December 2018 Stock Considerations

As we soon enter the last month of 2018, it is time, once again, to highlight some of my potential stock buys for December. It’s funny how some months I prepare a long list of potential stocks to buy and other months I barely scrape a few names together. With the start of December at hand, it appears I’ll have a very short list of potential buys. With that being said let’s take a look at my potential picks for the upcoming month.

First up, I’m thinking about doing more of the same which is buy more AT&T Inc. (T), especially if stock prices remain at $30 or below. T was my sole purchase in November as prices remain depressed and yields get pushed ever higher. Sure, there are a lot of near-term headwinds this company is currently facing, not least of which is its debt load, but, the dividend still appears to be quite safe and can reward patient shareholders over the long haul. T still remains less than 1% of my taxable account and much less when compared to all three of my portfolios. In other words, I’m still comfortable adding to my position.

Next, is a polarizing name that you either love or hate but looking strictly at the numbers has become too hard to ignore. I’m talking about Altria Group, Inc. (MO). MO has had a tough 2018, but in recent weeks the stock has really been beaten down hard pushing yields to around the 6% mark. With a moderate payout ratio around 51%, MO has the cash to keep paying this juicy yield. As with T, MO is also less than 1% of my overall portfolio which allows me to add to my position.

Finally, I’m looking at a couple of health sector names that have also been beaten up as of late but seem to offer good potential long-term gains and yields, Gilead Sciences, Inc. (GILD) and AbbVie Inc. (ABBV). While I am really loving ABBV at these levels it is already a sizable portion of my portfolio and I may defer to GILD instead which is offering a historically high yield these days because of depressed prices.

What do you think about my December stock considerations? Are you looking at any of these stocks too? Please let me know below.

Disclosure: Long T, MO, ABBV, GILD

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