With another new month fast approaching it’s time, once again, to take a look at my current portfolio holdings as well as watch list for potential buys in the month of June. Looking ahead into any new month I know that my first preference for a potential buy rests with my ability to average down on my purchase price. With that being said I still see great value and a relatively high and safe yield in the large Canadian banks. This should come as no surprise to anyone who has been following my blog for a while as I have been buying the Canadian banks every month for close to one full year slowly building up my positions in my ROTH account. Therefore, my first consideration for the month of June is The Bank of Nova Scotia (BNS) followed by The Toronto-Dominion Bank (TD). With attractive valuations at or below their respective five year PEs as well as offering a great current yield these two banks continue to look attractive to me.
My next category of potential buys for the month of June rests solely in my IRA account where I hold the big three health REITs in order of a June buy preference, Ventas, Inc. (VTR), HCP, Inc. (HCP) and Health Care REIT, Inc. (HCN).
As I stated in my May stock consideration post I’m not really looking to add any new names to any of my portfolios this month either, rather just focus on my current holdings and average down on my buy price if at all possible.
My final considerations for stock buys brings me back to my original taxable account where, once again, I am considering adding Johnson & Johnson (JNJ), Emerson Electric Co. (EMR), Caterpillar Inc. (CAT) and Dover Corporation (DOV). Of course, it goes without saying that Mr. Market has the final say in what I decide to buy as stocks that I might not even be considering may present too good a value to pass up.
I guess you might consider my potential June stock buys as a little humdrum in terms of not highlighting any new and exciting investment opportunities. But the way I see it, I like to invest in what makes me comfortable and given the chance to continue to add to many high quality names I already own at better pricing/valuation is exciting enough for me.
What do you think about my potential buys for the month of June? Are you considering any of the names mentioned above for your portfolio? Please let me know below.
Disclosure: Long BNS, TD, VTR, HCP, HCN, JNJ, EMR, CAT, DOV
Keith,
I love averaging down, so your strategy is sound. I added to several REITs in May, including VTR (also have HCN but it is up $10 per share from where I purchased 2 years ago). OHI and WPC also look good right now.
If you were open to new ideas, I would suggest GILD and AAPL. The valuations of both are crazy cheap for companies with much higher than market rates of growth. Plus, the addition of a dividend to GILD, and AAPL’s recent starting a dividend, portend great things for the next few years.
Best wishes,
KeithX
Hi KeithX,
Averaging down is always nice though some might caution about catching ‘falling knives.’ The way I see it, I have confidence in every holding in my portfolio therefore have no problem buying at lower prices. I have a feeling lower REIT prices will be coming our way this year as a result of knee jerk reactions from rising interest rate chatter.
Of the two names you suggest I would prefer GILD over AAPL. I just have no interest in any tech names in my long term portfolio. With GILD paying a dividend now it may start my making my radar though I would like to see several years of dividend payments as well. As always I appreciate your comments.
HA Falling knives, eh? You mean like me being tempted to buy more MAT since it has fallen 30% since I bought it? That might be a falling knife since the prospects for MAT are anything but stellar. Since you are buying solid companies with good prospects, I don’t see any knives in your future.
Technology is a significant part of modern society. While it is true that new inventions can make old tech obsolete, you can do well buying stock in companies that are doing the innovating. I bought AAPL when they announced the iPad at a split adjusted price of $50 per share. I have made more money on that single investment than any other I’ve made in my entire life (and I’m 58 and have been investing for almost 3 decades).
I am inclined to agree with you that GILD is a better bet for new money. In fact, I increased my holdings by 50% this week. 😉
Hi KeithX,
Indeed, your comment reflects a saying I like to live by with regard to asking yourself if you are ‘buying a broken stock or buying a broken company.’ It may very well be that MAT is more of a broken company rather than a broken stock and that’s where the problem may be when considering an ‘averaging down’ strategy. I know many dividend bloggers have been buying into MAT on weakness as an ultra high yield was being offered making it look like a very tempting investment. I never liked any of the toy companies myself even though MAT and HAS have been popular investments in the past. I know many feel that Star Wars toys or other movie tie-ins may be a saving grace for these companies but I’m not convinced.
