Given my investment strategy, I am much less concerned about day to day gyrations of the stock market.
Moreover, I am always looking to benefit from them in my search for new companies to add to my portfolio.
There are currently two candidates on my September watch list:
Looking at the chart above, INTC’s stock price has declined significantly after their June peak .
I currently own 25 shares of INTC in my portfolio - and I added those at a price of $48.93. With the current price even below that level, I am interested in potentially doubling my position.
INTC provides a decent yield of 2.52%, and is a near Dividend Challenger with 4 years of growing dividend pay-outs.
It’s current P/E ratio is ~17 - still slightly above it’s 5 year average.
For a dividend investor like myself, the recent acceleration in dividend growth is quite appealing. Last year’s dividend growth was 10.09% versus it’s 5 year average of just 5.92%.
The second stock on my watch list is A. O. Smith Corporation (AOS).
Like INTC, this company’s 1 year price trajectory (above) is rather bearish.
It’s dividend features look appealing though. AOS boasts 25 (!) years of growing dividends, albeit with a modest current yield of 1.22%.
It’s current P/E ratio is around 31.13, above the 5 year average of 26.9.
The dividend growth rate is he most encouraging - with a 5 year average of 24.57% and last year coming in at 28.57%.
Both INTC and AOS are close to 52 week lows and have quite attractive dividend features. More research is required but they are serious contenders for near future purchases for my portfolio next month.