It's been a while since I've posted a watch list. I've wanted to do so, but there's been little market value lately. Aside from financial and energy stocks, I don't see much that I want to buy. There are twelve stocks on my watch list that are at or near my strike price. I have 60 stocks on my watch list. These twelve have risen to the top, or they are close to my strike price.
April Watch List
Wells Fargo Bank (NYSE:WFC)
Wells Fargo is arguably the best U.S. bank. I own 25 shares of WFC. I'd like to get my share total to 100 shares. Wells Fargo has seen a 13.67% price drop YTD.
- P/E Ratio: 11.67
- Dividend Yield: 3.16%
- 5-Year Dividend Growth Rate (CAGR): 49.1%
U.S. Bancorp (NYSE:USB)
U.S. Bank is not regularly seen as a dividend investor holding. I suspect this is because 2009 crushed this bank. However, dividends have increased consistently over the past 5 years and the bank's annual dividend yield is over 2.5%. U.S. Bank's stock price is down 8.37% YTD. I don't own any U.S. Bank shares.
- P/E Ratio: 12.67
- Dividend Yield: 2.55%
- 5-Year Dividend Growth Rate (CAGR): 38.2%
I bought Qualcomm a few months ago on the dip. My cost basis per share is $48.59. The stock is trading today at $50.40, which leaves this stock price flat YTD. I won't add shares unless the price dips below my cost basis. However, the current price is not bad.
- P/E Ratio: 16.76
- Dividend Yield: 3.83%
- 5-Year Dividend Growth Rate (CAGR): 20.1%
Johnson Controls (NYSE:JCI)
Johnson controls has been on a roller coaster YTD. Its stock is down 4.20% this year. It's on a slight climb now, but watch list worthy. On the next dip, I'll likely add shares.
- P/E Ratio: 17.80
- Dividend Yield: 3.05%
- 5-Year Dividend Growth Rate (CAGR): 14.9%
American Express (NYSE:AXP)
American Express is down 15.37% YTD. Now that Costco (NASDAQ:COST) has finally started moving over to Visa (NYSE:V), we could see an AXP price dip after financial reporting. If the stock dips, I'll consider buying shares.
- P/E Ratio: 11.90
- Dividend Yield: 1.93%
- 5-Year Dividend Growth Rate (CAGR): 9.4%
Discover Financial Services (NYSE:DFS)
I've had DFS on my watch list for a long time. I've stayed away due to low yield. However, yield is now over 2%, and the stock is down 6.27% YTD. DFS has made a strong commitment to investors with consistent dividend increases the past few years. I'll consider buying shares if the price dips a few dollars.
- P/E Ratio: 10.0
- Dividend Yield: 2.19%
- 5-Year Dividend Growth Rate (CAGR): 39.2%
Ameriprise Financial (NYSE:AMP)
I bought shares of Ameriprise earlier this year for $83.91 per share. The stock has surged slightly, but it's still volatile. I'll consider buying more if the price falls below my cost basis. The stock is down 14.45% YTD.
- P/E Ratio: 11.0
- Dividend Yield: 2.87%
- 5-Year Dividend Growth Rate (CAGR): 29.5%
CSX Corporation (NYSE:CSX)
CSX stock is down 5.13% YTD. It was way down earlier in the year, but rebounded lately. If the market cools down, I'll consider adding shares.
- P/E Ratio: 12.44
- Dividend Yield: 2.9%
- 5-Year Dividend Growth Rate (CAGR): 16.5%
Union Pacific Corporation (NYSE:UNP)
I've bought shares of UNP twice the past 6-months. UNP's stock price is even for the year, but it's susceptible to dips, especially while the energy sector is up in the air. I'll add more UNP on a dip. My current cost basis per share is $71.03. I've made good income selling UNP options this year. Without options income, my cost basis is $79.32. UNP stock closed today at $78.00. UNP is in the buy zone for me.
- P/E Ratio: 14.27
- Dividend Yield: 2.81%
- 5-Year Dividend Growth Rate (CAGR): 27.4%
General Dynamics (NYSE:GD)
I don't own General Dynamics stock, but it's been on my watch list for a while. GD stock is down 4.35% YTD. With terrorism uncertainty, defense stocks could see big gains later this year. I'm just watching this stock now, but if new contracts are signed, I may buy some shares.
- P/E Ratio: 14.50
- Dividend Yield: 2.31%
- 5-Year Dividend Growth Rate (CAGR): 10.4%
T. Rowe Price (NASDAQ:TROW)
TROW stock price is even YTD. But this stock has been on a roller coaster. The stock price dipped down to $63.57 in January. I think there will be more dips this year. I own 61 shares at a share cost basis of $77.35. Today's close at $71.48 would be a good way for me to lower my cost basis. However, I'm watching and waiting. I like this stock at a price below $69.
- P/E Ratio: 15.73
- Dividend Yield: 2.94%
- 5-Year Dividend Growth Rate (CAGR): 14.0%
Principal Financial Group (NYSE:PFG)
PFG stock is down 13.98% YTD. The company has strong financials and now its dividend yield is close to 4%. I bought 100 shares of PFG in January. My cost basis is $36.93 per share. I'm not planning on adding more shares, but I wanted to share this with all of you in case you're interested in buying PFG.
- P/E Ratio: 9.73
- Dividend Yield: 3.85%
- 5-Year Dividend Growth Rate (CAGR): 22.2%
Watch List Takeaways
These twelve stocks make up my April 2016 watch list. I don't intend to buy all of these stocks in the near future, but I wanted to share the list as I think these stocks are attractive now. Some are in the buy zone now, while others are volatile and could be buys if the market dips. If I do buy this month, I'll likely be buying UNP, TROW, WFC, or QCOM.
Full Disclosure: Long WFC, QCOM, AMP, UNP, TROW, PFG.