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With the final trading month of 2023 upon us, it is time once again for me to highlight some of my potential stock picks. While the market saw a nice bounce over the last couple of months, there is still no shortage of stocks that are becoming fairly valued -- or even undervalued. The reality is that we’ll continue to see stock prices come under pressure as interest rates remain elevated, putting additional strain on corporate borrowers.

There is no reason to believe interest rates will come down anytime soon. Of course, the silver lining amid the market collapse is that every new dollar put to work today in dividend stocks comes with an automatic higher yield when compared to just a few months ago. With that being said, let’s take a look at some of my December stock picks.

First up, I am looking at Verizon Communications Inc. (VZ) once again. It’s been a while since I nibbled on this telco. It seems like Verizon, along with AT&T Inc. (T), experienced a very tough 2023. This stock has recently been trading with a low forward P/E of around 8, and it sports a juicy yield just north of 7% as well as a moderate payout ratio of around 52%, making this dividend appear to be safe going forward.

I so realize that this company may not exactly be a growth machine, but what it lacks in growth, the current yield makes up for. I know Verizon, like my second pick below, is a stock that everyone loves to hate. However, it somehow continues to pay out nice dividends year in and year out.

My second potential buy for December is Altria Group, Inc. (MO). I know this company suffers from declining smoke volumes, is under constant legal pressure, and has stumbled a bit when it comes to vaping and marijuana offerings, but it has managed to pay out an ever-increasing dividend for multiple decades without flinching.

The company has continued to diversify in non-combustible businesses, and it has been increasing its alcohol portfolio. I’m not expecting much of a share price increase from this name, but the yield is hard to pass up at recent levels. As it was recently seen trading with a forward P/E of just over 8, a yield of around 9.4%, and a moderate payout ratio of 77%, the dividend still appears to be safe.

Finally, I’m looking at another beaten-down name in 2023: UGI Corporation (UGI). This natural gas energy play is still trying to work through its Amerigas propane business acquisition, which is dragging down the overall performance of the stock.

To me, the company seems fairly valued at recent prices. Additionally, it appears to be sporting a nice yield because of its 2023 share price decline. Nibbling on this stock here and there makes sense to me at recent levels.

What do you think about my potential stock buys for December? What are you looking at as we close out 2023?

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