September 2019 Stock Considerations

Headlines, headlines everywhere! September has definitely not been a boring month that’s for sure. The markets continue to gyrate wildly. Oil spikes the most ever in a single day only to retreat sharply. Interest rates being cut. It’s over for FedEx. Vaping… ban!?! Altria at 52-week lows. Inverted yields. Recession coming… no, wait… recession not coming. Wait… it is coming. Fed forced to inject billions to stabilize overnight lending rates for banks. Better look to bitcoin for some real stability.

This month, like every other month preceding I am planning to making a buy. Share by share building up my passive income stream dividend by dividend, staying diversified to mitigate any of my stinkers I hold and just watching the world roll by. With that being said, let’s take a look at my September stock considerations.

Like last month, I am looking at Altria Group, Inc. (MOonce again. What can I say… I still like the stock well under $50 and at 52-week lows. The juicy yield now north of 8% is still covered and the negative sentiment around the stock has not abated as vaping bans hit the headlines which still might give those wishing to go long the stock some time to make up their mind and pick up some shares at these very low rates. I believe MO’s entry into the cannabis and vaping space will, in the long run, pay off as traditional tobacco usage continues to decline.

Next, I am looking to add a potential new name to my portfolio, Leggett & Platt, Incorporated (LEG). This company has been around for well over 100 years of manufacturing furniture and other related components. This stock has been growing dividends for almost five decades and though this is definitely not a growth stock it does offer a compelling yield well north of 3% with an acceptable payout ratio of 72%. Ever since the stock dropped below $40 it has steadily appeared on my radar. The stock still may be a bit overvalued at current levels especially since its run-up from last month but if prices dip below that magic $40 range it will be a consideration for a nibble.

Disclosure: Long MO.

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