After a very strong July and August, it looks like panic is setting in as we start September with a nice swoon. No worries… as dividend growth investors, we can't focus on the near term as daily, weekly, and monthly price fluctuations and sentiment are nearly impossible to gauge. All we can do is look for solid companies with good fundamentals that have the ability to navigate and adapt to current economic situations. With that being said, let's take a look at my September stock considerations.
First up in the health/biotech space, I'm looking to add to my Gilead Sciences, Inc. (GILD). It was one of my potential picks way back in December 2018 and January 2019 and was my sole buy in February last year as prices continued to remain weak and yields, which are still well covered, are around historical highs just above 4%. Clearly, GILD has been stuck in neutral for about a year and half but has been able to generate a nice passive income stream in the meantime. One of the perks of dividend investing.
Next, I am looking at financial/insurance play Aflac Incorporated (AFL). AFL has been a dividend stalwart for many decades and sports a yield just north of 3% and a low payout ratio of 27.50%, along with a low forward PE of 8.24 and looks fairly undervalued at current levels.
Like last month, I am looking at Altria Group, Inc. (MO) once again. What can I say… I still like the stock well under $45. The juicy yield around 8% is still covered, and the negative sentiment around the stock has not abated. 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.
Another stock I am
