November 2018 Stock Considerations

As the calendar shows November, it is time, once again, to highlight some of my potential stock buys for the upcoming month.

Are we having fun yet? Are any of you making sense of the market these days? I can honestly tell you that I have zero idea about what’s going on and where we’ll be in the near-term. To say October was a volatile month is a severe understatement and looks like November is starting out the same way. Perhaps I should invest in something a lot more stable with minimal volatility like Bitcoin. It’s always an option… In any case, looking forward to my potential November buys I am presented with a lot of choices as many high-quality names have been trading at historically high yields because of lower pricing. While not practical to list twenty stocks I have whittled my choices down to about five. Of course, there is always the caveat that Mr. Market may give me a new opportunity not considered in this post. With that being said let’s take a look at my potential stock buys for November.

First up is a name that I know is very much unloved, and for good reason, as growth concerns and debt plague this once staple food company found in many low volatility portfolios, The Kraft Heinz Company (KHC). This stock, along with many others in the sector continue to look “ugly” which is why I am taking a peek under the hood and might want to nibble a bit at these levels.

Next are a couple of health sector names that have also been beaten up as of late but seem to offer good potential long-term gains and yields, Gilead Sciences, Inc. (GILD) and AbbVie Inc. (ABBV). While I am really loving ABBV at these levels it is already a sizable portion of my portfolio and I may defer to GILD instead.

Finally, I am looking at two other long-time income favorites among many in the DGI community, AT&T Inc. (Tand Illinois Tool Works Inc. (ITW). While T seems to really polarize opinions on the stock as most either love it or hate it, ITW, on the other hand, seems like a much-loved stock that is currently suffering a near-term swoon (though has bounced nicely from its recent lows).

Bottom line, all the stocks mentioned are trading at much higher yields because of recent price swoons. To me, it signals a potential buying opportunity as many of the concerns regarding these companies in the near term might be overblown (perhaps KHC has deeper issues).

Disclosure: Long KHC, GILD, ABBV, T, ITW.

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