With a new month quickly approaching it is time, once again, to lay out my potential stock picks and decide where I’d like to deploy my fresh capital for the month of September. After a pretty big month of buying in my account for August I may have to throttle back some of my investments for September. Don’t get me wrong, I will be buying something next month as I always have no matter where we are in an economic cycle, market cycle or whatever world events are taking place. Consistency with investing is one of the “rules” I hold myself to as a dividend growth investor. With that being said, let’s take a look at the stocks I am considering for the month of September.
First up is a name I bought several months ago and am considering once again, Johnson Controls International plc (JCI). JCI is a solid long term dividend paying industrial that has been lagging a bit post it’s Adient plc (ADNT) spin off and continues to look very good to me at current levels. The summer has been cruel for JCI as its stock price lost a lot of ground and is now trading a little above its 52 week low.
The summer, especially August, has not been kind to many consumer staples as fear of the Amazon threat grabs all the headlines. Names I am considering in this space include Hormel Foods Corporation (HRL) and General Mills, Inc. (GIS) each trading around their 52 week lows and sport safe relatively high yields. Seeing HRL yielding over 2% is a historically high yield.
Next, I am considering a health sector stock that has also been hammered in August, Cardinal Health, Inc. (CAH). This dividend stalwart continues to pay out a safe dividend with a yield that is also relatively high for this stock. At current prices the stock seems fairly valued.
I’d also like to note some honorable mentions for potential buys in September should I see a dramatic sell off occur as I’m still on the fence about adding to my positions, at this time, in General Electric Company (GE) and W.W. Grainger, Inc. (GWW). Of course, seeing GE yielding close to 4% and GWW well over 3% might entice me to nibble on those names in any case.
What do you think about my potential stock buys for the month of September? As you can see I’m not considering initiating any new positions at this time as I simply want to average down my cost basis on some of my current holdings that appear weaker. Are you considering any of these names for your own portfolio next month? Please let me know below.
Disclosure: Long JCI, ADNT, HRL, GIS, CAH, GE, GWW