Headlines, headlines everywhere! August has definitely not been a boring month that’s for sure. Gold and silver and bitcoin continue to march higher. The Oracle dips his toe into gold mining. More vapor money to be created. Apple and Tesla rocking along. Kodak gone but not forgotten. You get the point. Craziness will always make the headlines as sensationalism always gets the views. Meanwhile, I will continue to make my monthly buys at market highs and market lows, dollar cost averaging into all my positions.
This month, like every other month preceding I am planning on making a buy. Share by share building up my passive income stream dividend by dividend, staying diversified to mitigate any of my stinkers (BP, GE, KHC, WFC, YUMC, KTB, to name a few) I hold and just watching the world roll by. With that being said, let’s take a look at my August stock considerations.
Like last month, I am looking at Altria Group, Inc. (MO) once again. What can I say… I still like the stock well under $45. The juicy yield north of 8% is still covered and the negative sentiment around the stock has not abated. I believe MO’s entry into the cannabis and vaping space will, in the long run, pay off as traditional tobacco usage continues to decline.
Next I am looking at adding to my LyondellBasell Industries N.V. (LYB). With a very generous yield north of 6% and a well covered dividend (moderate payout ratio of 69%) this industrial play is still trading at close to fair value with a forward PE of 14.7.
Another stock I am looking to buy is The Southern Company (SO). While admittedly a bit expensive at current levels it does sport a nice yield that is covered (payout ratio of 82% which is not unusual for a utility) and offers a lot of stability that a utility is known for and a decent forward PE of 17.4.
Finally, I am looking at Broadcom Inc. (AVGO) as I am still looking to boost my tech exposure which is still a small part of my overall portfolio. With AVGO yielding close to 4% the stock seems to be trading at decent value with a forward PE of 13.5 even though the stock is near all time highs.
There you have it. A short list for the month of August. What do you think about my stock considerations? Are you buying any of these names too? Please let me know below.
Disclosure: Long MO, LYB, SO, AVGO