April 2022 Stock Considerations

With the start of a new trading month soon, it is time, once again, for me to highlight some of my potential stock buys for April. With all the recent market volatility there is no shortage of stocks that are looking seemingly cheaper when compared to the closing months of 2021. This month I have my eye on three potential buys but as we all know Mr. Market can give us fresh buying opportunities at any time and those three potential buys can become four or five.

Like last month, I’m taking a look at 3M Company (MMM) once again. This stock has really taken a bath over the last six months or so and is now looking fairly valued. The dividend yield still sits around 4% as a result of the price decline and this accidental high yield is trading at a reasonable PE of just over 14. The forward payout ratio for the dividend is sitting at about 53% making this dividend safe for now. Of course, you cannot dismiss the multi-decade dividend increases this dividend stalwart has given investors nor the potential legal fallout affecting this company in the short to mid term. I still like MMM long term.

Next, I am taking a look at Gilead Sciences, Inc. (GILD). This stock had a bad start to 2022 and is seemingly looking undervalued at current prices. With a generous dividend yield of almost 5% resulting from it’s lower share price this name has caught my eye for April. With a payout ratio under 60% the current dividend appears to be safe at current levels. A forward PE of around 9 also makes this stock appear to be on sale.

Finally, I’m taking a look at a name that I haven’t touched for several years, Leggett & Platt, Incorporated (LEG). This is another stock that had a rough start to 2022 and is now sporting a yield of around 4.5% as a result of share price decline. With a comfortable payout ratio of about 54% the dividend still appears to be safe going forward.

While these three stocks are on my radar for April, other names may surely come up at any time. What stocks are you considering in April? Please let me know below.

Disclosure: Long MMM, GILD, LEG