Sunday, March 22, 2015

Watchlist April targets

I am targeting purchases in April that will add dividend income in the coming May. I do not see obvious bargains at this point in time so I will focus on my dividend paying stocks in May. I have already recently topped off my allocation in MO and PM so this coming April will see a healthy increase in dividend payments.

I have filtered the US Dividend Champions list to companies that will be paying in May and will have ex-dividend in the coming weeks. These companies all have decent dividend yields and have grown dividends for a long time. Below is a low of May paying dividend stocks. I do not go over my picks just yet but these are just listed with their yields for now as points of interest.

T - 5.66%
VZ - 4.44%
Both have very high yields and strong cash flow and moats. Dividend growth on these guys is abysmal, but Verizon I feel will outpace AT&T in dividends growth. AT&T however sports a much higher yield.

EPD - 4.60%
MMP - 3.52%
PAA - 5.70%
KMI - 4.27%
EPD and PAA are getting hit by the fall in oil prices. These two will probably be more fair value buys than KMI and MMP right now.

PG - 3.04%
Currency issues makes me want to avoid PG for now unless the PE drops and the yield goes over 3.5%.

CAT - 3.45%
Again, currency issues and the fact that the oil sector is getting hurt. The yield is attractive and the PE is decent.

HCP - 5.33%
I think HCP is at fair value right now despite the possibility of a future rate hike. HCP is a dividend champion with many years under its belt. The yield is attractive at this point in my opinion.

FAST - 2.65%
Fastenal has had very impressive returns (dividends and share price growth) and has always had a very high PE. The PE right now is experiencing contraction and is lower than the historical PE. Who knows, perhaps FAST is experiencing PE contraction despite having successful earnings. I am worried about buying this stock because the PE is above my usual criteria despite the growth potential and decent yield.

These stocks I am not interested in adding to my portfolio at the moment:

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