With the market continuing to melt up and make record highs seemingly every day it has become increasingly difficult deciding where to deploy fresh capital. Wait… What?!?! Wow… what a difference a couple trading days make. That used to be the standard line we used almost every month for a very long time. No more, I guess. It seems that we are getting some early Christmas sales in the market and one shouldn’t fret about market dives, rather use this opportunity to buy that stock you have been watching for a while, perhaps average down on a holding already in your portfolio or simply maintain the course and keep investing as you always have. My plan of action is to continue to make my monthly buy(s) and ride out any near term pain. With that being said, let’s take a look at some of my February 2018 stock considerations.
First up, is a name that has not been popular at all in 2017 and so far in 2018 too and continues to struggle in the near term, General Electric Company (GE). I know there is a lot of uncertainty regarding this stock but seeing it priced well into the mid-teens it is becoming more compelling as a lot of the negative news surrounding this company seems to be baked into the current stock price. The recent market dive has really brought GE into fairly valued territory.
Of course, I continue to look at the battered health REITs once again. Last month I added to my Welltower Inc. (HCN) and LTC Properties, Inc. (LTC) and continue to watch those names as well as Ventas, Inc. (VTR) and HCP, Inc. (HCP) too. Rising interest rates and inflation fears have really brought the hammer down on this entire sector and with big price declines comes juicier yields for those with patience to ride out the storm.
I also am looking at the utility sector this month with potential buys in The Southern Company (SO) and Dominion Energy, Inc. (D) being made.
Of course, there are many other names that have suddenly become a lot more attractive. We have witnessed dividend stalwarts like Wells Fargo & Company (WFC) and Johnson & Johnson (JNJ) get dragged through the mud in the recent days. No doubt a lot of sideline money will be seeking some better values, price and yields with this recent decline.
What do you think about my potential stock buys for the month of February? Are you considering any of these names for your own portfolio this month? Please let me know below.
Disclosure: Long GE, HCN, LTC, VTR, HCP, SO, D, WFC, JNJ
31 thoughts on “February 2018 Stock Considerations”
Cash seems to be a good spot while this ongoing correction plays out 🙂
Roadmap2Retire recently posted…Passive Income Update – Jan 2018
It’s always nice to have some cash to take advantage of any dip but I’ll gladly deploy whatever cash I have into dividend paying stocks and buy on these dips. Thank you for commenting.
This market is making tons of value right now. The utilities and REIT sectors are especially are getting hit hard. I am looking at SO, D, or DUK right now. Probably hold off on REITs since I just bought more O. Healthcare stocks are looking good, PG and JNJ come to mind. All good choices.
I think buying at these lows for the health REITs and/or utilities could play out well down the road. There seems to be a real freak out regarding rising interest rates and those sectors are getting hammered the most. Of course, all those companies mentioned have survived and thrived during higher interest rate environments in the past so I’d be willing to buy while there’s “blood in the streets.” As always, I appreciate your comment.
You have all the right thought processes in place DH. I like utilities, and as you say JNJ is getting interesting, but it’s already a large holding of mine. And finally, I missed my chance to exit GE in early January. Got greedy and hung on too long. My tax loss asset just keeps getting bigger, if there is a silver lining that is it. Tom
Tom @ Dividends Diversify recently posted…My Only Regret In Life: Speed To A Million
I still plan on holding my GE for the foreseeable future and would be willing to add to it at current levels. I know many don’t like GE but I’m willing to stick with it for the long haul. The utilities still look like the interesting “safe” sector these days with juicier yields and better pricing too. Thank you for stopping by and commenting.
Nice hut… im really watching pg and jnj…. jnj pe is insane though!
Will be nice watching what moves people make.
Passivecanadianincome recently posted…Loans for Investing?
PG is a name that most are not considering these days. Interesting pick. For now, I’m still watching the health REITs and utilities the most though I wouldn’t mind spreading my buys across other sectors too. Thank you for sharing your thoughts.
I might consider GE. Its taken quite a beating. It is a part of my portfolio and I am hoping to average down a bit. Other stocks I am looking into are WFC, XOM and TXN.
dividendgeek recently posted…International Investing with funds (VGTSX, VEIEX, VDVIX, VFSVX, VFWIX, VXC, VEE)
I’ll admit that GE is not for the faint of heart but it could offer a nice potential rebound given enough time. As long as it continues to pay a dividend I’ll keep holding and maybe even add to it. Thanks for sharing your potential picks.
Great list. I agree on WFC and JNJ lately been lucrative so is XOM. I also like GE SO and D. Lot of common thoughts there. U have been buying utility stocks lately myself.
