I can’t believe it is time, once again, to post my potential stock buy(s) for the upcoming month. Not to sound too cliché, but where has the time gone? Time waits for no one so might as well make the most of it and invest in the stock market and stay invested during the highs and inevitable lows.
Looking back at the last few months of 2018 we have been gifted the opportunities to buy into some very solid dividend paying stocks that for the longest time seemed untouchable. Many great names in the staples, real estate and even health and industrial plays all went on sale offering us more attractive prices, values and more importantly yields across the board. Looking forward to the month of May I have decided to “balance” my dividend income and purchase a stock that is not among my largest holdings. As we all know, it is tempting to average down on positions when given the chance, however, that may lead to excessive buying into a particular stock/sector and eventually you’ll find yourself overweight in certain positions. While I don’t plan to utilize my dividends for quite some time, when I finally do, I do not want to rely on just a handful of stocks for the majority of my income. Ideally, I’d like it to be as equally spread out as possible. We all see our own income inequalities when we report our monthly passive income. More often than not, a handful of stocks generate the bulk of our income and I think that can be dangerous especially when your reliance on dividend income to live will come to pass. With that being said, let’s take a look at my May potential buy(s) from some of the smaller positions in my portfolio.
Starting with the staples I am considering adding to my Colgate-Palmolive Company (CL) and The Clorox Company (CLX). Both of these dividend stalwarts have been hammered in 2018 and are sporting relatively high yields as stock prices declined. Forward PE looks a lot more enticing for CLX at this point.
Sticking with the staples I am also looking to add to The Procter & Gamble Company (PG) and PepsiCo, Inc. (PEP). As with my two earlier picks, PG and PEP both have had a difficult 2018 with lower stock prices driving up yield while bringing PEs back down a bit.
So there you have it. My picks for May. All in the staples space and all relatively small positions in my portfolio I am looking to bulk up and slowly equalize my dividend distributions. What do you think about my potential buy(s)? Are you considering names in the staples sector as well? What do you think about my desire to even out my dividend income among my holdings? Please let me know below.
Disclosure: Long CL, CLX, PG, PEP