Jun 27, 2015

Shopping List for July 2015

The month is about to change soon, and that means it's time to buy some stocks again. I will list my ideas for July here. I will probably end up buying most of them, but not all. The ex-dates for July dividends are pretty much past already, so the focus will be on securing August dividends.

For every stock I will write a desired purchase price. Meaning that I will be willing to pull the trigger at that price, or below. If I feel that a stock is overvalued, then I hope that I can get a small discount compared to the current price. Respectively, if I feel that a company is fairly- or undervalued I have no problem to pay current price, or even a bit more. But this is far from exact science. What also affects is how badly I want to buy that specific stock right now.

Of course July will begin very soon and I'm going to start buying from day 1. Therefore I can't expect big fluctuations in stock prices at this period, one way or other. Anyways, let's see what I have on my shopping list.


CAD
Company: Royal Bank of Canada (RY.TO)
Current Price: 78.26
Desired Purchase Price: 79.00
This would be a new position for me. According to my new diversification plan I transfer my Canadian holdings from NYSE to TSE. But during this process I decided to change one of my bank stocks. So, basically, I'm going to switch from BMO to RY. When I read articles about Canadian banks, I see very consistently the TOP 3 to be: Royal Bank, ScotiaBank and Toronto-Dominion. Just the order varies. I'm not willing to do any extraordinary movement here. Currently I own only BNS, so logically I will purchase RY or TD. Since BMO paid dividend during second month of a quarter and I don't want a gap created there, my choice is RY.

Company: Enbridge Inc. (ENB.TO)
Current Price: 59.23
Desired Purchase Price: 59.00
This would be a new position for me. Energy, oil, gas, pipelines. The company isn't doing badly in its core business. But why I actually became interested in the company, is its renewable energy portfolio. Let's get back to that if/when I will be able to add this to my own portfolio. But since RY will be "mandatory" purchase in July, I will see if I have CAD for this one. 

USD
Company: Omega Healthcare Investors, Inc (OHI)
Current Price: 34.92
Desired Purchase Price: 36.00
This would be a new position for me. Many REITs are stumbling in 52-week low prices mostly due to rate hike fears. I already have decent chunk of REITs in my portfolio, but in this situation I feel that I must buy something again. One good idea might be average down my HCP shares, but that ManorCare issue there is turning me to open new position at OHI instead. The yield is generous. Almost scary high would I say. But if everything goes well, this would give a nice boost to my month II dividends.

Company: ONEOK Inc. (OKE)
Current Price: 39.92
Desired Purchase Price: 39.50
This would add to my existing position. Energy sector as a whole hasn't received much love from investors lately, and this gas-focused company is no exception. The price is well below my average cost, and I feel that I should take advantage of it. I'm looking to make a tiny addition here, perhaps just a couple of shares.

Company: Norfolk Southern Corporation (NSC)
Current Price: 88.87
Desired Purchase Price: 89.50
This would add to my existing position. The same could be said about railroads what I just said about energy sector. NSC is my entry to railroads from the beginning of June, and a month later I'm looking to average down my cost basis. 

Company: The Procter & Gamble Company (PG)
Current Price: 79.34
Desired Purchase Price: 78.50
This would add to my existing position. This branded consumer product giant is currently struggling with growth, and it's share price has come down from 52-week high of $93. Still it doesn't look particularly cheap. But since I have a chance to average down company which has raised dividend for 59 consecutive years, I'm interested at least.

Company: AT&T, Inc. (T)
Current Price: 36.12
Desired Purchase Price: 35.00
This would add to my existing position. Good ol' T is usually very steady stock, but now it took a small jump after couple of upgrades at a bad time. Bad time because I was just about to buy:-) The situation has changed from averaging down to averaging up. I must do some pondering here what price I'm willing to pay.

Well, there you go! I may end up buying something even outside of this list. We'll see how it goes. So many ideas, so little capital is the problem for us all. Or perhaps not all, but almost:) I'm looking at one sale too, which would be PGH. The company has 50% dividend cut under its belt, and I think that there are better options in Canada's energy and utility sectors. Like that Enbridge for example.

Do you have plans ready for July? Or still going to make some movements during last days of June?

Disclosure: Long OKE, NSC, PG, T.


9 comments:

  1. Ive been eyeing T lately too. Im struggling with pulling the trigger because the high payout ratio and the weak EPS for the year. 2.50-2.80 for the next several years. Chart looks good and the upgrades as you stated. Even with all this, i still want to buy but dont know why. lol.

    Other choices are nice too! Look forward to seeig what you get.

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    1. Adam,
      Relatively high payout ratio seems to be typical for telecom companies, but you are right, it's one thing to consider here.
      Now T is investing rather heavily in Mexico, and DirecTV should be landing soon. I hope that all plays out well, but the only problem is that you can't really know beforehand:) Anyways, I would like to buy more, not much, but just to keep that dividend sum going up quarter by quarter.
      Thanks for dropping by!

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    2. Ah yes ok. I did a quick screen on finviz and see what you mean about this sector and the payout ratios. Youre exactly right. Thanks for the info. Learn something every day!

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  2. I like your shopping list :)

    Some really great strong names on the shortlist. Cant go wrong with any of them really....I have a few of those on my watchlist as well.

    Looking forward to see which one you buy.

    Happy investing
    R2R

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    Replies
    1. Thanks, R2R!
      I liked your BNS purchase. I should buy more too, but first I should sell my shares in New York and then buy them back in Toronto. Now next ex-dividend date is so close that I will leave this to August, perhaps.
      Let's make great purchases in July:) Thanks for your visit.

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  3. Really nice list Dividend Lord. I like all of your listed stocks with my current favorite being RY.TO, T, and PG. I do think PG will drop a few more dollars in the near future though. Don't forget to buy the first item on your shopping list, food :-)

    Dividend Dreams

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    1. Thanks, DD!
      I can't wait to get my hands on Royal Bank. If PG drops a few more dollars, then I would buy more with pleasure.
      Yeah, I try to remember the first item on my shopping list. It's kind of mandatory if I want to be able to buy the second one:)

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  4. Thanks for the list, I just bought T myself recently after the Mexico deal was announced. I think T is on the right track to growth again. Well see.

    PS - Love the shopping list, how many people actually have a list that looks like that I wonder. :-o

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    1. Captain, thanks for stopping by!
      I can feel that your August dividends are not going to look bad after that T purchase.
      Well, I haven't seen that kind of shopping list very often, but I think there is everything growing young man needs:-)

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