January 2020 Stock Considerations

New month, new year. Time, once again, to highlight my potential stock picks for the month of January. As you all know by now, I like to make monthly stock purchases no matter what is going on in the world or markets for that matter. Over time, the worst possible news simply becomes a blip barely registered on a long enough stock chart. With that being said, let’s take a look at my potential stock picks for the month of January.

First up, I’m heading north and considering Royal Bank of Canada (RY). This is one of three Canadian banks I hold in my ROTH account and it has been a long time since I added to any of them. RY, considered one of the ‘big five’ Canadian banks currently sports a yield of 4% with a PE of 12.6 well below the S&P average. Shout out to Lanny at Dividend Diplomats who is also looking north considering Canadian Imperial Bank of Commerce (CM). I guess we both see something of value with the Canadian banks these days.

Next, I am looking at financial/insurance play Aflac Incorporated (AFL). AFL has been a dividend stalwart for many decades and sports a yield just north of 2% with a modest PE of 13.0 looks fairly valued at current levels.

Finally, I’m looking at consumer staples play PepsiCo, Inc. (PEP). Another dividend stalwart, PEP has been paying and raising dividends for decades and looks to be fairly valued at current prices especially when compared to competitor The Coca-Cola Company (KO). With a yield of 2.8% and PE of 15.6 the stock is looking attractive in an otherwise very expensive market.

Of course, Mr. Market always has the last say in what I buy. You never know when we’ll get that buy the dip moment. Also, I’m looking at some potential REITs to add to my IRA after selling several positions towards the end of 2019. What do you think about my current picks? Are you considering any of these names too?

Disclosure: Long AFL, PEP, KO.

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