January 2020 Stock Considerations

New month, new year. Time, once again, to highlight my potential stock picks for the month of January. As you all know by now, I like to make monthly stock purchases no matter what is going on in the world or markets for that matter. Over time, the worst possible news simply becomes a blip barely registered on a long enough stock chart. With that being said, let’s take a look at my potential stock picks for the month of January.

First up, I’m heading north and considering Royal Bank of Canada (RY). This is one of three Canadian banks I hold in my ROTH account and it has been a long time since I added to any of them. RY, considered one of the ‘big five’ Canadian banks currently sports a yield of 4% with a PE of 12.6 well below the S&P average. Shout out to Lanny at Dividend Diplomats who is also looking north considering Canadian Imperial Bank of Commerce (CM). I guess we both see something of value with the Canadian banks these days.

Next, I am looking at financial/insurance play Aflac Incorporated (AFL). AFL has been a dividend stalwart for many decades and sports a yield just north of 2% with a modest PE of 13.0 looks fairly valued at current levels.

Finally, I’m looking at consumer staples play PepsiCo, Inc. (PEP). Another dividend stalwart, PEP has been paying and raising dividends for decades and looks to be fairly valued at current prices especially when compared to competitor The Coca-Cola Company (KO). With a yield of 2.8% and PE of 15.6 the stock is looking attractive in an otherwise very expensive market.

Of course, Mr. Market always has the last say in what I buy. You never know when we’ll get that buy the dip moment. Also, I’m looking at some potential REITs to add to my IRA after selling several positions towards the end of 2019. What do you think about my current picks? Are you considering any of these names too? Please let me know below.

Disclosure: Long AFL, PEP, KO

15 Comments

  1. What about oil companies BP RDS XOM? Looks quite atractive in value. Energy sector has missed the big 2019 rally.

    1. Hi P2035,

      Fair enough. All do look very attractive as 2019 seemed to totally skip over the entire energy sector. That being said, I would consider any of those names if my BP position wasn’t as massive in my portfolio. Thank you for commenting.

  2. I’m surprised that PEP’s P/E is that low. I just might have to pick up a few shares. Definitely looks like a pretty good value for a defensive name.

    1. Hi JC,

      PEP is still looking pretty good these days along with many other names. Given a choice of PEP or KO I would look at PEP.

  3. Like JC, PEP was a surprise to me. After their stock price has soared, I took them off my radar. But thanks for bringing them to my attention Keith.

    RY is a nie choice and I”m looking at CM right now. It doesn’t seem like you can go wrong with any of the big Canadian Banks since they are all so similar 🙂

    Bert

    1. Hi DD,

      Seems like you can’t go wrong with the Canadian banks even during these tough times. I think PEP still deserves a look among other consumer staples. I’m sure there is still more downside for all of us. My hope for the future is just for the dividends to keep flowing.

  4. Nice picks DH! Already own PEP. Maybe if it comes down a little I would consider adding more. I might consider starting a position in CVX (though I have an inherent caution with energy stocks) or VZ whose ex-dividend is coming up. Like you, for me it will depend on what the market does. Thanks for the post! 🙂

    1. Hi MDD,

      Energy is on sale big time. It will be interesting to see how the majors weather this current storm which is likely to last several months.

    1. Hi DS,

      PEP among other consumer plays are still attractive today. Look for strong balance sheets with extra cash to weather this sudden storm.

  5. Thanks for the inspiration. I thought I missed a train with PEP, but maybe I’ll reconsider.

    Good luck.

    1. Hi Druss,

      The longer you are invested the more you will find out that another train will always come by. It may takes years but eventually you’ll get a good buying opportunity for those seemingly missed chances.

    1. Hi Michael,

      No shortage of good picks these days. PEP among dozens and dozens of other stocks are looking good as well. Just be careful… the market is still in crazy mode.

  6. […] Here we go. My first purchase of 2020. I’m excited to get the ball rolling in the new year and with a few great buying opportunities out there the hardest part seems to be choosing which one or two stocks to add to my growing dividend-centric portfolio each month. We all know the names already that are yielding extra high juicy yields in the telecom, staples, health, finance and tech space as many “buy” posts I read on our fellow DGI blogs seem to be centered around the same core group of stocks. Of course, I’m no different with my own stock considerations for January as I looked in the same pool of names. With that being said and sticking to my January stock considerations: […]

Leave a Reply

Your email address will not be published. Required fields are marked *

CommentLuv badge

This site uses Akismet to reduce spam. Learn how your comment data is processed.