The year 2018 is coming to end and I am thinking about which new companies I should add in 2019 to my portfolio. In the last few weeks the financial market has been quite volatile and December 2018 is on its way to be one of the worst months ever in the history of the Dow Jones. But this just means there are plenty of new buying opportunities out there.

My portfolio currently consists of 29 different companies and 4 ETF’s, my plan is to constantly increase that number and to add more shares to already existing positions. But for now I want to show you 5 Stocks which I want to buy in 2019.

Prudential Financial

I was talking a lot about this stock in the last few weeks and it will be one of my first purchases in 2019. PRU has been paying a dividend since 1996 and increased them in the last nine years.

Dividend: Currently the company pays a yearly dividend of $3.60 USD which equals a yield of 4.42%. The latest dividend increase was at 20.0%, which is way above my goal to have an average dividend increase of 7.5%.

Payout Ratio: The current payout ratio is at 29.6%, which is on very low and healthy level and more importantly it leaves enough room for future dividend growth. The next dividend pay data will be in March and the ex-dividend data around the 20th of February.

Finbox Fair Value: 116.07 USD

Broadcom

This stock is new to my watch list. The dividend increases has been outstanding in 2018 and Broadcom is quite a popular stock among the DGI community

Dividend: Currently the company pays a yearly dividend of $10.60 USD which equals a yield of 4.18%. The latest dividend increase was at 51.4%, which is way above my goal to have an average dividend increase of 7.5%. AVGO has increased its dividend for the last eight years.

Payout Ratio: The current payout ratio is at 58.6%, which is still OK, but looking at the future EPS expectations the pay out ratio will be again way below 50%.The next dividend pay date will be in March and the ex-dividend date around the 20th of March.

Finbox Fair Value: 317.04 USD

Exxon Mobil

This company is on my watch list since quite a while, but the valuation has not been that cheap as it is right now. So for me it's a must investment for 2019 at these price levels.

Dividend: Currently the company pays a yearly dividend of $3.28 USD which equals a yield of 4.81%. The latest dividend increase was at 6.5%, which is just a little bit behind my goal to have an average dividend increase of 7.5%. XOM has increased its dividend for 35 years.

Payout Ratio: The current payout ratio is at 71.3%, which is quite high but for a stock like Exxon Mobil still okay. I am not expecting any huge growth in the future, but XOM is a good base for everyone's Dividend Portfolio. The next dividend pay date will be in March and the ex-dividend data around the 10th of February.

Finbox Fair Value: 83.45 USD

Illinois Tool Work

This is also new to my watch list, but its current valuation and dividend history makes it as well an attractive investment for dividend investors.

Dividend: Currently the company pays a yearly dividend of $4.00 USD which equals a yield of 3.21%. The latest dividend increase was at 28.2%, which is way above my goal to have an average dividend increase of 7.5% . ITW has increased its dividend for 54 years.

Payout Ratio: The current payout ratio is at 52.4%, which is on a very healthy level given the latest dividend increases and the long history of dividend growth. The next dividend pay date will be in January and the ex-dividend data around was at the 28th of December.

Finbox Fair Value: 98.99 USD

Gilead Science

This stock is new to my watch list. I do not have that many health care stocks and I think GILD could be nice addition at this price levels.

Dividend: Currently the company pays a yearly dividend of $2.28 USD which equals a yield of 3.68%. The latest dividend increase was at 9.6%, which is above my goal to have an average dividend increase of 7.5%. GILD has increased its dividend for two years.

Payout Ratio: The current payout ratio is at 34.8%, which is on very low and healthy level and it leaves enough room for future dividend growth. The next dividend pay date will be in March and the ex-dividend data around the 7th of February.

Finbox Fair Value: 88.50 USD

Conclusion

As you can see I have some companies with a long dividend history on my must add list and some like GILD and AVGO with a rather short history a dividend increases. But given their current pay out ratio I can see a lot of potential for future growth. Besides ITW all of the stocks seem to be undervalued and offer a fair purchase price at the moment. So let’s see what the market will do in the next months and when I can add them to my Portfolio.