March 2017 Stock Considerations

With a new month close at hand it is time, once again, for me to lay out some of my stock considerations for the next several weeks of March. The point of these posts is to help take some of the guesswork out of where I plan to allocate my fresh capital going forward. By making my selections ahead of time I find it easier to commit to buys as all the homework and investment theses have already been completed on my end. All that’s left to do is pull the ‘buy’ trigger. These days, it seems easier said than done as the market, and many stocks I am considering continue to march higher. I am finding it increasingly difficult deciding where I’d like to allocate my fresh capital. Rest assured, I will be making at least one buy in March as I aim to stick to my own mantra of remaining consistent with my buys during all market conditions. I have no intentions of breaking my streak of making monthly buys. That being said, as I look at my portfolio I am left with a handful of potential choices for the month of March.

 

One of my first choices for the month of March is industrial stalwart Johnson Controls International plc (JCI). This stock recently merged with Tyco International and spun off its automotive interior business Adient plc (ADNT) and now operates as two separate entities. The stock is looking more attractive when compared to prices and values of late 2016.

 

Another name I am considering, and has been very, very, popular among our dividend investing peers recently is, V.F. Corporation (VFC). By now, most of you are familiar with this name as the stock recently traded near its 52 week low around $48 and most of us were buying. While the stock bounced back from its low in recent days it still trades at very favorable levels and yields north of 3%.

 

Going into March I am considering initiating a new position in my portfolio with Hormel Foods Corporation (HRL). This is a company that needs no introduction and is in a sector that I favor. The stock is down quite a bit over the last year which has given this dividend stalwart a yield approaching 2%. As with VFC yielding over 3%, which is historically high, seeing HRL yielding 2% or more would make this stock’s yield historically high and a compelling choice for a buy in March.

 

Finally, I am looking at the health REITs once again, with Care Capital Properties, Inc. (CCP) being my choice in the space. Entering my portfolio via a Ventas, Inc. (VTR) spin off, CCP is still trading at favorable values and is offering a very juicy yield for the added risk of owning this skilled nursing REIT.

 

As always, these posts are ended with the caveat that Mr. Market has the final say and names that I have not mentioned above may suddenly become attractive. As you can see this month I have a relatively short list of stocks that I am considering. No doubt because compelling values and yields are harder to come by.

 

What stocks are you considering this month? Are any of the above names I’m considering making your top picks? Please let me know below.

 

Disclosure: Long JCI, ADNT, VFC, CCP, VTR

32 thoughts on “March 2017 Stock Considerations

    • Hi BHL,

      Believe me, I’d love to add to those ‘massive names’ you are thinking about but they all seem just a bit too pricey for my liking. While this month is a relatively short list of stocks I am considering, I still think they offer pretty good relative value. We’ll see where my fresh dollars go. In the meantime, I’m sitting back and watching. Thank you for stopping by and commenting.

  1. I have recently bought VFC as well. Missed the bottom but I think it’s still attractive at current levels. HRL also looks like a good deal nowadays. Health care REITs are also a good long term pay investment in my view. Nevertheless I’m not a big fan of JCI, but maybe I’m missing something when looking at the numbers.
    I also like QCOM, especially after the sell off in January.
    Nice recommendations altogether for March.
    Roadrunner recently posted…What to Do With Unexpected Money?My Profile

    • Hi Roadrunner,

      I wouldn’t worry too much about ‘missing the bottom’ in VFC. The company is still facing many near term headwinds, not least of which is a very strong U.S. dollar so it still may hit $50 or below going forward. Besides, yielding over 3% is historically high for this stock and the value its offering is still attractive with a safe and growing dividend too even at current levels. I’m hoping the health REITs get hammered in the near term because of a Fed rate hike. That always shocks the prices of those stocks down. Thank you for stopping by and sharing your thoughts.

  2. I’m hoping to make a few additions in March. VFC still looks solid here but I currently have an open put option at $50 so I won’t be making any open market purchases. Thanks for bringing up JCI because I wouldn’t mind adding to some industrials. LOW is looking pretty good here especially if it pulls back to the low $70s. Almost all of the companies I’d like to add are okay values, but not great values. But the good news is when I logged into my main brokerage account tonight I saw they lowered their commissions which was a welcomed sight. That opens up the possibility for smaller purchases in the future to try and do some DCA. All the best in March and maybe we can actually see a down day in the markets to try and open up some value.
    JC recently posted…10 Option Moves to Boost My Investment IncomeMy Profile

    • Hi JC,

      I’ll be watching VFC and hopefully see it at $50 or below again. If so, I’ll be pulling the trigger. JCI is another solid industrial play that doesn’t seem to garner much attention among our peers. I don’t even recall seeing that stock in other portfolios I follow online. Hope you picked up some LOW. It went wild today as I’m sure you already have seen.

      I share this sentiment exactly, “Almost all of the companies I’d like to add are okay values, but not great values.” I always say, sometimes you have to buy good relative value when the markets are trending higher and higher. There’s nothing really staring me in the face this month but maybe the REITs will get hammered in the near term with a rate hike or a healthy pull back in the general market will give us a little breather from these never ending new highs.

      Keep looking for those good to decent buys. At least now you don’t have to commit as much cash with a lower commission rate. As always, I appreciate your comment.