Regarding tech, I fully agree with your assessment that it is very much a part of modern society and it is here to stay. There’s no doubt about that. But change comes too quickly and suddenly in that sector and I don’t feel comfortable buying into the space. Just over a decade ago three letters signified the Internet for most people… AOL. It was a massive dominant player that is totally irrelevant today. RNWK, an audio and video pioneer that dominated that entire medium online is also irrelevant today. Blackberry??? What’s that? You get my point. But just to show you I’m not a total prude, one of my best investments ever was buying Red Hat, Inc. (RHT) way back in late 2002 and 2003. This was well before I embraced a dividend strategy and needless to say it has been my single best investment as well. So I have invested in tech but that was my one and only buy and sell in the space. Thanks for the reply.
I learned so much reading both of your comments. I used to own APPL, I sold it all, as I think APPL is getting worse and worse. It crashes all the time and their security is not up to par.
I don’t see APPL would become AOL anytime soon because they try to diversify their business to become a financial company with ApplePay. Depending on how the macroeconomic pans out, China and US tension in South East Asia could have domino affect as a high percentage of Apple products are sold in China. Almost 100% apple products made in China. Depending on one source will have its backlash.
Vivianne recently posted…May Dividend Update (+63.3% from Feb)
Hi Vivianne,
I’m glad you can see the value in reading our comments. It’s always fun to share different ideas between one another and get differing opinions. While I agree that AAPL might not currently become the next AOL the reality is that in tech history shows that even the biggest and most successful companies can quickly become irrelevant. We’ll see what AAPL evolves into as it explores the ability to become a financial company or even an auto company. As always, I appreciate your comment.
All great companies – that are also on my watchlist. Right now, BNS is at the top of the watchlist for me.
Best wishes
R2R
Roadmap2Retire recently posted…Recent Buy
Hi R2R,
At least I’m not alone in having BNS at the top of the heap. BNS is my main laggard among the Canadian banks that I do own which is why it’s highest on my buy list. Excited for June to roll around and see what the month delivers for us. Thank you for stopping by and commenting.
All solid picks DivHut. Any of those names are good. Nice to have more skin of the game with bigger positions. For the month of June, I want to add PG and WMT. I’ve been buying too much oil. Thanks for sharing and take care my friend.
Dividend Hustler recently posted…Buys. May 28 2015
Hi DH,
Over the years, ‘more skin’ is the name of the game as that’s where we are all headed. I too would love to add more consumer staples such as PG, CL and CLX among others but not at current price/valuations. I know they are solid and very defensive which usually means ‘not cheap’ but you have to draw the line somewhere. From your picks I would prefer PG over WMT. I just don’t like the big box retailers in general. I know that WMT and TGT are solid long term dividend payers but I just see too many headwinds for those companies long term from the Internet. Keep looking to diversify away from energy if you aren’t comfortable with a large oil position. There are other sectors and names that can offer you decent values as well as current yield. Thank you for stopping by and sharing your thoughts.
DivHut,
Those Canadian banks are all a great value right now. I’m personally looking at UNP, NSC, TROW, and BEN primarily for my next move, but it will be hard to pass up BNS, TD and the rest of the crew considering their value. Nice quality choices all around.
-Gremlin
Hi DG,
Even though the Canadian banks bounced back pretty nicely from their recent lows earlier this year I do agree that they still offer a pretty good value and great current yield. Always nice to get paid to wait. from your picks I like TROW the best. Looks like finance still has the upper hand when determining future stock buys. Thank you for stopping by and commenting.
Im really enjoying your blog. I love how you are the dividends guy. I admit I don’t have much knowledge in dividends as I concentrate more on real estate but I know that some day, I will be looking to diversify and dividends will be where I go next. Ill be sure to keep informed on your blog.
Keep em coming!
Hi CFD,
Thank you for your kind words. I know there are many types of investment vehicles out there, from stocks to bonds to real estate and more but for my long term investment dollars I would only consider stocks that pay dividends. After all, I like the idea of getting paid to wait. I hope you keep coming back to check up on the progress of my real world dividend portfolio as well as other dividend-centric articles that I write. Thank you for stopping by and commenting.
Hey DH,
Good choices bud. I’m also looking to add to my position in BNS and average it down a bit. They posted some good results today, and I’m expecting they’ill be announcing higher dividends next quarter. Other than that, perhaps Telus…
Best regards,
DB
Dividend Beginner recently posted…Side Hustle: Released My First Mobile Application
Hi DB,
The large Canadian banks continue to amaze. Their dividend history throughout some pretty rough economic patches looks second to none. That’s got to say something for management as well as overall business practices which is really what we are looking for in our long term investments. BNS still tops my buy list for June and I’m curious to see how the month unfolds. Thank you for stopping by and sharing your thoughts.
bought BNS just the other day @ 51.68, cool to see you’re on a similar page! After purchases of TD and BNS in the last month or two. Done with Canada for a while.
