Lanny's March Stock Watch List

Includes: ADM, PFE
by: Dividend Diplomats

Well, the market hasn't laid on too many opportunities for us, but we still have stocks on our watch list. Nothing too crazy has happened, so this was very tough and easy at the same. Slow and study, or keep it simple stupid, or uhm... you get the drill. This isn't anything wild, but here is the March 2016 stock watch list!

The Criteria for Stocks on my Watch List

As I have posted earlier this month, I haven't purchased an individual stock in well over 30 days. Over the last month, the stock market is up over 6%, and it sucks! As I stated within that post, it's also good timing, as I have quite the expenditure list coming up - not as big as others, but substantial for me. Outside of my normal reinvestment of dividends, as the power of dividend reinvestment is real, followed by my semi-monthly contributions to my 401K (as the match can have a substantial impact on your portfolio). Regardless, we are all in a watch moment right here, for the most part, and the best thing we can do is find the one or two undervalued stocks. If they aren't at the right value that you want, don't buy it if you don't like the price. However, there should be a good balance to your investing approach. The back-and-forth game is unreal to me. I want them to pass my dividend stock screener, as I stated last month in a similar article.

The Stocks

  1. Pfizer (NYSE:PFE) - Still here on this list from last month. The stock has stayed fairly steady and is trading at the 3/29 close at $30.06, still yielding around 4%. No real changes here, except the price is a little higher. Unlike Johnson & Johnson (NYSE:JNJ) (though a glorious foundation stock for a dividend investor) the PFE yield at 4% with a solid 7%+ dividend growth rate currently trumps theirs, which, for JNJ, is over 17 P/E ratio now with a lower than usual 2.75% yield. Ouch. Not going to buy PFE anytime soon, as I'd like to see the stock in the $28-29 range. $1 makes a huge difference! Trust me.
  2. Archer Daniels Midland (NYSE:ADM) - One would have thought, after making a $3,000 plus investment (one of my new favorite strategies and goals) into ADM towards the earlier part of the year/back in January, I would not want to own anymore, since I have contributed a total of $4,725 over my purchases into this company. However, one could almost say - does this Dividend Aristocrat fit the bill on one of Bert's 5 "always buy" stocks he always totes around? Not sure on the exact answer, but ADM shows everyone reason why it should be, with a beautiful below 40% payout ratio, a strong 7%+ dividend growth rate and below a currently calculated 12 P/E ratio - all signs point to... yep this can be undervalued and should be on watch by investors. For those exact reasons, it is on my watch list.

Stock Watch List Summary

And that is all for the watch list. That's it. Two stocks. No others look undervalued even remotely to me at the moment. Aflac (NYSE:AFL) still shows signs of a low P/E and a low payout ratio, but even that price has gone up pretty strongly since my last article. It's frustrating! I may have cash to deploy once more dust settles towards the very end of April, as come May, I'll have the other items more than budgeted for - the bachelor party, the vacation, and the two weddings. Should be, then, very focused on the cash reserve front and more of an exact amount of where I'll be at, as opposed to having more variables than I'd like. I'm happy the market has been like this, in hindsight, as my mind would have burst if there were a plethora of opportunities out there to be picked at. That would have turned my hair grey for sure, no doubt.

To make it short and sweet: two stocks I have my eyes on, and two stocks that I currently own. Both have solid business strategies, payout ratios, dividend growth rates, dividend yields and price-to-earnings ratios. Neither of the two are screaming BUY ME, BUY ME, but are worth keeping an eye on. This is why they call it a watch list and not a "Holy Crap - NEED TO BUY NOW" list, haha.

What do you have on your watch list? I have seen bloggers write about new companies that I never have even heard of. Do you have some of those? Do you have the two I've listed above on your watch list? Do you hate/not like the stocks I have? Reasons to not purchase or to purchase them? Always curious! Thanks again everyone for coming by, sharing your deep thoughts, as well as what you are seeing as March comes to a close. Good luck and stay grinding!