With a new month upon us, it is time once again, to chart a road map of potential stock buys for August. While these posts are informal suggestions I make for myself, I tend to follow my stock considerations quite closely. The way I see it, I have already done my homework when deciding where to deploy my fresh capital so why not follow this road map? Of course, the one big caveat is Mr. Market’s temperament, as new buying opportunities can present themselves at any time.
As I sit here writing this post while on the road (currently in Seattle) I am reminded of how fortunate I am to be able to spend this quality time with my family and share new experiences together. After all, life is a lot more than just collecting dividends, right? Getting back to the matter at hand, let’s take a look at my August stock considerations.
Once again, the market is at all time highs and the familiar gripe of every dividend investor is the same, lack of attractively valued companies. While I concur wholeheartedly with this assessment, I still find it important to continually invest in the stock market at least once a month. Consistency with ones investment is as important as what one decides to buy. By being consistent with your buys you essentially cease becoming a market timer and are an investor. That being said, as before, I am considering The Bank of Nova Scotia (BNS), The Toronto-Dominion Bank (TD) and Royal Bank of Canada (RY). All three of these banks are offering up yields around 4%. In today’s low rate environment those payouts are huge. In the same financial vein, I am also considering an American bank that has been quite popular among the DGI community as of late, Wells Fargo & Company (WFC). Finally, in the financial space I am considering initiating a new position in The Travelers Companies, Inc. (TRV). It’s been a long time since I added a new stock to any of my portfolios and with TRV’s yield of around 2.8%, low payout ratio of 28.4% and a PE of 11.2 which is in line with its five year average, this insurer suddenly looks like a decent buy. Other names I’m considering include, W.W. Grainger, Inc. (GWW) and V.F. Corporation (VFC) as well. Both names were on my July considerations list too.
What do you think about my potential stock picks for August? Are any of the above names on your monthly watch list? Please let me know below and I welcome any suggestions too.
Disclosure: Long BNS, TD, RY, WFC, GWW, VFC