Hi Dan,
I’d like to be done with Canada for a while too but between pretty good values and current yield I’m still tempted to continue buying in the Canadian banking space. Glad to be a fellow shareholder with you in TD and BNS. I feel both will be great long term buys. Thank you for stopping by and commenting.
Great list of stocks. I like all your choices. If only I had more money 🙂
Dividend Dreams recently posted…Dividend Income Update – May 2015
Hi DD,
You know the saying, “So many great companies, so little capital.” Unless things really turn drastically ugly it looks like I’ll be buying what’s already in my portfolio rather than initiate new positions. As always, I appreciate your comment.
Not sure if you saw Tim’s post today, but it’s an endorsement of the Canadian banking system. Worth a few minutes to read.
http://theconservativeincomeinvestor.com/2015/05/29/an-introduction-to-canadian-dividend-investors/
KeithX,
I did not see this. Thank you for sharing!
Good list.
My June buy list: GILD, AMGN, and UNP.
Hi StM,
Thanks. I have been reading a lot about UNP and GILD among the dividend bloggers recently. Both seem like solid picks going forward though I would like a longer dividend history with GILD. Thank you for commenting.
I agree GILD just started their dividend. I need more bio/healthcare stocks in my portfolio, so GILD is my best option at the moment.
Hi StM,
Fair enough. The truth is that besides consumer staples that I’d like to add, health stocks are high on my list too but with BDX, BCR, ABBV and ABT trading at such high valuations all I’m left with is JNJ if looking for a long term dividend payer. I don’t doubt that GILD is a great health stock as its growth has been stellar in the past I just like to invest in companies that have longer dividend histories. Thanks for the reply.
Wow. Sam, I bought exactly the same stocks this month. 🙂
Interesting 🙂
AMGN and GILD because I need more bio/healthcare stocks in my portfolio.
I choose UNP over NSC because they are more diversified.
Humdrum is good DH, I like your stock considerations, those are great companies with attractive valuation. I love boring stocks, I try to avoid stocks that will make me go crazy on trying to figure out when will it accumulate in price. Slow and steady finishes the race.
FrugalityToFinancialFreedom recently posted…Stock purchase – May 2015 III
Hi FTFF,
From 2007, when I started following a dividend growth strategy, till 2014 I only bought companies that were already in my portfolio. It wasn’t till last summer that I began to expand my portfolio holdings to include, TD, BNS, RY, UL, HCP, HCN, VTR, DOV and ADM. In other words, it was humdrum all along for many, many years as I really wasn’t interested in adding any new names. Glad you like my June considerations. It looks like I’ll be making a Canadian bank buy in June unless something dramatic happens. Totally agree with you about slow and steady too. Thank you for stopping by and commenting.
I think you have some nice REIT’s on your watch list. I don’t own HCN, but HCP is about 2.5% weight for me and VTR about 1.5%. They are both very close to the potential buy price that I set quite some time ago. However, I’m now starting to lean toward waiting a while. As you noted in a comment above, it’s quite possible that a raise in interest rates will cause a decent drop in these equities.
I view HCP as more risky than VTR, mostly due to HCP’s tenant concentration and the issue with HCR ManorCare. I’m hesitant to give HCP any more weight, and will likely add to VTR when the time comes. VTR also seems to present a better value than HCN. JMO of course.
Hi DG,
I totally understand your hesitation about adding any more to your current REIT holdings because of your weight in the sector. For my portfolio the REITs still represent a very small allocation which is why I am considering adding some in June. The reality though is that my first choices for June remain with with large Canadian banks unless something really dramatic happens to change that thinking. I still think it may be OK to nibble on REITs in general while we all hold our breath waiting for that dreaded Fed announcement. You just know that after the Fed speaks with regard to interest rates all REITs will tank. As always I appreciate you stopping by and sharing your thoughts and holdings.
Hi DivHut!
Both BNS and TD is on my “buy these” list. I think they are both very good companies and I’m looking forward to buy them
Cheers.
ANHA recently posted…Dividend Income: May 2015
Hi ANHA,
Glad to see that I’m not alone in liking the Canadian banks. Both BNS and TD are my number one and number two choices for June. Of course, Mr. Market may have other plans for me but for now I’m still on a Canadian bank kick. Thank you for stopping by sharing your potential buys.
