September 2019 – Stock Watch list

September 2019 – Stock Watch list

Hey Everyone

Another day another dollar. The market keeps doing it’s thing. Up and Downs, meanwhile the dividend’s continue to pour in.

Some people say the market is overvalued, but there is a tonne of cheap stocks out there. Unfortunately I don’t keep much cash on hand for pullbacks as I prefer to be fully invested. I stick to my monthly budget for investments and continue to buy something each month.

These are the stocks I’m really interested at the moment. 3 U.S stocks and 2 Canadian.

I’m From Canada Eh?

Got to love the Canadian stocks, great for our Resp account and TFSA account. Also no currency conversion!

Bce – Bell canada

First on the list is good ole Bell Canada. Earlier this year we started a position with them in our kids resp account. Currently we have 40 shares and would need 80 to enable the stock to drip… That’s truly what it’s all about, getting that stock to invest in itself. We still need to contribute $2,335 to both our kids resp to max this account for the year.

Unfortunately BCE has had a nice run and keeps setting new 52 week highs. Of course this is a drawback with the rest of the watch list at great values. On the plus side the government recently tossed us 200 bucks as part of the 20% match.

  • P/E – 19.48 x
  • 52 Week High 63.53 – Current Price 63.30 – .23 cents off 52 week high
  • Div Yield – 5.01%
  • Div Streak – 10 years
  • 5 yr Div Growth Rate – 5.3
  •  Moat – Narrow

With the communication sector being my 2nd second smallest sector, the government match and end of the year approaching this may be my next buy. I’d love to get this one to drip for us.




SU – Suncor

If there is one sector that is beaten down right now, the energy sector would be it. While I’m a huge believer in renewable energy and electric cars, I think there is still a place for oil and the transition away from it will take awhile. Let’s be honest, these governments are exactly pushing us away from traditional energy.

Suncor is kinda a double edge sword for me. On one hand I hate the oil sands, from an environmentalist point of view they are horrible. I have invested quite a bit into renewable’s for this reason, but on  the other side of the coin is the fact that suncor takes a lot of money from me.

Me and the wife commute to work about 20-40 minutes a day each, and then run around for the kids activity’s etc. So we tend to fill up once or twice a week. Considering we live by “the cheap” gas stations, Petro Canada is the closest and with that linked rbc card deal it’s a no brainer.

  • P/E – 10.89 x
  • 52 Week High 52.92 – Current Price – 39.10 – $13.82 off 52 week high
  • Div Yield – 4.38%
  • Div Streak – 16 years
  • 5 yr Div Growth Rate – 14.6
  • Moat – None

I love to buy stocks that I do a lot of business with and other than the house, suncor may be the runner up for regular expenses.

U.S Stocks

Time to grab that passport and cross the border. Just like black Friday, there’s some deals to be had there.

JNJ – Johnson & Johnson

A stock that needs no introduction. Everyone has heard of it! This is a core position for so many of you and one I have wanted to get into for a long time. You know what? The price is right, Billy madison was wrong.

Under 130 for JNJ gets me a little excited… Sure they got some pending lawsuits and that’s why the stock is at these levels. JNJ has some great lawyers though. They fight the courts, get a judgment to pay pennies to what could of been and then say that’s too much still.

  • P/E – 21.36x but I think the forward p/e is like 15 x
  • 52 Week High 148.99 – Current Price – 128.86 – $20.13 off 52 week high
  • Div Yield – 2.96%
  • Div Streak – 56 years
  • 5 yr Div Growth Rate – 6.40
  • Moat – Wide

Sometimes you get a fever even more cowbell can’t fix. Tylenol may though……

LYB – LyondellBasell Industries NV

This was a company I didn’t know much about but started hearing more and more about it from the finance community in general. LyondellBasell is the world’s eighth-largest chemical producer by chemical sales. Pretty impressive! Its also in the basic materials sector in which I lack completely….