Happy investing and good luck.
The Dividend Karma recently posted…Recent Buy – January (Part 3)
Seems like most of us are looking at the utility or REIT sectors these days. I have been reading quite a few D and SO buys as well as REIT plays too. i guess interest rate hike fears are really beating down those sectors. Thank you for stopping by and commenting.
I picked up some D today at $73.86. First Utility stock in my portfolio!!
Money Hungry recently posted…Dividend Income January 2018
Nice pick up with D. Congrats on further diversifying your portfolio. For now I just hold D, SO and ED though I have PPL on my watch list too. Utilities are never exciting but over decades they tend to pump out lots of cash to shareholders. Thank you for sharing.
Love the REITs on your list and Dominion. Dominion may be my favorite on what your’re looking at currently, big acquisition they are going through but they have solid financial metrics and a tasteful yield!
You said it best. D seems to be doing all the right things in recent times despite their falling stock price. Of course, the falling stock price is not an indictment on their business rather external interest rate hike fears. I’ll gladly nibble on a better priced, higher yield solid dividend payer like D, though I can’t ignore those health REITs. They are looking juicier everyday. Thank you for commenting.
I have been watching SO too. I would love to strengthen my position. It is already below my cost basis. Thanks for sharing.
More Dividends recently posted…Dividend Increase – Archer Daniels Midland (ADM)
For now the utilities and REITs are catching my eye the most. Of course, I wouldn’t mind looking at other sectors but these days it seems that the best values and yields are hiding out in those places. Thank you for stopping by and commenting.
Lots of options just opened up the past few days. I am probably not dropping any new capital until next month, sadly. I just got D myself. Also APD, Canadian banks (mainly BMO and TD), CAH, DEO, O, SBUX, and WTR are on my list to keep an eye on.
Dividend Gremlin recently posted…January Review / February Review, 2018
All the names you mention look good. Utilities and REITs seem to be hammered down the most which is most likely where I’ll be buying but SBUX kind of came out of nowhere and is looking better too. As you stated, “Lots of options…” As always, I appreciate your comment.
Nice considerations DivHut,
Recently added O, SBUX, AAPL and JNJ myself, and would still consider these a buy right now! But HCN/HCP/VTR look juicy aswell! Personally not so keen of GE as it’s just to risky for me.
Eager to see what February will make you purchase!
DutchIndependence recently posted…Apple: My latest addition
Those are some solid pick ups you made. Congrats on adding to your passive income stream as well. The health REITs are continuing to fall lower and lower. The yields are getting too hard to ignore at these levels. Still haven’t made my monthly buy but it will come. Thank you for sharing your thoughts.
I like the energy plays here. Let’s hope they drop a bit then we can pounce!
Investment Hunting recently posted…It’s Time for a Change
Still have no energy in my portfolio though I have been seeing some energy buys among our dividend investing peers. I’m still looking at the health REITs and utilities for February. I can’t believe how hard the REITs have fallen. Thank you for commenting.
i definitely have a lot of those names you mentioned on my “shopping” list. – REITs look very attractive, but i have to balance my portfolio first (too much REIT exposure right now).
I think about buying Johnson&Johnson if they get pulled down some more due to overall market conditions. And SBUX of course. In the utility sector i own shares of Southern Co and i look to add Dominion or ConED.
Looks like REITs and utilities are still the dragged down sectors of the day. Overall, my REIT exposure is not that large so I would feel comfortable adding to some of my positions. Still like D and SO too!!!
I imagine there has to be a few more names on your list now that the markets have continued their decline. It’s definitely been a much needed and probably the most predicted correction. We’ll see if things really start to get crazy or if this is just a little blip before another leg higher. Of course over the long, long term it’ll probably barely even be noticeable.
JC recently posted…Let’s Get This Party Started | Dividend Update – January 2018
The volatility in recent weeks has been something we have not seen in a long time. No doubt it’s creating many great buying opportunities. The health REITs still look very attractive as they are continuing to make new lows almost every day. We’ll see where I deploy this month. As always, I appreciate your comment.
Awesome Considerations! Personally I will be adding to D, O, PEP, TROW, XOM and WPC. I’ve also been doing a bit of research into VTR and HCN. I’m not sure if I’ll move in one of these directions but it would be nice to pick up one since I just trimmed my OHI position by 70 shares.
I can’t wait to see which purchase you will make.
Looks like some solid picks on your part too. The REITs are continuing to get hammered and the health REITs are making new 52 week lows almost every day. You know what they say about blood in the streets. Still, haven’t made my February buy(s) but it will come. Thank you for commenting.