Remember Dow 20K? Well… we are at Dow 23K now.
Less concerned about day to day gyrations of the stock market, I am always looking for new companies to add to my portfolio. I therefore compose watchlists with stocks to research further and with the potential to become next month’s new buys.
There are currently three candidates on my November watchlist: Disney (DIS), AT&T (T) and Scana Corporation (SCG).
Starting with AT&T - as can be seen in the graph above the stock has been going up and down pretty wildly lately.
I currently own 50 shares of AT&T in my portfolio but with the price back at ~$35 I am seriously considering to double that position.
T provides a great yield of 5.41%, albeit with a payout ratio of 92% (below).
The second stock on my watchlist is Disney.
The House of the Mouse is back under $100 again - piquing my interest to increase my existing position.
While concerns regarding Netflix and ESPN remain, I am confident Disney continues to do well given it’s rock solid position in original content and limitless spin-off capabilities in terms of merchandise, theme parks etc.
Considering the payout ratio of 28% (below)- Disney still has a lot of room to expand it’s dividend, much like they keep expanding the Star Wars universe.
Finally - Scana Corporation.
As can be seen in the graph the price fell off a cliff in the past 12 months. Much of this is due to problems concerning the company’s half-built Summer Nuclear Plant.
I still have no Utilities in my portfolio and am looking to add. Recent analysis articles have put Scana on my radar as an undervalued dividend growth stock.
Given Scana‘s dividend features (above) I will continue my research and am a likely buyer under $50.
9 thoughts on “My Buy Watchlist for November”
Interesting. T is always on my aristo-watchlist. Disney I’m also interested in, even if it’s just to offset all the Disney stuff in my house 🙂
Yes both are great dividend companies and also both play in the content space (AT&T’s Time Warner takeover).
That’s great on the Disney stuff – always good to think like an owner and in the process help your (and my!) bottom line 🙂
I like the stocks you chose for your watchlist. I’m also considering of adding to my AT&T position. I’m only slightly worried about the payout ratio and the debt, but the stock price near $35 is very enticing 🙂
Thanks SD! Always pros and cons with choosing stocks to invest in, but like you I find T hard to resist at $35 🙂
Was looking into these stocks as well. SCG might be a bit of a gamble with the possible lawsuits. T has a bit of a high payout ratio in combination with a dropping amount of customers, the yield is okay though.
SCG is indeed a little on the speculative side, and requires more research.
AT&T’s telco business struggles might be offset by more exciting future bets on Time Warner, DirecTV and innovations like FirstNet (http://www.broadcastingcable.com/news/washington/majority-states-back-firstnet-plan/169230).
Also - see my write-up on T back in June: http://www.tallinvesting.com/2017/06/new-buy-att/
Thanks for stopping by!
I too have no utilities in my portfolio, and I know I need to add the for diversity’s sake. My issue is that I missed the huge run up in utility stock prices. At this time I believe most of them are overvalued. However hopefully they’ll start coming down as interest rates rise. I will definitely be on the lookout in the future, and SCG is on my short watchlist!
Yes - I am with you there, many are overvalued. But with a rise in interest we might see some Utils come down to more agreeable price levels. We’ll see!
Thanks for stopping by.
I wouldn’t touch SCG here. I owned it at one point, and was one of my best performing utilities, till all the mess around the westinghouse happened. I sold SCG before the last shoe dropped and still made around 20% cap gains.
In my opinion, SCG is in deep trouble, and it’s not just the lawsuits. They got feds after them now in addition to the hostile state regulators. Dividend will likely to be cut to payback the tax payers on previous rate hikes for the failed plant.