My Buy Watchlist for July

Short hiccups aside, the S&P continues to move north.  Less concerned about day to day gyrations, I am always looking for new companies to add to my portfolio. I therefore compose watchlists with stock that get my extra attention and might become next month’s new buys.

There are currently two candidates on my July watchlist: Ford Motor Company (F) and Williams-Sonoma (WSM).

I wrote about WSM earlier when I put the company on my April watchlist.

As can be seen in the graph above the price increased pretty steeply in April – which made me decide not to buy at the time but rather wait for a better entry point.

With the stock around $48 again I am inclined to pull the trigger this time.

WSM provides a decent yield of 3.28%, with a payout ratio of 45% (below).

The second stock on my watchlist is Ford Motor Company. 

Ford is trading at a price of around $11 – and with a P/E ratio of 12.2. From an income perspective the stock is attractive with it’s juicy dividend of 5.43%. 

Considering the payout ratio of 65% (below)-  this big payout seems to be well covered.

With the ascent of electric and autonomous vehicles the car industry is on the cusp of disruption. And then there is the issue of millennials not buying cars.

Ford however seems pretty well positioned for those future developments. Their partnership with Lyft seems prescient – especially given recent (PR) disasters at Uber.

Both companies look attractive at the moment and would significantly add to my forward dividend income.

What do you think about these two companies? What is your watchlist for the month? Leave a comment/reply to share your thoughts!

5 thoughts on “My Buy Watchlist for July”

    1. Glad you like it! And yes – have a look at the link in the article above (‘well positioned for those future developments’). While these new developments are new and exiting, Ford is by and large still a fossil fuel car producer with a significant legacy in terms of platforms, factories, workers, pension obligations etc. We have to see how they manage that transition.

      With the appointment of a new CEO they seem to be heading in the right direction: http://www.freep.com/story/money/cars/ford/2017/05/28/ford-new-ceo-jim-hackett/350559001/

  1. My main concern with F is that the market just doesn’t like it. It’s been a good value on paper for years but unless you bought it in 2008 when it tanked, your performance has been lagging the market by quite a bit even with that dividend. It seems like the price is stuck in a certain range and just doesn’t want to move while the market keeps chugging along leaving it behind.

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