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!

My Buy Watchlist for June

Even though valuations continue to grind higher, I am always looking for new companies to add to my portfolio. There are currently two candidates on my June watchlist: VF Corp (VFC) and The Travelers Companies (TRV).

I wrote about VFC earlier when I put the company on my February watchlist. In that post I listed all the reasons why I like the stock – and wanted to increase my existing position at the time.

With the stock close to $50 again I am tempted to add more of this dividend champion. VFC provides a very decent yield of 3.8% at the moment, while boasting 44 (!) years of dividend increases.

The second stock on my watchlist (TRV) would be a new position in my portfolio – and also my first insurance company.

The Travelers Companies, Inc., through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United states and internationally. The company operates through three segments: Business and International Insurance, Bond & Specialty Insurance, and Personal Insurance.

The company is a dividend contender with 13 years of dividend increases. While the current yield is relatively modest – 2.37% – the five dividend growth rate is a nice 11.92%. 

Another reason why I am putting TRV in my crosshairs is low payout ratio of just 28%, leaving much room for future dividend growth.

In addition to these two companies that would further boost my forward dividend income I am also interested in buying a book: ‘Black Edge‘.

The book is marketed as ‘the story of the billionaire trader Steven A. Cohen, the rise and fall of his hedge fund, SAC Capital, and the largest insider trading investigation in history—for readers of The Big Short, Den of Thieves, and Dark Money’. 

While this has nothing to do with my strategy of DGI I am sure it makes for very interesting reading.

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