    • Hi timeinthemarketblog,

      I share your sentiment. VFC bounced back quite nicely form its recent low around $48 while HRL, though down quite a bit, is still higher than it was three months ago which means, I too would like to see it fall a little further before pulling the trigger. We’ll see how March unfolds for these names. Thank you for stopping by and commenting.

    • Hi D4F,

      Like you, I also picked up some VFC not long ago. It was one of my February buys. Nice to see that you have been adding to HRL too. I haven’t read too many buys in that name among our investing peers. Perhaps that current yield is not enough to get some excited. TGT over 4%is like seeing VFC over 3%. Nothing wrong with capturing some great current yield from a stock that is hurting in the near term. Thank you for sharing some of your recent moves.

    • Hi IH,

      HRL kind of came on screen for me as well after reporting some disappointing earnings. Seems like low turkey prices have hurt results for the most recent quarter. Of course, that just translates into a better buying opportunity for us. I just wish the yield was a little juicier for this stock though it’s dividend growth rate is nothing to complain about. Nice pick up of TGT. I know many have been buying that stock in the last couple of days. Who knew such a dividend stalwart of a company could be so volatile. As always, I appreciate your comment.

  3. I like your selection. I own CCP. it’s a great dividend yield and I believe the company will also realize nice gains in the coming years.

    VFC is a great company to. I’m a little worried because they mostly sell through the Retail channel. As a producer I feel they should be able to profit from all the online sales currently happening. If they do that, then I feel like the company has a long and great future.

    I don’t really know Hormel Foods. What is the reason the stock lost so much of it’s value? I wouldn’t expect that with a food stock.
    Pursuit 2 Freedom recently posted…Analysis – Canadian National RailwayMy Profile

    • Hi P2F,

      Not many people care for CCP but I’ll hold on to them for a while. As I mentioned, it came into my portfolio via the VTR spin off and as long as it can continue to pay me dividends I’ll be happy and cautiously add to this REIT.

      Long term, I’m not too worried about VFC nor do I consider them a retailer in the traditional sense. I would suggest that VFC is more of a ‘fashion staple’ type of company that is less sensitive to the fickle nature of consumers or short lived trends. VFC is very different from companies like ANF, URBN, AEO or AROPQ that live and die with the latest trend. VFC products serve both form and more importantly function.

      HRL is a company that owns many popular brands and has been around for well over a century. It’s dividend growth rate and capital appreciation has been stellar for multiple decades and is looking a lot more attractive these days since low turkey prices have been hurting their bottom line. Though a consumer staple food company, HRL still faces commodity price pressures when items they sell, like turkey, goes down in price. Thank you for commenting.

    • Hi ACI,

      The way the market has been trending who knows if I’ll even make any buys from my current considerations, though the REITs might get socked if the Fed actually raises rates soon and that may be a good time to add to my CCP or other names in the space. I’ll be watching VFC and HRL closely. If VFC hits $50 or below that would trigger a buy from me. Thank you for stopping by and sharing your thoughts.

    • Hi MDD,

      HRL seems to be the pick a lot of comments are showing. It’s for good reason as the stock and dividend growth rate have been stellar for multiple decades. It has a respectable yield but I sure wish it was north of 2%. It’s in my favorite sector to invest in as well, consumer staples. Thank you for commenting.

    • Hi DG,

      Like you, I also added to my VFC last month. Seeing it under $50 with that yield well north of 3% was too much for me to ignore. HRL is a stock I have been watching for a while but never pulled the trigger. With low turkey prices hurting the company in the near term the stock seems to have become a lot more attractive. I just wish that yield was north of 2% though. Thanks for commenting and sharing some of your picks.

  4. First time in awhile I don’t have one on your list. In fact, I don’t own any of these nor are they on my radar. I did take advantage of today’s US$ strength to add some BCE for my monthly buy.

    • Hi Charlie,

      Sometimes that happens. I really want to buy many more in the consumer staples space but don’t see anything I like at current levels. Would love to add some KO, UL, CL, CLX, KMB, PG, PM among others but they just seem too pricey in the near term. GIS might come down a bit to a level I’d like. We’ll see. Look forward to seeing where you deploy your fresh capital in March. As always, I appreciate your comment.

    • Hi DD,

      With the market trending the way it is, finding suitable places to invest fresh capital is becoming a lot more difficult. I guess sometimes you have to buy relative value and good yield when things seem overpriced. I’ll be watching how March unfolds and will make a buy somewhere, that’s for sure. Thank you for stopping by and commenting.

    • Hi Brian,

      No doubt HRL is a solid long term play that’s able to adapt and pivot to changing consumer tastes. Kind of reminds of of how MCD has been adapting the last fifty or sixty years. I wish the yield was north of 2% but sometimes a quality name like HRL can pay dividends with a fast dividend growth rate and capital appreciation too. Thank you for sharing your thoughts.

    • Hi TMB,

      VFC came back pretty strong in just the last couple of weeks ever since it hit the $48 range. Like you, I’ll be watching this name to see if $50 or below comes again. In the meantime it will be interesting to see what the market does this month. Thank you for commenting.

    • Hi DK,

      It’s really a great company that is trading at much better levels these days but could still be a little cheaper. Ideally, I’d like to see this stock yielding 2% or more before I buy. We’ll see how the next few weeks play out. Thank you for commenting.

Leave a Comment

CommentLuv badge