With the start of a new trading month, 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 2022. This month I have my eye on four potential buys but as we all know Mr. Market can give us fresh buying opportunities at any time and those four potential buys can become five or six. With that being said, let’s take a look at my April stock considerations which are similar to recent considerations from one to four months ago.
First up, I am looking at Verizon Communications Inc. (VZ) once again. I nibbled here a bit for the last four or five months and prices are still looking attractive to me. This stock is trading with a low forward PE of just over 7 and sports a very juicy yield getting close to 7% and a moderate payout ratio of around 51% making this dividend appear to be very safe going forward. I realize that this company may not be a growth machine going forward but what it lacks in growth the current yield makes up for.
Next, I am taking a look at another large telco AT&T Inc. (T). While I have been nibbling on VZ a lot over the past several months T has largely remained off my buy list. However, that juicy yield approaching 6% is enticing me once again. With a reasonably low forward PE north of 7 the stock is looking fairly valued in the high teens.
I am also looking at the stock everyone loves to hate Altria Group, Inc. (MO). MO still looks a little rich at current prices but I’ll be waiting for entry points closer to $40. As mentioned, the stock still appears to be expensive with but for those looking to cash in on current yield this stock may be the ticket.
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 2023 and is now sporting a yield of around 5.5% as a result of share price decline. With a comfortable payout ratio of about 76% the dividend still appears to be safe going forward.
What do you think about my stock considerations for April? What are you looking to buy this month? Please let me know below.
Disclosure: Long VZ, T, MO, LEG
I own the first 3 and will add LEG to my watch list. Thanks.
Edward Foster recently posted…Rating the EHR Vendors
Hi EF,
Appreciate the comment. These are all low growth but high yield plays. That’s the trade off.
So, a few more ideas for you and your readers.
What about Costco (COST), and Sturn, Ruger and Co. (RGR)? They’re both super profitable companies and have attracted a lot of investor interest.
Hi JCH,
Thanks for sharing some of your picks. I looked at RGR many years ago. Maybe time to revisit that name.
Hi! I have compared VZ and T on 5 yr, 10 yr and 20 year return and those are negligible compare to benchmarks.
Wanted to see your viewpoint why you keep that in your portfolio if return is very minimal?
Hi vip,
Holding T and VZ is purely for current, relatively high yield. These two stocks are not in the portfolio for capital appreciation. Hope this helps.