November 2019 Stock Considerations

New month… new stock considerations. I can’t believe that November is knocking on our door but here we are… the final stretch of 2019. Seeing how fast time blows by simply reminds me to stay invested no matter how crazy the market seems to be. We have witnessed some pretty harsh declines this year only to be followed by strong rebounds that keeps us flirting with new all time highs. The lesson… stay in the game, stay diversified, keep collecting those dividends. That’s it. We have been hearing rumbles of recession for years which scares a lot of potential new and seasoned investors alike but here we are. Longest bull run ever. Fed printing. Inflation fears. Deflation fears. Unemployment up/down. Student loans ticking time bomb. National deficit. Political nonsense. As I said on many occasions no matter how good or bad the times may be… there will ALWAYS be negative headlines. Turn it off. If there is one thing you can be certain of it’s that no one can predict the future. Period. Market tanks 5,000 tomorrow. Recession begins. Unemployment rises. Dollar collapses. Or… we march on our merry way to DOW 30K. Who knows!?! This is why I make monthly buys consistently. Because I simply don’t know either. Sometimes I guess right and sometimes I guess wrong. So what. I keep on guessing. With that being said let’s take a look at some of my November 2019 stock considerations.

First up in the health/biotech space I’m looking to add to my Gilead Sciences, Inc. (GILD). It was one of my potential picks way back in December and January and was my sole buy in February this year as prices continued to remain weak in 2019 and yields, which are still well covered, are around historical highs just below 4%. Clearly, GILD has been stuck in neutral for about one year but has been able to generate a nice passive income stream in the meantime. One of the perks of dividend investing.

Next, I am looking at Altria Group, Inc. (MO) once again. Though the stock has come back quite nicely from its recent lows I still like the stock under $50. The juicy yield well north of 7% is still covered and while headwinds and questions remain about MO’s vaping exposure I believe that long term, coupled with its cannabis exposure, MO can offset traditional tobacco usage declines.

Finally, I am looking at a stock I bought in October to round out my November picks… McDonald’s Corporation (MCD). This stock has tumbled quite a bit from its recent highs and as long as prices remain under $200 it will be a potential buy next month. With a yield that’s around 2.6% and a moderate payout ratio of about 60% the dividend remains well covered.

So there you have it. My November potential stock buy(s). What do you think about my picks? Are you considering any of these stocks for your own portfolio? Please let me know below.

Disclosure: Long GILD, MO, MCD

17 thoughts on “November 2019 Stock Considerations”

  1. Nice list DH! MCD actually came on my radar again with the recent dip. I have owned MCD since 1993 (I was 6 years old, when my grandfather started an investment account for me). Had spectacular growth in value while collecting dividends all those years. I guess I will see how November goes in making new purchases. Thanks for sharing! 🙂
    My Dividend Dynasty recently posted…Recent Buy – 3M (MMM)My Profile

    • Hi MDD,

      That’s a great story about your MCD stock introduction. I wish every parent/grandparent would introduce stocks to children. Just imagine what kind of real world financial lesson that could give. I’ll wait for an MCD dip again before considering it. I still like MO under $60.

  2. DH –

    MCD was def. a curveball to me! No JNJ? Curious on what you think of them! I think MO has been on your list and each and every month, I know they just took the big $4.5 billion write down on Juul.


    • Hi DD,

      MCD is my effort in trying to diversify my passive income a bit more. As much as I wanted to have equal income from each stock that is far from the case as a handful of stocks provide the bulk of my passive income stream. I’ll wait for an MCD in the low $190s before considering 🙂

  3. Below $50, especially below $45, MO is very tempting and I just might add some more shares in November. I’d like to see MCD come down lower before I add, but that’s largely due to it’s weighting in my portfolio. There’s not much that I’m seeing that I want to commit a big chunk of capital to right now, but for some DCA purchases I think ADP is decent and SJM is looking pretty good too. HSY wouldn’t be bad if it pulls back to the low $140s. I might pick up some more shares of CSCO if the share price dips to the low $46 or lower.
    JC recently posted…Recent Buy (16)My Profile

    • Hi DGJ,

      Thanks for your opinion about these stocks. Even though MO jumped a lot from its recent lows it still looks attractive to me going forward. I guess anything under $60 for MO is my magic number.

  4. Altria is still on my watch list as well. McDonald’s on the other hand is still way too pricey in my mind. I also need to do a deeper dive into the health/biotech space. It’s time consuming to research each company’s product pipeline. Hopefully if you add more positions to your portfolio, they work out. Good luck!

    • Hi Divcome,

      It’s true. The market can be at all time highs, unemployment low, interest rates low, etc. etc. and the headlines will always be negative. Just keep buying and hold for the long haul.

    • Hi Anthony,

      When MO was deep in the dumps a few months ago it was primed for buying. Hope some out there took advantage of that huge yield. Every stock has its risks. No guarantees of anything over the long haul.


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