Current Watch List

 

In the last few weeks some stocks experienced a decent decline in their stock price and are now looking more attractive for a new investment. On my current watch list are two stocks Old republic international ORI and Reynolds American RAI.

Old Republic International

Old Republic is an insurance company and operates in the following segments:

  • General Insurance
  • Mortgage Guaranty
  • Title Insurance Groups

The company was founded in 1923 and is located in Chicago.

ORI is on my watch list for already a couple of months but its recent raise in the stock price did not make it attractive anymore. But in the last few weeks there was decent decline from its 52 week high of 20 USD to 18.12 USD. ORI increased its dividend in the last 34 years and is currently yielding at 4.14%  with a yearly dividend of 0.75 USD per share. Earnings per share in the last 4 quarters was at 1.53 USD, this makes a decent payout ratio of 49.02%. Unfortunately, ORI only increases its dividends only by 1.4% per year, but nevertheless it is an attractive company with a secure dividend.

Potential investment: 70 shares

Additional dividend Income: 52.5 USD

 

Reynolds American

Reynolds American is a tobacco holding company and was founded in 2004 its operating companies sell about 26% of all cigarettes sold in the US.

RAI pays dividends since 2004 and has increased them since then. The current share price is at 47.31 USD which is below its 52 week high of 54.48 USD. RAI is offering an attractive yield of 3.89% with a yearly dividend of 1.84 USD. Earnings per share in the last 4 quarters was at 3.70 USD (including a one-time effect in the first quarter) which makes it a payout ratio of 49.7%.  As I already have 2 tobacco companies in my portfolio, a potential investment would not be very high.

Potential Investment: 20 shares

Additional dividend Income: 36.8 USD

 

Well this is my current watch list of stocks and as you know I am also looking for other investment possibilities. So the investments will not be that high.

 

What do you think about those 2 companies and what are the stocks you are currently having on the watch list?

3 Comments

  1. Ciao DC,
    I have ORI on my radar as well, it hasn’t reached the right price yet (IMHO), but we are getting there. It’s a shame that it doesn’t offer a lot of chances for option trading, but it seems a good company and I might get in soon too.

    Ciao ciao

    Stal

    • Hi Stalfare,

      thanks for the comment, yes ORI is still a bit overvalued right now but we are getting close to be a potential buy.

      cheers

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