Mid October Picks

Hey everyone.

Well its that time of the month again. The middle. I have racked just over 1000$ usd and am looking at making another purchase. Currently I don’t see anything getting me excited in the Canadian Market so will just be sitting on some cash in the tfsa for the time being.

I think I am going to make this a monthly post so we will look over my past picks from the previous month and see how they are doing. The market keeps on going so maybe its easy to pick any stock and watch it go up. Previous Picks Post.

Previous Picks

In September I was watching the following stocks.

Highliner Foods (HLF – TSX)

September 18th the stock was trading at $13.45 per share. It currently trades at $13.98 up 3.94%. I bought this one.

Algonquin Power (AQN – TSX)

September 18th the stock traded at $12.95 per share. As of today its at $13.61 up 5.09%. I didn’t buy this, unfortunately I thought it might of went down more after the interest rate hike.

Intertape Polymer Group (ITP – TSX)

September 18th you could of gotten this for $18.04 today you gotta pay $18.97. Up 5.15%. I’m still debating this one.

L Brands ( LB – NYSE)

It traded for 39.86 back then. It now trades hands for $41.85. Up 4.99%. I still like this stock but the market has created a better us stock buying opportunity in my opinion. See below

Genuine Parts Co ( GPC – NYSE)

A dividend king. It used to go for $86.86 per share.  The market saw this deal and ate it up. Currently GPC go’s for $95.50. A cool %9.94 gain in less than a month.

October Picks

I’m starting to feel pretty good about my stock picks, the market is definitely high at the moment but if you look and read a bit there tends to always be a deal out there. Which brings me to my 2 picks for October.

Yet again the amazon effect has created another fantastic buying opportunity. Recently there has been talks yet again that amazon will start selling pharmaceutical drugs. I think they could but this might be a tricky one. How can you prove who you are indeed shipping the drugs too? Anyways big pharma stocks have pulled back pretty nicely on the news.

Luck would have it, The health care sector is my lowest sector at the moment! The sector cant be held down with just senior housing. I need some drugs! Certain us health care stocks keep flirting with 52 week highs. cough cough Johnston and Johnston…… I ain’t paying top dollar, I’m Dutch =) Give me a deal.

The Picks

Walgreens Boots Alliance – (WBA – Nasdaq)

The Company operates through three segments: Retail Pharmacy USA, Retail Pharmacy International and Pharmaceutical Wholesale. Walgreens has raised its dividend consistently since 1976. It is currently sitting 12 cents higher than its 52 week low @ 68.92 per share. The stock was around 81$ mid September. It also offers a great 2.32% yield at the moment with a p/e ratio of 17.6. The 10 yr dividend growth rate is 17.80% per year. Morning star gives it a fair value of $73 per share.

CVS Health Corp – (CVS – NYSE)

It operates through three segments: Pharmacy Services, Retail/LTC and Corporate. CVS is sitting 4.60 over their 52 week low at 73.90 per share. The have also boosted their dividend for the last 14 years. Not as long as Walgreen’s but their 10 year dividend growth rate sits at 27% a year. Woot! Oh man is that nice….. Currently it offers a yield of 2.71% and a p/e ratio of 14.9. Morning star gives CVS a fair value of $109 per share.

Conclusion

I feel both stocks offer a great entry point. Walgreens is 20 bucks below their 52 week high and CVS is only 15 below theirs. I will most likely be starting a position in CVS in the next couple days. I like the higher yield, lower p/e ratio and their massive dividend growth rate. CVS ex dividend date is also coming up soon (October 23) and they pay their dividends in February, May, August and November. While this is minor detail, I need to even out my quarterly months hahaha. I don’t want just huge dividend months in March, June, September and December.

What are your thoughts? Which one would you choose and why? Any other stocks you are watching?

Cheers!

Rob

Hey I’m Rob, creator of Passive Canadian Income.

In 2011 me and my wife had almost $60,000 in debt and a negative $7,000 Net Worth. Through hard work and financial education we paid all that off. Now we are focusing on increasing our Passive Income Streams to make the money work for us. Feel Free to Follow along the Journey by clicking the Social Media links below or subscribing to get notified of new posts on the sidebar.