January Stock Considerations

A new year and a new month are upon us, which is the perfect time to lay out potential stock investments for my dividend income portfolio. This month I am faced with the question of finally dipping my toe into the energy sector, as many dividend growth bloggers have been doing, or perhaps stick with ‘more of the same’ and add to my current holdings and average down where possible. Quite honestly, despite the recent run up in many of the holdings I currently own, I am looking to continue to add to my positions that have worked for me for the past seven plus years. While I recognize that my portfolio might not be the highest yielding among the dividend bloggers, it does offer me reliable dividend growth and peace of mind that I value tremendously. That being said, I’d like to highlight several of my January stock considerations. Of course, with all the volatility in the market in recent months, Mr. Market may guide my investment decisions elsewhere.

Looking at my taxable account I am first considering Emerson Electric Co. (EMR). An industrial and dividend paying stalwart, EMR seems to be a relatively attractive investment within its sector. Currently, in line with its five-year average PE of 20.3, EMR offers a very attractive yield of 3.10%.

Similarly, though not in my current portfolio, I am also considering initiating a new position in United Technologies Corporation (UTX). Another dividend stalwart, UTX has a lower PE of 16.95, which is in line with its five-year average. Yielding 2.10% I may be inclined to pay a little premium for the EMR stock instead.

In the consumer staples space I am considering two names that really need no introduction, Kraft Foods Group, Inc. (KRFT) and General Mills, Inc. (GIS). Lower growth KRFT is attracting me because of its current yield while better growth prospect GIS might offer both good current yield with future overall value in the form of dividends plus capital appreciation.

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Disclosure: Long EMR, KRFT, GIS, JNJ, TD, BNS, RY, UL

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Keith Park 3 years ago Author's comment

Well I am not buying them just yet. These are my January stock considerations. As the beginning of every month I like to set out several stock ideas to consider before actually pulling the trigger and buying. To see stock prices that I purchased in the past you can visit my portfolio page http://divhut.com/portfolio/ Most of the yields are over 3% for each stock mentioned except JNJ. Thanks for commenting.

Carol Wydra 3 years ago Contributor's comment

specifially re KRFT GIS UTX..at what price are you buying them and what is their current yield. what did you enter TD BNS and RY at? what are their yields right now? interesting ideas..GL