February 2019 Stock Considerations

As February knocks on our door, it is time, once again, for me to highlight my potential stock buy(s) for the month. As we all know, there are no shortages of great names to consider as many are still selling at very attractive valuations and yields.

First up, I’m thinking about buying more AT&T Inc. (T), especially if stock prices remain at $30 or below. T was my sole purchase in November as prices remain depressed and yields get pushed ever higher. Sure, there are a lot of near term headwinds this company is currently facing, not least of which is its debt load, but, the dividend still appears to be quite safe and can reward patient shareholders over the long haul. T still remains less than 1% of my taxable account and much less when compared to all three of my portfolios. In other words, I’m still comfortable adding to my position.

Next, is a polarizing name that you either love or hate but looking strictly at the numbers has become too hard to ignore. I’m talking about Altria Group, Inc. (MO). MO has had a tough 2018, but in recent weeks the stock has really been beaten down hard pushing yields to over the 7% mark. What?!? With a moderate payout ratio, MO has the cash to keep paying this juicy yield. As with T, MO is still a small, yet growing part of my overall portfolio which allows me to add to my position.

Clearly, MO has been on my mind as I made two separate buys in the stock in January. Another tobacco stock I am also considering is Philip Morris International Inc. (PM). Like MO, 2018 has not been kind to this stock but with impressive yields, it’s another name that’s getting hard to ignore even though both names bounced nicely from their recent lows put in they are still attractively priced.

Finally, though the second largest holding in my portfolio, I am looking at AbbVie Inc. (ABBV) as well. January has been a tough month for the stock and it is once again trading at levels not seen since October of last year. With a sustainable yield pushing well over 5% this long time holding of mine is looking enticing as well.

So there you have it. A short and sweet list for February. Of course, there are many other names I’d like to consider as well but I think I’ll remain focused on these four for now.

What do you think about my potential stock picks for the month of February? Are you looking at any of these stocks as well? Please let me know below.

Disclosure: Long T, MO, PM, ABBV

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