New month… new stock considerations? Well, I guess if you call picking the same stocks for the last two or three months as new then, yes… these are my “new” stock considerations. Ever since going the DGI route I don’t recall considering the same two or three stocks for several months in a row but I guess when you see some compelling, juicy yield being served up by some of the most respected dividend stocks around you can’t just turn a blind eye. With that being said, let’s take a look at my May stock considerations.
First up, I’m taking another look at Starbucks Corporation (SBUX). What a loser of a stock in 2022. 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 20 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 almost 5% resulting from it’s lower share price this name has caught my eye for May. Even though the payout ratio under 80% is on the high side. the current dividend appears to be safe at current levels. A forward PE of around 9 also makes this stock appear to be on sale.
Next, I am looking at Verizon Communications Inc. (VZ) once again. This stock is trading with a low PE of about 9 and sports a very juicy yield of about 5.5% and a moderate payout ratio of around 50% making this dividend appear to be very safe going forward.
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 4.6% as a result of share price decline. With a comfortable payout ratio of about 56% the dividend still appears to be safe going forward.
What do you think about my stock considerations for May? As you can see there are similar names listed here as in April. What are you looking to buy this month? Please let me know below.
Disclosre: Long SBUX, GILD, VZ, LEG
All are great picks DH. I recently purchased VZ in LEG last month. TROW is another stock I bought that is looking even better now to add on to. I just need to wait to replenish my funds.
My Dividend Dynasty recently posted…April 2022 Dividend Income and Springtime
Hi MDD,
There’s no shortage of names that are looking a lot more attractive today when compared to just a few weeks ago. The VZ yield is getting too hard to ignore at current levels. Thanks for sharing your picks.
Thanks for these picks! Verizon Communications Inc at 9 P/E looks awfully attractive.
Nomadic Samuel recently posted…What Kind Of Investor Are You? I’m A Sponge Investor: A Forever Free-Agent
Hi NS,
I agree. Don’t forget about that juicy yield too that still looks safe based on current metrics.
I’ve been nibbling some more on VZ. That yield is just too juicy although the growth probably won’t be that much. I added CMI to the portfolio on Thursday and hope to add more to it if the yield jumps up over 3.0%. Although I’ll probably continue to add a bit more before then. Happy hunting in May!
JC recently posted…Dividend Update – April 2022 #Dividend
Hi JC,
Totally agree. The yield is what first attracted me and looking at the current payout ratio shows the dividend is still safe at current levels. It’s more about money now as opposed to future dividend growth. Thanks for sharing your pick too.