Although it’s not actually a us stock, (Its from the nethetlands) lyb does trade on the us stock exchange. The stock price is beaten and their yield is juicy.

  • P/E – 8.15
  • 52 Week High 113.24 – Current Price – 77.60 – $‭35.64‬ off 52 week high
  • Div Yield – 5.43
  • Div Streak – 7 years
  • 5 yr Div Growth Rate – 5.91
  • Moat ——

Someone on the facebook Dividend Growth Investing group posted a copy of the insider and larger shareholder purchases of more than 500k since August 28th and some guy named Al bought over 56 million bucks in shares of lyb in the last week. Crazy, but clearly Al thinks its a deal at these prices. haha

In case your wondering  (I was) 56 million in Lyb would generate 3,040,799.99 dollars in dividends each year……..

Close my site now, find Al and copy what that guy is doing. Man is he ever killing it! =)

#WhoIsAl?




Dis – Disney

Disney, Disney, Disney!

Should I even write more? Disney stream is coming November 12th and it’s gonna be massive. No question we are getting it. Give me their movies and access to sports through espn. Only question is will we keep netflix too? wife wants to and I like their documentary’s but if disney busts out. See ya netflix!

There is going to be some big costs as they implement this and this may drive down the price, but if the subscriber numbers are fantastic (as i think they will be) Disney is going to run and run. Kids exposed to all their shows will improve park attendance more and merchandise will fly off the shelves. Reminds me of paw patrol, man my kids can be spoiled some times…

Sure their dividend is low and it will probably boost its dividend slightly the next couple years as they integrate this, but then bammmm! Obviously this is more of a growth play. We currently own 20 shares and would like to pump this up.

  • P/E – 17.88
  • 52 Week High 147.15 – Current Price – 137.89 – $9.26 off 52 week high
  • Div Yield – 1.28
  • Div Streak – 2 years (switched to bi annually payments)3
  • 5 yr Div Growth Rate – 21
  • Moat – Wide

 

September 2019 – Stock Watch list End

Well that is our watch list for this month. Don’t let all the noise deter you from investing, there are still quite a few deals out there. Also with the lack of interest bearing options out there for investors dividend’s seem to be all the rage now.

Which one out of these 5 would you pick? Chase the yield? Go for the Moats? Or you going for something special that I don’t know about? Let me know

Cheers Everyone

Rob

*Most Market numbers came from yahoo finance*




18 Responses

  1. Good list there. Some of those are on my watchlist too.

    BCE – looking to add more. Not many 5% yielders left in the market with yields crashing
    JNJ – everyones running scared with how far the litigations can go from other states/countries + revenue drop expected this year…Ive been nibbling on this one.
    LYB – never heard of this one. The “NV” suggests its European? Watch out for dividend withholding taxes if its EU based.
    DIS – I dont own it, but it keeps popping up on some of the screeners Im running. Looks relatively well priced compared to some insane rev multiples placed on other companies.

    Looking forward to which ones you add.

    cheers
    R2R
    Roadmap2Retire recently posted…Passive Income Update – Aug 2019My Profile

    • Rob says:

      hey Road

      So true about bce, hopefully it pulls back under 63.. Arg lol

      Yeah LYB is from the Netherlands, there would be withholding taxes. I was debating if the recent price action and yield would make it worthwhile though.

      Great points about jnj. Even Canada is going after drug prices. Id like to start a position before they clear these lawsuits and the prices run up.

      Disney is one of those stocks that I really love to hold.

      Appreciate the comment road
      cheers!

  2. May says:

    Never heard of LYB. After looking it up, it’s not an US stock. I think maybe perfect for TFSA USD account? Thanks for your list, now it’s on my watch list too. I had hold DEO for quite a while, sold too early.

    Almost pulled trigger on SU. Did you look at CNQ? It’s very cheap right now.

    By the way, do you convert CAD to USD to buy US stocks? It’s very hard for me to convert CAD to USD at this point.

