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Bert's March Dividend Stock Watch List

Mar. 01, 2018 9:29 AM ETMO, PEP, O18 Comments
Dividend Diplomats profile picture
Dividend Diplomats

A new month is upon us, and I am eager to continue to buy stocks that make sense and add to my portfolio. 2018 has been off to a crazy start, and I've thoroughly enjoyed following the madness of the stock market and eagerly awaiting these crazy dividend increase announcements. The dividend growth engine has been strong post tax reform, that is for sure. Today, I found three companies that have caught my eye. I will be watching these three dividend stocks closely. Here is my March Dividend Stock watch list!

Dividend Stock #1 - Altria Group (MO) - Now that the large tobacco company has a yield above 4% once again, the company has shot onto my radar. With an ex-dividend date that should be in the middle of March, I still would potentially have several weeks to initiate a position before missing the April dividend. The company is down 10% during the year, and I am really starting to like the current valuation levels. Its forward P/E ratio of (~16.1X at the time I am writing this article) is currently below both the market and its rival Philip Morris (PM).

The company also has a solid track record of increasing its dividend. Like so many other companies during the year, I am expecting a double-digit percent increase for MO. Management aims for a target 80% payout ratio, and currently, the company's dividend payout ratio is in the mid-60% range. This has left a lot of room for dividend growth in the coming year, which is why I am expecting great things in the current pro-dividend growth environment. After seeming off-limits for such a long time due to its valuation, I am very excited about the prospect of finally initiating a position in Altria.

Dividend Stock #2 - PepsiCo, Inc. (

This article was written by

Dividend Diplomats profile picture
Two guys who love Investing, Dividends, Frugality, Passive Income & attempting to Reinvest Our Dividends to one day achieve Financial Freedom! Follow us on your journey towards a work-free life! We share EVERY ASPECT of our journey on our blog, social media, and YouTube Channel. Make sure to follow us so you don't miss an update. Updates include the stocks we are watching, buying, selling, and our overall thoughts about the the marketBlog: http://www.dividenddiplomats.comYouTube Channel: www.youtube.com/dividenddiplomatsTwitter: https://twitter.com/DvdndDiplomats

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Comments (18)

Initiated position in PEP at 107.70 recently
MO & PM are not competitors. They were the same corporation not long ago. At the split, MO took domestic operations & PM took the international side of the house. They do not compete.
I told a friend who came to me often asking what to buy. On many occasions I said to buy the dip at 93. Did he? NO !
Buy the dip. This is going back up.
I have all three.
Yup ! And all three are good holdings !
Michal.Holik profile picture
These three are my top3 largest positions. Added recently.
I agree, these three are top picks!
Small 6% MO divi increase today? Anyone know most? Most expecting much more
MO has not given out a double digit (10%) Dividend Increase in my recent memory of MO. I think in a really good year they increase by 8.8-8.9%. A 6% Increase may seem smaller than normal, BUT, they may have plans as to where to redirect the Capital in relation to Product Development or Capital Investment. They have a reason for not increasing beyond what they consider “sustainable”. Actually, buying MO today at $62.50 to $62.90 would be a great entry price for a new Investor who may have been watching MO for an entry point. Even though I am an “Old” investor in MO, I just purchased shares this morning on the Dip from 3 days of Drops on the DOW and testimony by FED Chair Powell to Congress.
Michal.Holik profile picture
There is always a probability that they will increase again, in standard time (08/2018)
Dividend Latitude profile picture
Drip It,

MO increases the dividend annually in the 3rd quarter. Today's raise was a "bonus" raise. Expect another, larger raise in August.

MO management targets a higher payout ratio than what they have currently, as Bert mentioned in his article.
01 Mar. 2018
PEP agree, or look at ABBV
m1chael profile picture
Initiated position in O at $49, and MCY at $41.50
I bought Pepsi a few years ago at 114 just saving a little money and waiting for a drop to 108 to add more. I bought Mo at 62. A few years ago if it drops to 60 I’ll buy more.
Gould Capital profile picture
PEP would be my pick of the three.
Pennywise The Dancing Clown profile picture
Agreed. I avoid tobacco and REITs for the most part.
I've been eye balling MO as well. The high payout ratio is kind of concerning to me though.
auto44 profile picture
The high payout ratio keeps the wolves from the door. What wolves>. States attorneys general, litigation attorneys, and anyone else who would like to sue for using a. product they have been warned not to use since I was a kid, many decades ago. Stockholders get the money before they get a shot at it.
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