With earnings season well underway, stocks are making their volatile moves again.
There are currently two candidates on my August watch list:
As can be seen in the graph above, Starbucks stocks took quite a hit recently, albeit recovering somewhat after.
I currently own 75 shares of SBUX in my portfolio and with a current price of around ~$50 I am considering adding to my position and making it a nice even 100 stocks.
SBUX provides a decent yield of 2.81%, and is a Dividend Challenger with 9 years of growing dividend pay-outs.
It’s current P/E ratio is ~17 - quite favorably compared to the 5 year average.
Most appealing however is the recent acceleration in dividend growth, with this year coming in at a great 44%.
Now of course there are reasons Starbucks took this recent hit with investors.
The second stock on my watch list is Legg Mason.
Like SBUX, this asset manager is hovering around 52 week lows (chart above).
It’s dividend features look appealing though. LM boasts 8 years of growing dividends, with an attractive current yield of 4.01%.
It’s current P/E ratio is around 11, close to half (!) of the 5 year average. The dividend growth rate is attractive as well - with a 5 year average growth of 21%.
Both SBUX as well as LM are close to 52 week lows, have attractive P/E ratios and dividend features.
After additional research, I might add them to it my portfolio next month.