With a new trading month already in full swing it is time, once again, to highlight some of my potential stock purchases. With the market still having a tough time in 2023 we see no shortages of stocks that are becoming fairly valued to undervalued and boasting higher yields. The reality of the day is that we’ll continue to see stock prices continue to come down as interest rates rise. No reason to believe interest rates will stop climbing anytime soon. Of course, the silver lining amid the market collapse is that every new dollar put to work today in dividend stocks comes with an automatic higher yield when compared to just a few months ago. This month, I continue to look at some of the same names in months past. Of course, we all know that the market can swing wildly and new opportunities may come up that I’m not currently considering today. With that being said let’s take a look at my June 2023 stock considerations.
No surprise here, I am looking at Verizon Communications Inc. (VZ) once again. I nibbled here a bit for the last four or five months and prices are still looking attractive to me. This stock is trading with a low forward PE of just around 7 and sports a very juicy yield north of 7% and a moderate payout ratio of around 50% making this dividend appear to be very safe going forward. I realize that this company may not be a growth machine going forward but what it lacks in growth the current yield makes up for.
And just like last month, I am taking a look at another large telco AT&T Inc. (T). While I have been nibbling on VZ a lot over the past several months T has largely remained off my buy list. However, that juicy yield north of 7% is enticing me once again. With a reasonably low forward PE around 6 the stock is looking fairly valued in the mid to high teens.
Next, I am considering adding to my small position of UGI Corporation (UGI). With a forward PE around 8 and a yield north of 5%, this stock, like VZ and T, might not deliver amazing capital appreciation but can bolster your passive income stream with relatively high yield. UGI has really crashed in 2023 offering us better buying opportunities.
Finally, I am taking a look at GSK plc (GSK). This stock seems to be trading at fair value with a forward PE around 9. The yield is also relatively high well north of 4% and also appears to be safe based on its moderate payout ratio of around 56%.
What do you think about my stock considerations for June? Clearly, I’m sticking with a lot of similar names for several months in a row now. What are you looking to buy this month? Please let me know below.
Disclosure: Long VZ, T, UGI, GSK
Good considerations DivHut. I stuck with T even after their dividend cut. I’m hoping it was the right decision but time will tell. They had been a reliable dividend payer until the cut and I’m hoping they will continue to be reliable in the future. I took the same approach with PFE.
I hope your stock considerations all work out.
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Hi DP,
I know the telcos have been dogs for a while. T and VZ seem to be doing a whole lot of nothing but those yields still appear to be safe and are sky high. Those stocks are for yield junkies 🙂 UGI seems like my bet for the month. They have been solid for a long time and recently took a dump and sporting some good yield.