Hello everyone, it has been a while since I made my last investment, but currently the market offers some interesting opportunities to add some stocks. My current watch list involves the following companies Qualcomm, AT&T, BHP Billiton, T. Row Price Group and Exxon Mobile. As you can see the list is relatively large but let’s dive into every stock a little deeper.
Qualcomm just inreased the dividend by 7.5% to a new yearly dividend of 2.28 USD per share. Based on the current share price of 52.48 USD the company also offers a very attractive yield of 4.34%. By the new dividend the payout ratio will be around 53% considering the lower EPS expections of 4.31 USD for 2017. The reason why Qualcomm looks so attractive is the fact, that it offers a high yield with reasonable growth and very good pay out ratio. Further more the company has increased its dividend for 14 years. The current price is around 25% below its 52 week high and the valuation is also below its 5 year average.
T. Row Price Group
T. Row Price Group is one of the companies with an impressive dividend history of increasing the dividends for 30 years in a row. Currently it pays a yearly dividend 2.28 USD with a yield of 3.15% based on a share price of 72.32 USD. The pay out ratio is also on a very reasonable level and it recently increased the dividend by 5.55%. Considering the fact that T.Row Price is not overvalued, the current valuation is below its 5 year average, it is definitely worth having it on the radar.
As I wrote about a couple of days ago AT&T is probably together with Qualcomm one of my next picks. I do not need to say much about that stock currently it pays a dividend of 1.96 USD with offering a yield of 4.85%. The current valuation is also fair, even though I am hoping for little drop in the share price.
BHP Billiton and Exxon Mobile
These two stocks are not on my top watch list but I have an eye on them. As you might know from my portfolio I am not invested in any stock from the energy sector. The last year was quite a tough one for that sector but I think it is worth to have a look at it again. For me BHP and Exxon are by far the strongest companies in there, by having especially an impressive balance sheet. Exxon has even increased its dividend in the last year which made it the 34th increase in a row, on the other side the pay out ratio is way too high. BHP on the other side took another approach by cutting the dividend in the last year, but this it has increased the dividend again. It recently paid an interim dividend of 0.40 USD per share. All in all both stocks are on my list of future investments :).
After all I probably will make two major investments in the near future one of it will be Qualcomm and the other one AT&T. I am planning only doing investments of at least 2 500 EUR anymore. Reasons for that are of course saving fees and I do not want to increase the number of companies in my portfolio a lot more. AT&T would be my second repurchase after Target.
What do you think about my watch list? What stocks are on your list?
Disclosure: I do not recommend any decision to the reader or any user, please consult your own research. Thank you for your understanding.