This will be my first post about my stock watch list. I am going to summarize the most important fundamental data and explain why I want to buy them sooner or later.
As you can see my portfolio is still very small and I still need more diversification. So right now I am looking more for new investments than on adding more shares on existing positions. I know EMR is very tempting right now J. Nevertheless for the rest of the year it looks like that I will have enough cash for at least three additional investments.
So let’s start with the stocks
Right now I do not have any stocks from the oil sector in my portfolio. The reason is I am a little more sceptic about the risks of the sector compared to other investors. First there is the general market risk plus the risk of the oil price etc.. But in Exxon Mobile I found a company with very strong fundamentals and healthy financial management.
The current quarterly dividend is $0.73 per share and its yield is at 3.46%. Exxon Mobile increased its dividends for 32 years and the average growth per year over the last 3 years is at 13.8 %. The current payout ratio is at 73 %, based on the quarterly earnings per share of $1.00. Even though the oil price is on a very low level Exxon still will be able to increase its dividend without having a payout ratio of more than 100%.
This stock is on my watch list for months, just its stock price seemed too high for a purchase and so didn’t offer an attractive yield in the past. MMM is a diversified technology company operating in the following business sectors: Industrial and Transportation, Health Care, Consumer and Office, Safety, Security and Protection Services, Display and Graphics, Electro and Communications. It has increased its dividends for 56 consecutive years and still offers a moderate payout ratio of 53.4%. The current quarterly dividend is at $1.02 and its yield is at 2.62%. The average annual dividend growth in the last 3 years is at 15.8%. MMM will probably never be a high yielding stock but its dividend history and the moderate payout ratio is one point, besides the very good looking fundamental data, that convinced me to buy that stock sooner or later.
Like MMM General Mills also has been on my watch list for quite a while and besides Coca Cola and Pepsi I am not invested in any other consumer food product companies. The most popular brand outside the US is probably is probably the ice cream Häagen-Dazs. General Mills has increased its dividend for 11 consecutive years its current payout ratio is at 60.7%. The quarterly dividend is right now at $0.44 which results in a yield of 3.01%. The average annual dividend increase of the last 3 years is at 11.2%. One of the most impressive facts about General Mills is that it pays dividends continuously since the year 1898. It did overcome every financial crisis and in combination with its wide product range I am convinced that it will remain one of the big players in the food sector.
Consolidated Edison is one of the largest utility companies in the US and delivers electricity, natural gas, and steam to customers in New York City and Westchester County. It was founded in 1823. The company has increased its dividends for 40 years in a row. The current dividend per year is $2.60 with a yield of 4.20% based on a stock price of $61.95.
The current pay out ratio is at a stable level of 69.5% based on EPS of $3.77 and its P/E ratio is at currently at 16.50. Based on the historical PE ratio it doesn’t make very cheap right now but I think it is priced with fair value. The average annual dividend increase is 1.6%.
The company will be one of a my higher yield stocks with low annual increase but as it operates in slow and but steady growth sector it will bring the necessary stability to my portfolio.
What are your stocks on your watch list right now?
Disclosure: I do not recommend any decision to the reader or any user, please consult your own research. Thank you for your understanding.