July 2022 Stock Considerations

After a wild first half of 2022 we seem to be trending fairly level in recent weeks. Of course, anyone in the DGI space already knows that these daily, weekly and monthly swings really don’t matter to anyone with a very long term time horizon. All we can do in the meantime is watch the market swing, stay in the game, find and take advantage of those good deals when they come and enjoy the monthly dividends we receive. Looking at the month of July I am sticking with many of the same potential picks I had back in April and May as prices are still relatively depressed for these stocks. With that being said, let’s take a look at my July stock considerations.

First up, I’m taking a look at 3M Company (MMM). This stock has really taken a bath over the last six months or so and is now looking fairly valued. The dividend yield has jumped to well over 4.5% as a result of the price decline and this accidental high yield is trading at a reasonable forward PE of just over 12. The forward payout ratio for the dividend is sitting at about 62% making this dividend safe for now. Of course, you cannot dismiss the multi-decade dividend increases this dividend stalwart has given investors. I know MMM is facing many legal issues but the recent price declines is making the stock look a lot more fairly valued.

Next, I’m taking another look at Starbucks Corporation (SBUX). This stock continues to be a loser in 2022, though had a nice bounce recently, which may mean a good buying opportunity for those willing to hold on for many years. Shares are looking fairly valued with a PE of around 22 and a yield around 2.5% with a payout ratio just at 50%. Though share price has been hammered the dividend still appears to be safe. Could be a good month to pick some up.

A short and sweet list for July. What do you think about my potential stock buys for the month of July? Are you considering any of these names for your own portfolio? Please let me know below.

Disclosure: Long MMM, SBUX

10 thoughts on “July 2022 Stock Considerations”

    • Hi MDD,

      When the market drops we should all celebrate our ability to “lock in some nice yield.” That’s the silver lining of price drops. Nice pick ups.

  1. Once I transfer the cash over to my brokerage it will probably go to some combination of MDT, BLK, CMI as of now. MO is very tempting as well down here in the low $40s. Same with SBUX <$80. Hoping to see another drift down in share prices before I move the money over.
    JC recently posted…Danaher: A Much-Needed Pullback $DHRMy Profile

    • Hi JC,

      MO and SBUX still look good to me even after their recent price climb. I’m always looking to nibble and average down if I can. Interesting picks you mention. I like MDT.

    • Hi passivecanadianincome,

      No doubt the legal clouds are thick with regard to MMM. I guess that’s why I’m considering the stock still. I remember legal clouds surrounding MO and JNJ too at one time. Sometimes certain companies can weather ugly lawsuits. In the meantime, the price/value continues to look compelling.


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