Here we are, approaching the end of June in about a week, and with that half of 2016 will be in the books. I know, I know… where does the time go? Just experiencing the weeks and months fly by always reminds me to do what I have always been doing… continually invest, at least once a month, in high quality dividend growth stocks. After all, time is the one commodity that is truly finite and we must take advantage of as much compounding and dividend growth by having our money work for us “in the market” and not sit on the sidelines. Of course, the challenge of putting our money to work these days is trying to find the best values and yields when the market and most stocks seem priced on the higher end of the spectrum. Being a dividend growth investor, though, I am less concerned about current price and look more at current yield, dividend growth and dividend sustainability aka payout ratios based on current cash flows. With that being said, let’s that a look at my recent June stock purchase:
I have added to my taxable account 13.3206 shares at $60.06 for a total investment of $800.00 in AbbVie Inc. (ABBV). With this recent purchase my taxable account holdings in ABBV now totals 105.3284 shares for a value of $6,318.65.
With a current generous yield of 3.80% and a moderate payout ratio of 47.8% and a relatively low PE of 18.0 which is well below other pharmaceutical dividend stocks like MRK, PFE, NVS, AZN and the like, ABBV offers a decent risk/reward at current levels. Of course, I realize that the pharmaceutical sector is more volatile than others I traditionally like such as the consumer staples, but it does fill a need in my portfolio as I am also looking to increase my health sector allocations.
What do you think about my recent buy? Is ABBV or another stock on your June watch list? Please let me know below.
Disclosure: Long ABBV