Stock Considerations – June 2017

ID-10031069-300x203 Stock Considerations - June 2017I would like to start off by saying that I am truly blessed to be in this position to be even considering stocks for purchase for this month.

For the month of June, I plan to make three buys plus the FRIP buys I do while I use my dividend that comes in for the month.

First, let’s talk about last month buys.

I first started the month of May by initiating a position with QCOM. I still feel QCOM is undervalued, but I would not add any more shares for now because towards the end of May I made another purchase of QCOM here.

In between the two purchase of QCOM, I was able to also initiate a position with CVS. I still think CVS is undervalued right now. As a matter fact, CVS is one of the three stocks that I am considering to buy for this month.

Here are my three Stocks Considerations for the month of June:

CVS Health Corp (CVS): 

5 Year Avg Dividend Yield: 1.46%   Current Dividend Yield: 2.60%

Payout Ratio: 37.06%   5-year Dividend Growth Rate: 27.90%

Current PE: 15.93   Foward PE: 12.06

Current Price: $76.83

S&P Capital IQ Fair Price: $100.60

Yahoo.com Target Price: $86.77

My DDM Analysis: $81.52

 

W W Grainger Inc (GWW):

5 Year Avg Dividend Yield:1.74% Current Dividend Yield: 2.97%

Payout Ratio: 50%   5-year Dividend Growth Rate: 14.10%

Current PE: 17.62   Foward PE: 15.33

Current Price: $172.28

S&P Capital IQ Fair Price: $163.10

Yahoo.com Target Price: $188.33

My DDM Analysis: $187.64

 

Gilead Sciences, Inc. (GILD):

5 Year Avg Dividend Yield: N/A   Current Dividend Yield: 3.21%

Payout Ratio: 20%   5-year Dividend Growth Rate: N/A

Current PE: 6.86   Foward PE: 8.73

Current Price: $64.89

S&P Capital IQ Fair Price: $N/A

Yahoo.com Target Price: $78.59

My DDM Analysis: $76.23

 

For my first buy of the month, I am leaning towards CVS. Since I already own CVS and I am currently in the red by 5.44%, this will be a great opportunity to lower my cost basis. I do not currently own GWW and would love to open a new position of this company at this price. I do own GILD and I am in the red at 39.90%. This may be my second buy of the month if the price stays at this level.

I will hopefully make my next buy this Friday or Monday, so stay tuned and find out!!

Thank you for reading.

What will you buy this month?

 

Image by suphakit73 at FreeDigitalPhotos.net

Comments

  1. Love the watch list. CVS and Grainger have been two of the more popular stocks on our website over the last quarter. Great companies and a great time to potentially score some value. I saw you already added CVS…is there some GWW to come as well??

    Bert

  2. I like GWW and GILD as potential picks. I only hold GWW and added to my position after their free fall a few weeks ago. Nice QCOM pick up. It was a May consideration for me but went up quite nicely last month. Thanks for sharing your choices.

    • I’m buying CVS tomorrow morning, but I do plan to buy GWW and GILD in the near future. Yea QCOM has a nice run up. I got in just in time lol

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