Current Watch List

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 Inc.

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.

AT&T

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 :).

Conclusion

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.

11 Comments

  1. Great list and all good choices. Only one I currently own is T and it has done very well with it’s high dividend yield and history of growth/ payments. Qualcomm has been on my watch list for a while but haven’t got around to buying it. Decided to jump into the healthcare sector recently because they seem to be getting hit pretty hard providing great value. Oil is also coming down as of late, but I think it still has more room to fall. Either way, all choice are good and you can’t go wrong with any of those busy. Looking forward to what you decide to do.

    • Hi,

      thanks for the comment, well I will see which stocks I finally going to buy but I guess it will be the two mentioned above.

      Cheers

  2. I’m a fan of the energy sector. Oil prices have stabilized and a lot of energy producers have finished writing down bad loans. I think over the next few years oil prices will rise slowly, so energy stocks should do well.

  3. Looks like a solid list. I especially like QCOM at these levels, but T and XOM I’d like a bit lower. Although that’s more of a function of having semi-large positions in them already.

    I just glanced at your portfolio and there’s a lot of solid companies there. One thing I’m curious about though is why such concentration with US based stocks? Granted just about everyone of those companies has a large international presence but I guess I just expected to see a bit more concentration in European companies.

    All the best.

    • Hi JC,

      thanks for the comment. Well one of the reason is, the dividend politics of the european stocks are not very consistent. Another reason are taxes it involves a lot of administration work to get back the taxes I paid too much. Nevertheless there are a few companies like Siemens, Allianz, Unilever, Vodafone on my list. Currently I also try to cover the european sector by investing in ETF’s.

      Cheers

  4. Some good picks you mention. While I don’t own tech I can say that QCOM is a great long term tech play. They potentially have a very long runway in front of them for their chips. Also like TROW though I question their long term relevance in a fintech/roboadvice world. I hold TROW but it’s a very, very, very small position. I would only consider adding well under $67. Still, a solid name by today’s financial standard.

    • Hi DH,

      thanks for the feedback. I also prefer QCOM over TROW, but let’s see where TROW will go with its share price in the near future.

    • Hey IH,

      thanks for the comment. I agree with you Qualcomm will be an interesting pick int the future. Especially when looking at their pay out ratio.

Leave a Reply

Your email address will not be published.


*