May 2019 Stock Considerations

May 02, 2019 3:49 AM ETMO, T, ABBV, GILD7 Comments2 Likes
Divhut profile picture

New month... new stock considerations? Well, I guess if you call picking the same stocks for the last four or five months as new then, yes... these are my "new" stock considerations. Ever since going the DGI route, I don't recall considering the same four or five stocks for several months in a row, but I guess when you see some compelling, juicy yield being served up by some of the most respected dividend stocks, you can't just turn a blind eye. With that being said, let's take a look at my May stock considerations.

First, I am looking at Altria Group, Inc. (MO). Though the stock has come back quite nicely from its recent lows, I still like the stock under $60. The juicy yield well north of 5% is still well-covered and the negative sentiment around the stock has not abated, which still might give those wishing to go long the stock some time to make up their mind and pick up some shares. I believe MO's entry into the cannabis and vaping space will, in the long run, pay off as traditional tobacco usage continues to decline.

Next, I'm thinking about buying more AT&T Inc. (T), especially if stock prices go to $30 or below. T was my sole purchase in November as prices remained depressed and yields got pushed ever higher. Sure, there are a lot of near-term headwinds this company is currently facing, not least of which is its debt load, but the dividend still appears to be quite safe and can reward patient shareholders over the long haul. T still remains less than 1% of my taxable account and much less when compared to all three of my portfolios. In other words, I'm still comfortable adding to my position.

In the health/biotech space I'm looking to add to my Gilead Sciences, Inc. (GILD). It was one of my potential picks for December and January and was my sole buy in February and as prices continued to remain weak in 2019 and yields, which are still well-covered, are around historical highs just below 4%.

Finally, I am looking to buy AbbVie Inc. (ABBV). This was my sole purchase in the month of March and April as I added some shares to my ROTH account. 2019 has been a tough year for the stock, and it is once again trading at levels not seen since October of last year. With a sustainable yield pushing well over 5%, this long-time holding of mine is looking enticing, especially under $80.

What do you think about my potential stock buys for the month of May? Are you considering any of these names for your own portfolio? Please let me know below.

Disclosure: Long T, MO, ABBV, GILD.

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Divhut profile picture
I’m an early 40′s Internet entrepreneur that launched several dot coms with varying success in each. At the very least my living has been made online for the past 18 years and at the most I had a fun time in each venture.I began seriously investing for dividend income around 2007 when my business at the time was literally falling off a cliff, as most of the world was starting too as well, when my need for another income stream became more apparent. I have always known the benefits of dividends from my very first stock purchase back in 1988 but wasn't yet sold on the concept of tying up my money indefinitely purely for a dividend income stream. It was around that time that I learned about Dividend Aristocrats and Dividend Champions when it all just made sense. I could literally see the effects of compounding dividends from these select companies and thought a nice diversified portfolio could provide me with a decent to excellent income stream decades down the road.

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