New month… new stock considerations. I can’t believe that November is knocking on our door but here we are… the final stretch of 2019. Seeing how fast time blows by simply reminds me to stay invested no matter how crazy the market seems to be. We have witnessed some pretty harsh declines this year only to be followed by strong rebounds that keeps us flirting with new all time highs. The lesson… stay in the game, stay diversified, keep collecting those dividends. That’s it. We have been hearing rumbles of recession for years which scares a lot of potential new and seasoned investors alike but here we are. Longest bull run ever. Fed printing. Inflation fears. Deflation fears. Unemployment up/down. Student loans ticking time bomb. National deficit. Political nonsense. As I said on many occasions no matter how good or bad the times may be… there will ALWAYS be negative headlines. Turn it off. If there is one thing you can be certain of it’s that no one can predict the future. Period. Market tanks 5,000 tomorrow. Recession begins. Unemployment rises. Dollar collapses. Or… we march on our merry way to DOW 30K. Who knows!?! This is why I make monthly buys consistently. Because I simply don’t know either. Sometimes I guess right and sometimes I guess wrong. So what. I keep on guessing. With that being said let’s take a look at some of my November 2019 stock considerations.
First up in the health/biotech space I’m looking to add to my Gilead Sciences, Inc. (GILD). It was one of my potential picks way back in December and January and was my sole buy in February this year as prices continued to remain weak in 2019 and yields, which are still well covered, are around historical highs just below 4%. Clearly, GILD has been stuck in neutral for about one year but has been able to generate a nice passive income stream in the meantime. One of the perks of dividend investing.
Next, I am looking at Altria Group, Inc. (MO) once again. Though the stock has come back quite nicely from its recent lows I still like the stock under $50. The juicy yield well north of 7% is still covered and while headwinds and questions remain about MO’s vaping exposure I believe that long term, coupled with its cannabis exposure, MO can offset traditional tobacco usage declines.
Finally, I am looking at a stock I bought in October to round out my November picks… McDonald’s Corporation (MCD). This stock has tumbled quite a bit from its recent highs and as long as prices remain under $200 it will be a potential buy next month. With a yield that’s around 2.6% and a moderate payout ratio of about 60% the dividend remains well covered.
So there you have it. My November potential stock buy(s). What do you think about my picks? Are you considering any of these stocks for your own portfolio? Please let me know below.
Disclosure: Long GILD, MO, MCD