Finding bargains in the market today has become an ever increasing challenge as the months have been rolling by and the market as a whole kept marching to all time highs as well. With that being said, I find that several stocks in the financial sector, despite being near or at all time highs, still present the best relative values when compared to many other S&P sectors such as consumer staples. Of course there are always exceptions within every sector.
In my recent post, “September Stock Considerations” I outlined my continued affinity towards the financial sector and my recent new investments in The Bank of Nova Scotia (BNS),The Toronto-Dominion Bank (TD) and Royal Bank of Canada (RY) along with additions to my current financial holdings in AFLAC Inc. (AFL), The Chubb Corporation (CB) and Wells Fargo & Company (WFC). I also noted in another post, “Dividend Portfolio Sector Allocation” how I was generally still light in the financial sector as it only accounted for about 10% of my taxable account and ROTH account and how I wished to increase my exposure there.
With that being said I added 17 shares at $60.58 for a total investment of $1,029.86 in AFLAC Inc. (AFL).
AFL is currently my largest holding in my portfolio and with three decades of dividend increases under its belt along with a decent yield of 2.50%, low payout ratio of 23.8% and low PE of just 9.39 relative to its 5 year average, I anticipate lots of room for future, generous dividend increases.
Other stocks that continue to be on my September consideration list are McDonald’s Corp. (MCD), General Electric Company (NYSE: GE), Kraft Foods Group, Inc. (NasdaqGS: KRFT) and potentially new holding me Unilever plc (UL). We’ll see how the rest of the month continues to play out.
What do you think about my recent stock purchase of AFL? Please let me know below.
Disclosure: Long TD, BNS, RY, AFL, CB, WFC, KRFT, MCD, GE