September 2019 – Stock Watch list
September 2019 – Stock Watch list
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?
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.
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! =)
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
*Most Market numbers came from yahoo finance*
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.