    • Rob says:

      hey May yeah Lyb is a stock from the Netherlands. There would be withholding taxes on it, but I’ve been debating if the price currently would be worth that consequence and sell it later. Generally I’m a buy and hold guy, so its a little outside my general investment thesis.

      Cnq is very cheap true, but I like how I do a lot of business with suncor and also how they are a lot more diversified in the space. Got to love all those petro canada assets.

      Yeah I convert. While it does suck, I don’t see our dollar improving anytime soon. Also I try to justify it by thinking of all the us dollars coming into the usd rrsp from dividends. As you know the us market really offers more sector diversification too, so we kind of need to be invested over there.

      Always love your input May, thanks
      cheers

  3. PCI –

    Loving the watch list and… YOU CANNOT GO WRONG MY FRIEND!

    Out of all of them, Suncor seems VERY promising and if you don’t have much exposure to Chemical – LYB or EMN may be a good play there for you.

    Pumped to see what moves you end up making, would love DIS myself.

    -Lanny

    • Rob says:

      hey Lanny

      emn is another interesting play and also doesn’t come with the withholding tax consequences.
      suncor seems to be the favorite this month

      cheers man

  4. Joseph Schevenels says:

    HI
    Interesting, LYB the insider buying is AI investment holdings .
    Added to my position in SU last week ,integrated producer ,with all the gas stations across Canada it is
    a win-win situation ,even if the price of oil is lower ,excellent dividend grower .
    Regards Joseph

    • Rob says:

      hey Joseph

      Welcome also love readers comments and their knowledge. Thanks for pointing out that Ai is a holding company. I was thinking it may be something like that.

      Definitely like the fact suncor has all those petro Canada’s

      cheers!

  5. German says:

    Nice list of stocks to buy! Since you’re with Virgin mobile (BELL) and gas up at petro canada (SUNCOR), then you definitely need to own these two stocks. So when you pay for these services, you’re basically paying yourself 🙂 It will take a while for electric cars to take over so the oil business is here to stay. Oil demand is still growing. From 2014 to 2019, the oil demand grew from 93 million barrels per day to 98mb/d and will continue to grow by 1mb/d for the next 5 years. That’s my forecast. Good luck with stock picks!

    • Rob says:

      hey German

      so true. I plan on eventually holding them both. Great stats on oil, didn’t know that. Although I think Europe usage is declining. Here in north america our cars keep getting bigger and all guys need a truck……. I’ll enjoy my civic. Civ nation!
      cheers man

  6. jimmbboe says:

    Have all but SU and LYB. Started Disney position with the Marvel buyout and loving it!

  7. Nice list, PCI.
    Out of all of them, I like JNJ the most. And now it looks like the market is offering a rare opportunity to grab it at a fantastic 3% yield. Doesn’t happen so often. JNJ is my biggest position already, otherwise I would not hasitate to add more.
    -SF
    Snugfortune recently posted…Dividend Income – August 2019My Profile

  8. Mr. Robot says:

    So which renewable stocks do you already have? I love investing green myself so always looking for more. 🙂

    Love me some more DIS myself.

  9. Paul N says:

    I’m just curious about Suncor being on this list. Even back in 2007 the share price was briefly higher than pricing in this month Sept 2019. So for 12 years, is just getting the quarterly dividend (now 4%) worth holding this stock for over that time? Just trying to understand the logic. It would have been better to just purchase more Emera, or even an ETF like XEI and take the 5% dividend (monthly distribution) and utilize the cash from it.

    • Rob says:

      hey Paul

      great points, but if you look at the energy sector in general everything is down.

      As for the dividend you forgot about its growth.

      I don’t have the exact number of what your yield on cost would be from 5 years ago but it would be quite a higher than 4% as they have been pretty generous with those dividend raises!

      cheers and thanks for the comment always love hearing others thoughts.

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