month. With the markets still at all time highs, these choices are seemingly becoming more and more difficult to come by but despite these lofty levels there are still some individual names that are trading at good to decent levels.

 

First up is a name I bought a few 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.

 

Similarly, several other dividend stalwarts seem to have been falling on harder times as of late as their stock prices declined considerably driving their yields to attractive levels once again. Those names include, in no particular order, Hormel Foods Corporation (HRL) and General Mills, Inc. (GIS). I have bought both names in May and will continue to watch these laggards in June.

 

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.

 

Of course, new names that I’m not formally considering may pop up on my radar suddenly because of a near term price swoon which I more often than not take advantage of. I’ll gladly buy into a “flash sale” courtesy of Mr. Market.

 

What do you think about my stock picks for the month of June? Are any of the names above on your potential buy list too? Please let me know below.

 

Disclosure: Long JCI, ADNT, HRL, GIS, HCP

36 thoughts on “June 2017 Stock Considerations

    • Hi FC,

      That price swoon gave us all much better buying levels. For me it was finally seeing a yield north of 2% that caused me to pull the trigger. Congrats on your call pick up. I think it will be a good trade for you. Thank you for stopping by and commenting.

  1. Bet you are loving that your favorite sector is getting hit so hard recently. Especially since you have already added to your positions in GIS and HRL this past month. If anything, I already missed my shot at HCP since it is back up around my original cost basis. Still looking at QCOM but usually something else pops up that looks even better so never got around to pulling the trigger.
    Dividend Daze recently posted…Dividend Update – MayMy Profile

    • Hi DD,

      The consumer staples have been weak for many, many months. Of course, there are some standouts like UL flying ever higher but I’ll take GIS or HRL “on sale.” I’ll only pick up some HCP if I see the stock drift below $30. The REITs have come back nicely but some are still trading at good levels. I think I missed the QCOM boat last month. It was a May consideration but has climbed nicely last month. As always, I appreciate your comment.

    • Hi Passivecanadianincome,

      GIS continues to look “sick” which is only giving us better buying opportunities. I still believe that they are experiencing near term headwinds and will come out better down the line. You know me, as long as their dividend remains safe I’ll continue to look at this stock. Thank you for sharing your thoughts.

    • Hi FV,

      JCI at current levels looks pretty good. It’s a long time holding for me and I have been happy with it all these years. I still wonder why it’s not in more portfolios I see online. Thank you for commenting.

    • Hi DG,

      Always nice to see another DGI blogger looking at the same names I am. I added to my BMS not long ago after their big price swoon in late April. Talk about a ‘boring’ aristocrat. Thank you for stopping by and commenting.

  2. GIS and HRL are both looking pretty good here. For a higher growth name I like NKE here in the low $50’s. VFC still looks attractive to me in the mid-$50s. I’d really like to add one or two of the data center REITs but for the most part they are just too expensive. It’s slim pickings right now but there’s always pockets of value if you go around looking.
    JC recently posted…Dividend Update Preview – May 2017 [Infographic]My Profile

    • Hi JC,

      You said it. No matter how high the general market is there are always individual stocks trading at attractive levels. While GIS and HRL are both on my short list for June I wouldn’t mind adding to my VFC as well but not at current levels. I’d like to see that stock at $50 or below again before I buy. Thanks for sharing some of your potential picks. For high growth SBUX might be an alternative to NKE. As always, I appreciate your comment.

    • Hi At,

      Whether as a holding or for options I think GIS can deliver some nice long term income. Thank you for stopping by and commenting.

  3. I like HRL. I am adding to my smaller positions right now (GLW & PFG) both of which I love, especially Corning. I feel big things for this stock. JCI shows up on my radar all the time but I have never bought it. It is a solid stock and I can see it having a place in a portfolio. Their debt is a bit too high for me but not outrageous. Thanks for sharing
    Brian recently posted…2017 May Dividends have arrived !My Profile

    • Hi Brian,

      Appreciate you sharing some of the names currently catching your eye. JCI has been in my portfolio almost from the beginning of my DGI days. I’m happy their spin off ADNT initiated a dividend recently. It’s not a super popular stock but it has performed very well for me over the years. While I don’t plan to make it a large portion of my portfolio I do feel it still deserves a spot. IR is another solid industrial play that I like for many years yet I also don’t see it in any other portfolio online. Thank you for commenting.

