December 2017 Stock Considerations

Here we are entering the home stretch of 2017 and looking back at the last eleven months, one thing is certain… no one predicted a year like this. For all the daily negativity being hyped in the financial, social, political and “fake” media it appears that things have been and will continue to be all right.

Of course, nothing in life rises in a straight line. There will always be those annoying bumps along the way whether it’s dealing with family, friends, career, finances and more but if you are looking at the big, long term picture those annoying bumps and near term setbacks tend to look smaller and insignificant the longer your time frame. Just stay focused on your own personal journey, stay diversified and comfortable with all your investments whether it’s stocks, funds, precious metals, real estate and even cryptocurrencies. Whatever floats your boat, right? With that being said, let’s take a look at my final 2017 stock considerations.

After nibbling on Hormel Foods Corporation (HRL) and General Mills, Inc. (GISfor the last several months as stock prices hovered near their respective 52 week lows I am forced to look elsewhere as both companies have rebounded quite nicely and other opportunities exist in my portfolio. While I did receive a lot of positive comments about buying into those two companies, there was a substantial set that did not like my buys pointing out that HRL and GIS are both old companies offering up processed and packaged foods that were very much out of date and out of touch with today’s consumer. Hmm, where have I heard that song before? McDonald’s Corporation (MCD) anyone? In general, I do not like to bet against a dividend aristocrat. I do like to buy them at sale prices though. So, for December, once again, I am considering, Johnson Controls International plc (JCI). JCI is a solid long term dividend paying industrial that has been lagging a bit post its Adient plc (ADNTspin off and continues to look very good to me at current levels. 2017 has been tough for JCI as its stock price lost a lot of ground and is now trading a few points above its 52 week low.

Next, I am considering a health sector stock that has also been hammered this year, Cardinal Health, Inc. (CAH). This dividend stalwart continues to pay out a safe dividend with a yield that is also relatively high for this stock. At current prices the stock still seems fairly valued even after climbing from its 52 week low.

Sticking to the health sector a couple health REITs are looking attractive to me as well. Names like HCP, Inc. (HCP) and LTC Properties, Inc. (LTC) have seen significant declines the past few months and are looking a lot more attractive these days when compared to earlier this year.

Finally, I have to mention that I am also looking at General Electric Company (GE) for a potential December buy. I know there is a lot of uncertainty regarding this stock in the near term but seeing it priced well into the teens it is becoming more compelling as a lot of the negative news surrounding this company seems to baked into the current stock price. Barring some massive selloff in the market or other world events I don’t see much more downside to this stock. Of course, Mr. Market always has the last word and GE, or any stock for that matter, can tank and new names not mentioned in this post may suddenly look attractive on any given day. That’s just the nature of investing.

What do you think about my potential stock buys for the month of December? Are you considering any of these names for your own portfolio this month? Please let me know below.

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