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