Time for another monthly examination of the dividend Portfolio. Periodic reviews are necessary in order to determine if I can improve it.
A couple of my financial stocks have been doing very well this past month: TROW and BLK. In the healthcare sector, JNJ has been rising this past month. Great to see these climb!
As for what’s not working… Utility SCANA (SCG) is still dealing with the aftermath of a failed nuclear investment, and may be dealing with it for some time. SCG is my only utility stock, as I’m not a big fan of the utilities in general. For now, I’m holding tight, waiting for it to find a bottom. I’ll continue to monitor SCG.
I’m still on lookout for a Information Technology investment. I’m happy with the size of my existing positions in this sector, so I’m looking outside the portfolio for a candidate. CSCO is still a name I’m watching. I’d like to initiate a position in Texas Instruments (TXN), but not sure the price is right at this time… more research to do.
As for adding to my existing positions, CAH is still on my radar, it actually dipped during the past month and has recovered a bit. It got below the $65 mark that triggered additional interest for me, but I wasn’t prepared to act. We’ll see if it drops to that level again. I also like HRL at its current level ($30). That’s below where I made my last purchase in late August, so making an additional investment is a possibility.
One new stock I’m considering at this time is The Cheesecake Factory (CAKE). They’ve stumbled a bit this year, but there could be opportunity there. I like their controlled growth approach, and the fact that they have no debt. I think they can deliver 10% earnings growth. They have a 2.6% yield, and a 31% payout ratio – so there’s room for dividend growth, too. The current price of $43.50 is acceptable, but I’d like even more in the $40-$41 range.
With my recent GWW sale, I have some cash to deploy. I’m hoping to find something to invest in before year’s end, as I’d like to reach the $7,200 mark in annual forward dividend income for the portfolio, which would result in a nice $600 monthly average – a nice starting point for 2018.
I’ll continue to look for good companies whose stock is trading at an acceptable price. Even with the market at all-time highs, I know there are values out there… I just need to find them.
What are you thinking of doing with your portfolio these days? Any trades planned that might shake things up? Do you have any thoughts on any of the names I mentioned here? If so, please share. ‘Til next time…