May 2019 Stock Considerations

New month… new stock considerations? Well, I guess if you call picking the same stocks for the last four or five months as new then, yes… these are my “new” stock considerations. Ever since going the DGI route I don’t recall considering the same four or five stocks for several months in a row but I guess when you see some compelling, juicy yield being served up by some of the most respected dividend stocks you can’t just turn a blind eye. With that being said, let’s take a look at my May stock considerations.

First, I am looking at Altria Group, Inc. (MO). Though the stock has come back quite nicely from its recent lows I still like the stock under $60. The juicy yield well north of 5% is still well covered and the negative sentiment around the stock has not abated which still might give those wishing to go long the stock some time to make up their mind and pick up some shares. I believe MO’s entry into the cannabis and vaping space will, in the long run, pay off as traditional tobacco usage continues to decline.

Next, I’m thinking about buying more AT&T Inc. (T), especially if stock prices go to $30 or below. T was my sole purchase in November as prices remained depressed and yields got pushed ever higher. Sure, there are a lot of near term headwinds this company is currently facing, not least of which is its debt load, but, the dividend still appears to be quite safe and can reward patient shareholders over the long haul. T still remains less than 1% of my taxable account and much less when compared to all three of my portfolios. In other words, I’m still comfortable adding to my position.

In the health/biotech space I’m looking to add to my Gilead Sciences, Inc. (GILD). It was one of my potential picks for December and January and was my sole buy in February and as prices continued to remain weak in 2019 and yields, which are still well covered, are around historical highs just below 4%.

Finally, I am looking to buy AbbVie Inc. (ABBV). This was my sole purchase in the month of March and April as I added some shares to my ROTH account. 2019 has been a tough year for the stock and it is once again trading at levels not seen since October of last year. With a sustainable yield pushing well over 5% this long time holding of mine is looking enticing, especially under $80.

What do you think about my potential stock buys for the month of May? Are you considering any of these names for your own portfolio? Please let me know below.

Disclosure: Long T, MO, ABBV, GILD

21 thoughts on “May 2019 Stock Considerations

  1. Thanks for sharing your picks, DivHut.

    GILD looks pretty beaten down and hasnt moved much lately…hard to tell what their next growth story will be. On one hand, kudos to the company that solved and found a real cure for a disease, but alas as investors — that is viewed negatively due to lost future revenue.

    R2R

    • Hi R2R,

      It’s funny how health/biotech works. Go find a cure for a disease, we’ll celebrate… Oh wait… no more income from that disease. GILD needs another high profile acquisition. Something to move the needle. The dividend is still well covered and yielding close to 4% is something that I notice.

    • Hi MDD,

      Happy to be a fellow ABBV shareholder. It’s been with me since the ABT spin off and I just held on. I like it long term along with other health names. Thanks for commenting.

    • Hi DD,

      Never really looked into OXY though WRK started to garner my attention as I read more and more about it. For some reason, I feel more like IP than WRK.

  2. ABBV is still towards the top of my buy list… but I’m in no rush to jump in. CVS is another top contender. I know you’ve seen CVS show up a few times in other comments. Shares jumped 5% on earnings today but the valuation is still attractive. It might be worth looking into.

    • Hi FF,

      Health has had a tough time in 2019 and many solid stocks are starting to go on sale. I like ABBV under $80 and now JNJ is starting to look interesting as well. Thank you for commenting.

  3. Good companies and all are on my radar, especially ABBV and T. I’m less than 10% in the red for these ones. So I would happily average down. Great yields and great prospects.

    I’m not that into GILD. I’m still building my position in ABBV. Too much exposure in this business sector feels a bit risky.

    Will come back to find out which stock(s) you bought. 👍
    dividendcompounder recently posted…The Snowball Keeps Rolling – April 2019 Dividend Growth of 92% YoY $$$My Profile

    • Hi dividendcompounder,

      I’m about to post my May buys and I still like ABBV under $80. It’s already a large chunk of my portfolio but seems like a good bet for the long haul. Of course, there are no shortages of picks as the May sell off progresses.

    • Hi Divcome,

      It’s been a long time since MMM has fallen to these levels. I see it being circulated among many of our DGI peers and that yield is starting to look very enticing. Of course, with the May sell off we have many other choices too.

    • Hi DD,

      Health, among other sectors have been pretty battered in 2019. I still like GILD long term and with a yield close to 4% it’s something to consider. With the market tanking in May it seems like we’ll have many choices to invest.

  4. Keith,

    So many good choices out there, honestly. Just because the market is riding high, doesn’t mean all companies are valued so richly. I would think that of the CCC list, a huge number of them are undervalued with many being historically so like T.

    – Gremlin

    • Hi DG,

      Look at the market these days. No shortage of high quality well covered dividends to choose from. I think these are the days many of us have been waiting for. Pick wisely and for the long haul.

    • Hi desidividend,

      These days there are no shortages of high yielding names to choose from as the market continues to head lower. Pick your sector and you can find some real gems.

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