March 2017 Stock Considerations

With a new month close at hand it is time, once again, for me to lay out some of my stock considerations for the next several weeks of March. The point of these posts is to help take some of the guesswork out of where I plan to allocate my fresh capital going forward. By making my selections ahead of time I find it easier to commit to buys as all the homework and investment theses have already been completed on my end. All that’s left to do is pull the ‘buy’ trigger. These days, it seems easier said than done as the market, and many stocks I am considering continue to march higher. I am finding it increasingly difficult deciding where I’d like to allocate my fresh capital. Rest assured, I will be making at least one buy in March as I aim to stick to my own mantra of remaining consistent with my buys during all market conditions. I have no intentions of breaking my streak of making monthly buys. That being said, as I look at my portfolio I am left with a handful of potential choices for the month of March.

One of my first choices for the month of March is industrial stalwart Johnson Controls International plc (JCI). This stock recently merged with Tyco International and spun off its automotive interior business Adient plc (ADNT) and now operates as two separate entities. The stock is looking more attractive when compared to prices and values of late 2016.

Another name I am considering, and has been very, very, popular among our dividend investing peers recently is, V.F. Corporation (VFC). By now, most of you are familiar with this name as the stock recently traded near its 52 week low around $48 and most of us were buying. While the stock bounced back from its low in recent days it still trades at very favorable levels and yields north of 3%.

Going into March I am considering initiating a new position in my portfolio with Hormel Foods Corporation (HRL). This is a company that needs no introduction and is in a sector that I favor. The stock is down quite a bit over the last year which has given this dividend stalwart a yield approaching 2%. As with VFC yielding over 3%, which is historically high, seeing HRL yielding 2% or more would make this stock’s yield historically high and a compelling choice for a buy in March.

Finally, I am looking at the health REITs once again, with Care Capital Properties, Inc. (CCP) being my choice in the space. Entering my portfolio via a Ventas, Inc. (VTR) spin off, CCP is still trading at favorable values and is offering a very juicy yield for the added risk of owning this skilled nursing REIT.

As always, these posts are ended with the caveat that Mr. Market has the final say and names that I have not mentioned above may suddenly become attractive. As you can see this month I have a relatively short list of stocks that I am considering. No doubt because compelling values and yields are harder to come by.

Disclosure: Long JCI, ADNT, VFC, CCP, VTR.

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