With the recent market gyrations from all time highs last month many new buying opportunities have presented themselves to dividend growth investors. Favorites of the dividend blogging community pointed to renewed interest in McDonald’s Corp. (MCD), AFLAC Inc. (AFL), Deere & Company (DE) and several energy plays as well as these stocks and oil have all fallen from all time highs giving these companies more attractive valuations than in months past.
If you have been following DivHut for a while now you know my affinity towards the financial sector as I believe in the current climate many of the companies in that sector appear to be fairly valued while offering decent current yield and future growth prospects. My recent trades over the past few months have seen me add shares to several financial names in my portfolio such as AFLAC Inc. (AFL), The Chubb Corporation (CB), Wells Fargo & Company (WFC) and General Electric Company (GE) prior to its divesting of Synchrony Financial (SYF).
Then, several weeks ago I wrote about Canadian stocks that have paid dividends for over 100 years and had my eyes opened to a whole new financial sector, the Canadian banking stocks. I found it interesting that all the “century club” dividend stocks in Canada are banks. Coincidence? Or perhaps more validation that the financial sector, through all its woes is still very robust and presents the best value overall in the market today.
Sticking to my August Stock Considerations blog post:
I have added to my ROTH account 14 shares at $65.87 for a total investment of $922.18 in The Bank of Nova Scotia (BNS). Currently yielding a generous 3.60% with a moderate payout ratio of 51.2% this stock has paid a dividend every year since 1832. A low valuation financial stock with a current PE of 13.44, BNS is a relatively cheap stock in todays mixed priced market.
I have added to my ROTH account $51.83 for a total investment of $881.11 in The Toronto-Dominion Bank (TD). TD has paid a dividend every year since 1857 and currently yields a favorable 3.40% with a payout ratio of 47.5%. Having a slightly higher PE than BNS, TD is still far less than its peers and the S&P at only 14.98.shares at
Finally, I have added to my ROTH account $72.76 for a total investment of $873.12 in Royal Bank of Canada (RY). RY currently offers a 3.80% yield with a payout ratio of 51.4%. Paying out dividends since 1870, RY has a current PE of 13.67 also putting it below many of its peers and the S&P.shares at
The above purchases reflect new holdings to my ROTH account. What do you think about my August stock buys? Is the financial sector an area you are looking to invest in this month as well? Please let me know below.
Disclosure: Long MCD, AFL, CB, WFC, GE, TD, RY, BNS