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).
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.
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!