Can you believe it? May is is knocking on our door and it’s time, once again, to outline my potential stock picks for the new month. Looking forward I feel compelled to mention some of my recent ‘old favorites’ as well as mentioning some new picks that might deserve a spot in my portfolio too. I’ll get to those in a minute.
Looking back at my some of my purchases last month certain names I did not plan on picking up seemed too tempting to pass up because of a sudden, steep decline in share prices. You know the names, W.W. Grainger, Inc. (GWW), Cardinal Health, Inc. (CAH) and Bemis Company, Inc. (BMS) come to mind. This just goes to show that Mr. Market may always serve up some stock sales that were not anticipated. With that being said, let’s review my May stock considerations.
As I mentioned above, I am continuing to look at some of my ‘old favorites’ as their stock prices still remain low, relatively speaking, and are offering better values and yields when compared to levels seen just a few months ago.
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). Seeing HRL with a yield around 2% and GIS well over 3% continues to entice me. Bemis Company, Inc. (BMS) is another consideration after its big price drop last week.
Now, on to my new potential picks for the month of May.
First, I am considering initiating a new position in QUALCOMM Incorporated (QCOM). Some of you may be surprised at this potential add to my portfolio as it is a tech stock and would be my very first. At current levels QCOM is looking compelling to me with a very juicy yield of 4.24% and a dividend that still appears to have room for current coverage and future growth based on current cash flow figures. The stock is also looking better from a valuation standpoint at current prices and is a name I will definitely be watching in May.
The second new stock I am considering for my portfolio is a low growth utility but still looks compelling from a dividend perspective, PPL Corporation (PPL). As with QCOM, PPL offers a very juicy yield of 4.14% and maintains a sustainable payout ratio while trading at better valuations in recent times.
What do you think about my stock picks going into May? Are any of the names above on your potential buy list too? I would really love to read an opinion about QCOM and PPL specifically and know if they have a spot in your portfolio. Please let me know below.
Disclosure: Long GWW, CAH, JCI, ADNT, HRL, GIS, BMS