Am I the only one still checking out the energy companies? Once I get the capital, I’d like to average down on XOM, CVX, and either NOV or KMI (possibly the latter, since the former is one of my largest portfolio positions). I see these valuations as once in a lifetime chances, and I’m sure oil prices will climb back up soon, taking the discounted stock prices with them.
Sincerely,
ARB–Angry Retail Banker
ARB recently posted…Yes, You Have To Show ID: A Candid Talk About Identity Theft And Why I Stopped Caring
Hi ARB,
I wouldn’t say that you are the only one interested in energy as I have been reading other buys that included CVX and RDS.B among some of the dividend bloggers. What I would say is that the enthusiasm for the sector has definitely waned over the months as oil prices continue to be depressed and many dividend bloggers have overweighted energy sectors in their respective portfolios. Even though I do not own any energy in my long term portfolios I do agree with you that the opportunities we have in energy today is a once in a lifetime event and that you have the right idea about being greedy when others are fearful. Thank you for stopping by and commenting.
Great list DH! I’m definitely in the market for some CAT. I’ll keep an eye on the other stocks mentioned as well.
Thanks, Ken
Dividend Empire recently posted…Dividend Growth Investor Survey
Hi DE,
Glad you like my potential buys for June. If CAT takes another tumble I’ll be picking up some more shares there. But among all my potential buys for the month CAT ranks towards the bottom while my Canadian bank picks rank towards the top. I do like the value and yield of this great cyclical name and plan to keep it as a long term holding. As always, I appreciate your comment.
I just discovered your blog & am very interested in reading & reviewing your investments & dividends! Thanks, … G!
Hi Ann,
Happy that you have stumbled upon DivHut. Please check back regularly and follow along my real world dividend portfolio as new buys are updated monthly. Please feel free to comment or ask any questions you may have as well.
DivHut,
Great list of companies up there! I like CAT, TD, and JNJ from the group. Hopefully CAT drifts closer to 80 and if TD drops below 40 again I will like add. JNJ can be added pretty much any time.
MDP
My Dividend Pipeline recently posted…May 2015 Recap
Hi MDP.
It looks like BNS and TD will top my buy list in June. Of course, as the month progresses I will most likely be adding some of the other names mentioned too. CAT really rebounded nicely in recent weeks and I agree that if it gets to around $80 it’s definitely worth a buy. I wish I had added more to that one a little while ago. I’m also looking forward to make the first buys for baby DivHut. He’s not getting any younger 🙂 and those dividends need to start compounding. Thank you for stopping by and commenting.
You do have some quality names over there! So just keep it up!
Cheers,
Mike
DivGuy recently posted…I Prefer the Small Telus over the Giant Verizon
Hi DG,
Yup. As I mentioned, maybe a little humdrum in terms of mentioning names we all know and love but quality nonetheless and still trading at decent prices/valuation and good current yield. Appreciate the support and comment.
We have some of the same stocks on our watch lists. For June I am considering purchases in several areas. REITS – W.P. Carey (WPC), Omega Healthcare Investors (OHI) and HCP Inc. (HCP). I see value in the Canadian Banks, my first choice is Bank of Nova Scotia (BNS). Considering several other dividend stocks as well, lets see how this month goes. Thanks for sharing your dividend ideas.
Hi DE,
It seems that many are liking REITs in recent weeks as I have been reading about a lot of different REIT buys among the dividend bloggers. I like the three you mention with a preference towards health. I think we are all waiting for that knee jerk reaction to hit the REIT sector once the Fed raises interest rates. Even though the raise might be incremental there will be a lot of backlash against the REITs which will no doubt give us better buying opportunities. Thank you for stopping by and commenting. Nice to see we have some similarities between our June buy lists.
I own all of them except VTR. The debate between picking up more of the same or looking for a different sector. I’ve been hoarding cash the last few months; maybe it’s time to relook at my sector breakdowns and good reentry points on things. I’ve also been looking at UNP and DEO
Hi DH,
I can understand about not wanting to load up on several names in similar sectors as we all ask the question at some point… KO or PEP, DE or CAT, HCP or HCN, etc. For my money, I’m OK in buying two or three companies in exactly the same sector if each is a solid name and can provide more diversification within a sector. From your choices I like DEO though it does look a little pricey at current levels. I know many of the dividend bloggers have been buying up UNP in recent weeks. Thank you for stopping by and commenting.