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