Saturday, November 8, 2014

Watchlist: November

I plan to add more to my Industrials this month. The market is expensive right now. These are the deals I think are worth looking at. Refer to the watchlist page for graphs of these stocks:

Credit: A
Payout Ratio: 34.8%
Yield: 2.16%
Debt: 32%
Yrs Div Increase: 21!!

Credit: A-
Payout Ratio: 53.9%
Yield: 3.2%
Debt: 57%
Yrs Div Increase: 12

Credit: A
Payout Ratio: 36%
Yield: 2.3%
Debt: 28%
Yrs Div Increase: 10

I think Raytheon is a better value from a historical PE perspective and also the debt. I still like the yield of LMT better though. The payout ratio and debt of LMT is a bit high. UTX I believe offers good value at its current price point. The debt is good and the yield is normal for an industrial stock.

In addition to the above industrial stocks, I am thinking of adding small amounts to the following stocks:

Credit: BBB+
Payout Ratio: ---
Yield: 5.0%
Debt: 45%
Yrs Div Increase: 29!!

Credit: A+
Payout Ratio: 20.1%
Yield: 1.1%
Debt: 27%
Yrs Div Increase: 18

Credit: A+
Payout Ratio: 17.5%
Yield: 0.8%
Debt: 0%
Yrs Div Increase: 7

Credit: A-
Payout Ratio: 32%
Yield: 1.6%
Debt: 47%
Yrs Div Increase: 52!!

I was very impressed with the dividend increase in V. Even with the huge price rise, I believe this stock has a lot of room to still grow. My last Visa buy was at $201 and I was able to get a really good deal. I think that the price right now is fair value to slightly overvalued. The growth is priced into the stock. Visa has no debt and has a strong business model that everyone uses. The moat is real on this one...

HCP offers me a yield I need and I believe it's fair valued at the moment based off FAST graphs. I am watching LOW and TJX on the sidelines. I might consider adding a bit to TJX. TJX has impressive dividend growth and a proven track record.

1 comment:

  1. For my money I like UTX and HCP from the list above. They are both on my watchlist as well. I agree that the market as a whole took a tremendous turn north in terms of value but there are still some great relative bargains to be had in energy and financial stocks. BP, TOT, AFL, CB, WFC, USB, BNS, TD, RY, BMO, CM, etc. Thanks for sharing.