As 2015 is rapidly moving along another new month is upon us which brings my portfolio back into focus as I look forward towards my March potential stock buys. Looking back at February my potential picks exclusively rested on the large Canadian banks as continued weakness in share price and more attractive valuations along with juicer yields put The Toronto-Dominion Bank (TD), The Bank of Nova Scotia (BNS) and Royal Bank of Canada (RY) at the forefront of my potential buys along with Bank of Montreal (BMO) and Canadian Imperial Bank of Commerce (CM). March is looking no different as I am continuing to look at the large Canadian banks as potential investments while potentially allowing myself to average down on my purchase prices in one or more of those names.
Along with the large Canadian banks other names have cropped up on my radar as well as recent weakness has potentially made some of these names interesting too.
First up is Caterpillar Inc. (CAT). A long time holding of mine in both my brokerage account and ROTH, CAT currently yields a healthy 3.40% with a current PE of 14.4 which is well below its five year average and below industry peers as well. No doubt, recent share price weakness is making this name a lot more attractive than in months past.
Another name I’m considering is Johnson & Johnson (JNJ). Like CAT, JNJ has been with me since the beginning and is currently yielding a decent 2.70% with a current PE of 17.6 which is slightly below its five year average. Forward PE for JNJ looks a lot more enticing at just 15.8. Recent weakness in share price has made JNJ a popular pick among many of the dividend bloggers as well, as the $100 mark piqued the interest of many long term investors, myself included.
In general, I would like to boost my health sector allocation as it still represents a smaller portion of my portfolio especially when compared to my consumer staples and industrial names. Companies that I’d like to boost investment in include CR Bard Inc. (BCR), Becton, Dickinson and Company (BDX) and Abbott Laboratories (ABT) just not at current share price/valuations. For now, JNJ seems like my best bet to boost my health sector exposure.
Of course, I always qualify these posts with the notion that Mr. Market may have other plans for my portfolio and new potential investments may crop up that are not included here.
What do you think about my March stock considerations? Are any of the names mentioned on your watch list or in your portfolio? Please let me know below.
Disclosure: Long TD, BNS, RY, CAT, JNJ, BCR, BDX, ABT