Here we are, entering the final quarter of 2016. It kind of scares me to write that as I look back at the last nine months of the year and wonder at how fast it all flew by. Baby DivHut celebrated his first birthday earlier this year, we took a nice long road trip in the summer up the west coast visiting three states, and as fall starts to make itself felt with each passing week, I can already anticipate the sun setting on 2016. Of course, as we all try and make the most of every day by working hard for others or for ourselves we all share the common goal of generating an ever increasing passive income stream via dividends, options, rental properties, blog income and more. With a new month upon us it’s time, once again, for me to look at my portfolio holdings and watch lists and figure out where I’d like to deploy my fresh capital in October.
Looking back at the month of September, I had made eight separate buys in seven different companies which included two new names added to my portfolio. Those stocks included newcomers Cardinal Health, Inc. (CAH) and T. Rowe Price Group, Inc. (TROW) and old favorites, General Mills, Inc. (GIS), The Coca-Cola Company (KO), McDonald’s Corp. (MCD), V.F. Corporation (VFC) and Wells Fargo & Company (WFC). Though each of my buys could be considered nibbles at best, as each buy was on the small side, collectively I put $2,381.27 to work in my taxable account for the month. Not a bad total to help continue pumping dividends my way. Looking ahead, I would like to continue to put fresh capital to work in some of my smaller holdings to further even out my dividend income stream.
The first name I am considering for an October buy is Johnson Controls International plc (JCI). This is an old name in my portfolio that has been with me since 2007 and with a recent merger completed last month (more on that in my next dividend income report) with Tyco International plc (TYC) I am looking add some shares to the newly formed company. JCI is a company divided into three distinct segments including HVAC and building efficiencies, battery technology and automotive interiors. As a result of the merger with TYC, JCI will combine its HVAC and building efficiencies and battery technology units with TYC and jettison its automotive interiors segment as a spin off called Adient (ADNT). For the most part I love stock spin offs as it tends to unlock value in both the parent and child company over time. To date, I have kept every spin off in my portfolio.
Another consideration of mine in October is to continue to nibble on T. Rowe Price Group, Inc. (TROW). Valuations and yields for this stock continue to look attractive in an otherwise expensive market. In the same financial vein, I am also considering an American bank that has been quite popular among the DGI community as of late, but not in the media, Wells Fargo & Company (WFC). This stock continues to get dragged down which only offers us better buying opportunities and higher yields.
Of course, I usually end these “considerations” posts with the caveat that Mr. Market makes all the rules and names that are not mentioned above may suddenly become attractive to accumulate. I still would like to add to my consumer staples and health sector stocks but am having trouble finding any decent value at this time.
What are some of the stocks you are considering for your October purchases? Are any of the above names on your monthly watch list? Please let me know below.
Disclosure: Long CAH, TROW, GIS, KO, MCD, VFC, WFC, JCI.