With the start of a new trading month, it is time, once again, for me to highlight some of my potential stock buys for June. With all the recent market volatility there is no shortage of stocks that are looking seemingly cheaper when compared to the closing months of 2021. No one can argue that 2022 has been a banner year for the markets. This month I have my eye on three potential buys but as we all know Mr. Market can give us fresh buying opportunities at any time and those three potential buys can become four or five. With that being said, let’s take a look at my June stock considerations which are similar to recent considerations from one to three months ago.
First up, I’m taking another look at Starbucks Corporation (SBUX). This stock continues to be a loser in 2022 which may mean a good buying opportunity for those willing to hold on for many years. Feels kind of weird to say that considering SBUX has been a darling for multiple decades. Like all high flying stocks, eventually they come back down to Earth and that’s a good time to nibble on some shares. Shares are looking fairly valued with a PE of around 23 and a yield north of 2.5% with a payout ratio just under 50%. Though share price has been hammered the dividend still appears to be safe. Could be a good month to pick some up.
Next, I am taking a look at Gilead Sciences, Inc. (GILD). This stock had a bad start to 2022 and is seemingly looking undervalued at current prices. With a generous dividend yield of about 4.5% resulting from it’s lower share price this name has caught my eye for April. With a payout ratio just under 80% the current dividend appears to be safe at current levels. A forward PE of around 10 also makes this stock appear to be on sale.
Finally, I’m taking a look at a name that I haven’t touched for several years, Leggett & Platt, Incorporated (LEG). This is another stock that had a rough start to 2022 and is now sporting a yield of around 4.5% as a result of share price decline. With a comfortable payout ratio of about 57% the dividend still appears to be safe going forward.
While these three stocks are on my radar for June, other names (VZ comes to mind) may surely come up at any time. What stocks are you considering in June? Please let me know below.
Disclosure: Long SBUX, GILD, LEG, VZ
Nice picks for June DH! I just bought some more GILD this past week.
I’ll be ready to make new purchases by the end of the month. And VZ is also high on my list. I am also looking at adding more to TROW and possibly a some shares of BEN. A lot can change by the end of the month, so we will see. 🙂
My Dividend Dynasty recently posted…May 2022 Dividend Income plus Recent Buys/Sells
Hi MDD,
GILD and VZ continue to look enticing as prices drop. I have a feeling there’s no need to rush into any stocks for the foreseeable future as prices will continue to drop.
Those seem like solid options DivHut. Of the three stocks you mentioned, I only have SBUX in my portfolio.
I wish I had the ability to take advantage of the volatility of the market. If I did, I would do exactly what you are doing. To be honest, I wouldn’t even know that SBUX itself was down until I read your post – although it’s fair to assume that everything is down right now. I practice dollar cost averaging and so I invest regardless of what the market is doing. But being able to take advantage of the volatility is also a good way to go about it, and the good news is, it doesn’t have to be either or.
Good luck with your purchase, regardless of which one you decide.
Dividend Portfolio recently posted…Dividend Income Report – May 2022
Hi DP,
SBUX continues to stink it up in 2022, but then again, so is the whole market. I’ll continue to do my usual nibble every month and dollar cost average into my positions. It’s nice to see that passive income flow in while everything else seems so shaky. My only concern is that the passive income generated is slowly becoming worthless as the inflation tax hits.
SBUX and LEG both intrigue me, but I never got into GILD. I’ve got a small position in PFE and of course JNJ’s pharma arm. I’ll likely continue to add more SBUX and possibly more MPW and CUBE. BLK looked a lot better when the yield was pushing on 3.3%, but at around 2.9% it seems to be much closer to fairly valued. Some others that I’m contemplating are BTI, MO and MSFT if the cash is just burning a hole in my portfolio’s pocket. I really wish we hadn’t seen that rally over the tail end of May because it sure was nice getting to deploy capital at better valuations, but the market will do what it does. Happy hunting in June!
JC recently posted…Dividend Increase | Lowe’s Companies $LOW #Dividend
Hi JC,
No need to worry about short term bounces in the market… we are still headed lower for a while. No need to rush and buy things. I have a feeling we’ll get much better pricing for many dividend stocks as the weeks flow by. Big names like AAPL and MSFT are around 52 week lows. Besides tech you have SBUX, LEG, MMM and more that are beaten pretty bad. Big name dividend stalwarts on sale! I’ll continue to dollar cost into my positions and bring some cost basis down.