June 2018 Stock Considerations

As we approach a new month it is time, once again, to outline my potential stock buys for June. Not to sound cliché, but where has the time gone? Are we really approaching the half way point of 2018 in one month? I guess so and I can take solace in the fact that I have remained invested in this crazy market with all its wild gyrations while steadily collecting my dividend income. No need to panic even though at times the market did look quite scary in May. Being a long term dividend growth investor really tests your mettle and I know that no matter what happens I will not be shaken out of my stocks. With that being said let’s take a look at my potential stock buys for the month of June.

 

Looking forward to June my plan is to stick with the beaten staples once again as I did in May. Last month I picked up shares in The Clorox Company (CLX) and PepsiCo, Inc. (PEP) and seeing both yield well over 3% each stock continues to entice me in June. Also in the staples space I am looking at adding to my The Procter & Gamble Company (PG) with a historically high yield close to 4%. A lot of quality companies are on sale and nibbling on these safe yields while they are still high seem like a good long term bet for those willing to ride out any near and mid term pain. In the same sector I am also considering severely beaten General Mills, Inc. (GIS). While I’m not a yield chaser per se you have to admit that seeing some of these stalwart companies sporting juicy dividends because of lower share prices is too hard to ignore.

 

Finally, I am considering one stock in the biotech space that is a very small holding in my portfolio, Gilead Sciences, Inc. (GILD). While the biotech space can be a lot more volatile than some “boring” staples or utility play it can offer some huge potential gains all the while paying you to wait with a generous dividend.

 

So there you have it. My picks for June. What do you think about my potential buy(s)? Are you considering names in the staples or other sectors as well? Please let me know below.

 

Disclosure: Long CLX, PEP, PG, GIS GILD

39 thoughts on “June 2018 Stock Considerations

    • Hi DI,

      For sure! Seems like many of us are buying quality staples and even utilities as both sectors have experienced a meltdown this year. It’s hard to ignore some of these juicy yields 🙂

    • Hi MR,

      Nice to see we are thinking along the same lines. PPL is looking very interesting at these levels. Talk about a utility that has taken it on the head in 2018. For now my utility plays are D, SO and ED.

  1. PEP is looking really attractive here and I just might add a bit more to my position. The staples got whacked hard in late April/early May and haven’t really recovered all that much. Really wish I’d have been thinking about this earlier since PEP’s ex-div is 5/31. I knew it had a pretty big decline but hadn’t noticed that the yield was up over 3.6%. GILD is an interesting pick. I don’t own any pure play pharma/biotech stocks so it’s an interesting candidate for sure. Hopefully you get to scoop up some shares of these companies at even bigger discounts.

    • Hi JC,

      Seems like 2018 is the year for staples, REITs and utilities as sectors that have been beaten down hard. I think we’ll continue to see some good buys in these spaces for the foreseeable future but I wouldn’t mind seeing even bigger discounts as you mentioned. In the meantime, it will be nibble, nibble, nibble on these quality higher yielding stocks.

    • Hi DD,

      GILD can still be considered a growth stock though it does pay a dividend. Investing in any biotech you have to expect some volatility as drug pipelines are sometimes killed by the FDA for various reasons. It’s important for any biotech to have a strong and varied pipeline either by creation or acquisition.

    • Hi desidividend,

      Nice pick up. I like PEP a lot long term. It’s such a diversified company. Happy to be a fellow GILD shareholder too. It’s such a small part of my portfolio and I wouldn’t mind bulking it up a bit.

    • Hi Passivecanadianincome,

      The stacking will continue 🙂 Between staples, REITs and utilities one has many, many choices for investment these days.

  2. All good choices. PG is high on my buy list, but no capital to deploy right now after my last buy. I own GIS, but don’t plan to add any more soon. It has had a lot of problems lately and there is just too much other value in the market that I could buy instead. But that is just me. Looking forward to seeing what else you buy.

    • Hi DD,

      I can understand your hesitation with GIS. No doubt the company has many near and mid term issues. I think they are taking the right steps going forward though with strategic acquisitions catering to changing consumer tastes. Time will tell if GIS can pull out of its nosedive though.

  3. DivHut,

    PG, GIS, CLX, and PEP are places I would like to put some cash down. The more I follow the market, the more irrational it seems. The day people stop using those general staples (and new staples like their phone – AAPL / T / VZ) will be one the world rues or it will be the beginning of some sort of mystical enlightenment – probably the former though.

    – Gremlin
    Dividend Gremlin recently posted…Recent Buy, May 2018My Profile

    • Hi DG,

      Well said. There are certain items the world uses on a daily basis and I’d like to be a part owner of any of those businesses. Today it’s the staples that are in the dog house. Next year it will be something else and so on. Take advantage of the higher yields and better pricing while they are offered.

