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

10 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.


  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.

  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

  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

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