Headlines, headlines everywhere! September has definitely not been a boring month that’s for sure. The markets continue to gyrate wildly. Oil spikes the most ever in a single day only to retreat sharply. Interest rates being cut. It’s over for Fedex. Vaping… ban!?! Altria at 52 week lows. Inverted yields. Recession coming… no wait… recession not coming. Wait… it is coming. Fed forced to inject billions to stabilize overnight lending rates for banks. Better look to bitcoin for some real stability 🙂
This month, like every other month preceding I am planning to making a buy. Share by share building up my passive income stream dividend by dividend, staying diversified to mitigate any of my stinkers I hold and just watching the world roll by. With that being said, let’s take a look at my September stock considerations.
Like last month, I am looking at Altria Group, Inc. (MO) once again. What can I say… I still like the stock well under $50 and at 52 week lows. The juicy yield now north of 8% is still covered and the negative sentiment around the stock has not abated as vaping bans hit the headlines which still might give those wishing to go long the stock some time to make up their mind and pick up some shares at these very low rates. I believe MO’s entry into the cannabis and vaping space will, in the long run, pay off as traditional tobacco usage continues to decline.
Next, I am looking to add a potential new name to my portfolio, Leggett & Platt, Incorporated (LEG). This company has been around for well over 100 years manufacturing furniture and other related components. This stock has been growing dividends for almost five decades and though this is definitely not a growth stock it does offer a compelling yield well north of 3% with an acceptable payout ratio of 72%. Ever since the stock dropped below $40 it has steadily appeared on my radar. The stock still may be a bit overvalued at current levels especially since its run up from last month but if prices dip below that magic $40 range it will be a consideration for a nibble.
There you have it. A short list for the month of September. What do you think about my stock considerations. Are you buying any of these names too? Please let me know below.
Disclosure: Long MO
9 thoughts on “September 2019 Stock Considerations”
I’m so close to jumping into Altria shares. The 8%+ yield is great and the cashflow is strong. I like the risk-to-reward so much that I might put 10% of my portfolio into the position. I’ll do a full write-up with my investing thesis.
Looks like you took that MO plunge. Happy to be a fellow shareholder with you. I think seeing MO around $40 was too enticing for many to pass up.
MO is definitely looking enticing here that I just might have to pick up some more shares. If it stays around these levels come the next pay date I’ll be adding nearly 2 shares via DRIP. There’s not a whole lot that I’m looking at right now other than maybe JNJ. Of course I don’t have a lot of cash ready to invest so I’m willing to be patient.
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It’s cool to wait and build up that cash reserve. In the meantime, you can sit back and wait to pounce on that stock you have been watching. JNJ is looking interesting to me in October. Perhaps a buy in something other than MO 🙂
Always fun seeing MO on the list, hard to pass on that yield… love LEG too, payout ratio getting higher by a little. Think they can increase earnings??
You already know that MO has been my go to stock for a while now. Sometimes a risk reward profile is too attractive to ignore which is why MO has been my seeming default. I think LEG can grow their earnings but not at any meaningful rate. To me, LEG just looks like a steady passive income generator and not much else. Don’t get me wrong… I like that quality in a stock a lot. Stable, reliable dividends have value to me I just need to see LEG under $40 to consider it.
Nice writeup, divhut. MO certainly looks attractive at these prices and the yield is amazing. What about FDX and JNJ?
MO has been my go to stock for a while but just to diversify out I am looking at other names to consider in October. Funny you mention JNJ as it is on my short list.