    • Hi Jay,

      Don’t blink or it will be New Year’s once again 🙂 I never follow any of the “advice” headlines or talking heads offer. Markets and individual stocks go up and down are in and out of favor and it’s all part of the normal ebbs and flows of the market. I like to buy when stocks are out of favor as that’s usually the best time to initiate or add to a position. Thank you for stopping by and commenting.

    • Hi DI,

      There is still a lot of negativity around GIS which only means better buying opportunities for people like us. It’s amazing to see a staple like GIS in the doldrums while UL is flying high. I never heard of Greene King before. Looks like an interesting company from what I have seen. Investing in pubs can be like a DEO proxy I guess. Thank you for stopping by and sharing.

  4. Div Hut, for what it’s worth, I like HRL and I’m starting to look at GIS, I also like HCP. Although HCP had to cut its dividend recently, I like the stock price and I think it’s still a healthy company. You’re clearly looking at solid companies for June.
    Dividend Portfolio recently posted…May Dividend Income ReportMy Profile

    • Hi DP,

      Nice to see you are considering some of the same names I am. I’m not afraid to add to my dividend cutters. I kept buying more WFC, GE and IR after they cut years ago. I think longer term HCP will be fine and I’ll just wait to make a buy at a price below $30. Of course, other solid names that I’m not considering still look weak like GWW and VFC but I’d rather add to my consumer staples at this time. Thank you for sharing your thoughts.

  5. I´ve added HRL twice in the last month. Was lucky and both a portion when it was down 5.5% not long ago. Actually, I also bought OHI when it was trading at 30.50%. Quality REIT with more than 7.5 % yield (I know you don´t like that high yields, but I think it´s pretty safe). Looking at Verizon at the moment and Apple.
    Stockles recently posted…Dividend Income is up 69.53 % since last yearMy Profile

    • Hi Stockles,

      HRL seems like a boring, safe and dependable dividend payer. Like you, I added to my HRL a couple times in recent months after disappointing earnings reports. I know that OHI is very, very popular among our DGI peers and for good reason. I currently hold CCP which is a high yielding REIT courtesy of the VTR spin off so I’m not totally against high yields 🙂 Thank you for stopping by and commenting.

        • Hi Stockles,

          While I will probably do nothing, for now, your comment got me thinking about the future of CCP after the SBRA merger goes through. You bring up some good points about dumping CCP instead of “gaining” a new combined company that you never had an interest in the first place. Something for me to ponder.

  6. Ah – HRL – its been a few months since I’ve considered adding them to my portfolio. Love the brands. Great dividend paying stock as well. Hopefully it falls into your price range and can add some shares to your portfolio. There are some great deals on healthcare REITs as well. Happy shopping here in May 🙂

    Bert
    Dividend Diplomats recently posted…Just Go For ItMy Profile

    • Hi DD,

      I’m a little surprised more people did not jump on HRL in recent days. When the stock was yielding over 2% it was my signal to buy. I guess 2% isn’t high enough to get people to buy even though it is a historically high yield for that stock. I’m still waiting to see HCP below $30 before I pull the trigger there. It seems that there is a big question about more rate hikes this year after the jobs report which could keep the REITs at loftier levels. As always, I appreciate your comment.

    • Hi CS,

      I always love writing these road maps for potential buys every month. While not a rule, I do tend to stick to my own choices almost every month. GIS and HRL still look attractive to me in June. I’ll wait to see HCP below $30 before I consider a buy there. Thank you for commenting.

  7. This is why I like investing in individual stocks. You can still find some good deals out there. Investing in the S&P500 would result in buying a lot of companies that relatively high valuations. Thanks for the stock tips. I’ll be looking more into a few of these.

    Scott
    Two Investing recently posted…May 2017 IncomeMy Profile

    • Hi TI,

      You said it. For me, it’s always going to be about individual stocks. While the market marches ever higher there are still good to decent values out there. I still have not made my June buy(s) but I know I’ll pull the trigger on something. Thank you for commenting.

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