  4. Hey Keith, I’m picking up pep hsy Clx and jnj at 3% if possible. There are lots of things to buy in this market. We just need to continue nibbling

  5. DivHut,

    I like all your considerations. I own 3 of the ones mentioned, PG, GIS, and GILD and would love to add PEP and CLX to my portfolio. All of those mentioned, with the exception of perhaps GILD, are on my shortlist of potentials buys. I like GILD but rather allocate funds in the consumer staple stocks while the valuations are relatively low. Last week I considered swapping out my TGT position for PEP in one of my accounts and I now regret not doing so, still an option I am considering though.

    I just added to my CPB position this afternoon which I initiated in recent months. There are many consumer staple stocks to choose from these days.

    Regards,

    PIV

    • Hi PIV,

      Thanks for sharing some of your stock market action. No doubt we have a lot of great choices to allocate our money these days. We are seeing staples selling at such attractive levels along with REITs too and some other individual names that it can be difficult in deciding where to buy. I say, take advantage while you can. Seeing some of these staples offering up safe 3%-4%+ yields is hard to ignore.

  6. Good picks here. Consumer staples have seen their fair share of a beating over the last few months/year. I’ve been gobbling them up as fast as I can but there just isn’t enough free cash to get them all! Short term, it hurts to see them fall further. Longterm, I’m relatively certain i’ll be laughing all the way to the bank. Unless we find a quality alternative to razors, toilet paper, and household goods, it’s as safe a bet as any.

    • Hi GBF,

      Your comment highlights why I like staples the most for a long term hold. These companies provide so many daily essentials it’s hard to imagine life without them. If I was starting a DGI portfolio today, I’d definitely focus on the staples as a strong base for my holdings.

  7. Hey DivHut… all solid stocks to choose from. I own PEP, PG & GILD, and I could see owning CLX as well. I haven’t been looking at GIS. GILD seems to have stabilized recently, despite the biotech group appearing to be out of favor. Of course that can change quickly, so I could see adding to GILD here if you are looking to boost a smaller position.
    Engineering Dividends recently posted…Monthly Dividend Income (May 2018)My Profile

    • Hi ED,

      Judging by many of the recent purchases our peers are making it seems that the staples is the sector “du jour.” GILD is a very, very small part of my overall portfolio and ideally I’d like to be as evenly spread out as possible which one of the reasons I am considering that stock. We’ll see how June continues to unfold. Too many great staples to ignore.

    • Hi DD,

      The staples are my largest sector holdings among my portfolios. There’s good reason for that. Seeing the whole sector trade at much more attractive levels definitely makes me happy as I plan to continue adding to this depressed sector.

  8. Definitively some wonderful businesses I have on my stock watch list as well. PEP and P&G really look extremely attractive. I’ve initiated a position in PEP a while ago, will quite certainly top up quite a bit.
    J&J and Anheuser Bush are companies I’ve an eye on as well. Two other names are Kraftheinz and Altria. They are all tempting but chances are that we’ll see even more attractive entry prices.
    Keep it up and happy shopping!
    Cheers
    Financial Shaper recently posted…Putting my pay rise to workMy Profile

    • Hi FS,

      I think you mention all good names to consider. Clearly, the staples are going on sale, even though some might still be considered expensive, they are all trading at much better levels when compared to just a few months or a year ago.

  9. Hi DH,

    High dividend yields seem to be a bit of a theme at the moment. Prices on many quality names have either sunken or stagnated as the dividends have risen. we’ll take it as we know it just means a better starting point for the dividend snowball to compound.

    Take care,
    Ryan
    Get Rich Brothers recently posted…May 2018 Portfolio UpdateMy Profile

    • Hi GRB,

      I’ll gladly take lower prices and higher sustainable yields from solid companies any day. Seeing the staples get hammered in 2018 has really opened up some good buying opportunities for long term dividend holders.

  10. DivHut,

    A lot of strong companies in that list. My favorite of all of them is GILD. It is slowly becoming one of my largest holdings. Good dividend and growth prospects. Over the last year or two, I made quite a bit in options premium by selling puts on the company. Might have to pick up some more GILD soon.

    Scott
    Two Investing recently posted…May 2018 IncomeMy Profile

    • Hi TI,

      Staples and REITs seem to offer the best relative values so far in 2018. Looks like I might go with a staple purchase in June though GILD is also enticing me. Biotech companies are quite volatile when compared to staples but can offer greater long term returns with some blockbuster pipeline drugs.

    • Hi DP,

      I agree with both PG and GIS at these levels though GIS really has some haters even at depressed levels and really high yield. Can’t say I blame them for the negativity based on shrinking GIS sales but it seems that the company is making some good moves by acquiring “today” companies and adapting to changing consumer tastes.

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