With a new trading month already in full swing it is time, once again, to highlight some of my potential stock purchases. 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 (though recent odds are placing rates hikes at a pause). Of course, the silver lining amid any 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. With that being said, let’s take a look at my potential stock buys for September 2023.
Like last month, I am considering adding to my small position of UGI Corporation (UGI). With a forward PE around 7.5 and a yield close to 6%, this stock, 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 and looks quite undervalued at current prices.
Finally, I’m taking a look at Leggett & Platt, Incorporated (LEG). This is another stock that had a rough start to 2023 and is now sporting a yield well north of 6% as a result of share price decline. With an excessive payout ratio around 100% the dividend appears to be on shaky ground going forward and it is very clear that it is not recession and inflation resistant. Earnings are suffering in 2023 but it may be a good time to nibble on some shares while things look less certain.
What do you think about my stock considerations for September? 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 UGI, LEG
Hey man, thanks for stocks, always good to know of other possible good dividend stocks. I did have a question for ya, what do you think about these? I added more into these stocks and wondered what you thought about them. MPLX, MPW, QYLD, JEPQ
Hi David,
Not financial advice but, I used to own MPW a long time ago in my retirement account. I do like the medical REIT sector for the long haul but as interest rates rise many REITs suffer as their borrowing costs go up. Of course, other factors are in play too but REITs are known to be interest rate sensitive. The other tickers I’m not familiar with. It appears that you are chasing high yield though. Long term dividend investors would rather chase a growing dividend instead of just yield. Look at the actual cash paid on a monthly or quarterly basis going back many years for a stock and see how those payments fared. Did they rise each time or were adjusted higher or lower?
Hello, I understand and yes, I am going for high yield. However, I do have “safe” dividend stocks to keep my portfolio safe. So far, those stocks seem to be doing very well, except for MPW. MPW had a scare last month about removing their dividends so I’ve been watching them closely. The others have been paying me pretty well so I plan to hold for a while.
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Sounds good. As long as you are content with your mix of high yield (riskier) dividend stocks and more traditional payers it’s all good. Personal finance is no ‘one size fits all’ game.