January 2023 Stock Considerations

PUBLISHED Jan 21, 2023, 1:40:55 PM        SHARE

img
imgdivhut blog
Image by Gerd Altmann from Pixabay

With a new trading year already in full swing it is time, once again, to highlight some of my potential stock purchases. While the market had a nice bounce the last couple of months, there is still no shortage of stocks that are becoming fairly valued to undervalued. The reality of the day is that we’ll continue to see stock prices continue to come down as interest rates rise. No reason to believe interest rates will stop climbing 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 January stock picks.

First up, I am looking at Verizon Communications Inc. (VZ) once again. I nibbled here a bit in November and December and prices are still looking attractive. This stock is trading with a low forward PE of just over 8 and sports a very juicy yield getting close to 6.5% and a moderate payout ratio of around 56% making this dividend appear to be very safe going forward. I realize that this company may not be a growth machine going forward but what it lacks in growth the current yield makes up for. VZ has climbed back quite nicely from its lows in the last couple of months.

Next, I’m taking a look at a stock that I have not bought in a long time, Broadcom Inc. (AVGO). With a forward PE just under 13 and a decent current yield just north of 3% and a moderate payout ratio around 62% this dividend is considered safe with plenty of room for future growth. At current prices the stock seems to be fairly valued.

Finally, I am also looking at the stock everyone loves to hate Altria Group, Inc. (MO). MO still looks a little rich at current prices but I’ll be waiting for entry points closer to $40. As mentioned, the stock still appears to be expensive with a current PE of 17 but for those looking to cash in on current yield this stock may be the ticket.

What do you think about my stock considerations for January? Another short list like last month. What are you considering for the month? Please let me know below.

Disclosure: Long VZ, AVGO, MO

Related Posts:

  1. December 2022 Stock Considerations
  2. May 2022 Stock Considerations
  3. October 2022 Stock Considerations
  4. September 2020 Stock Considerations
Originally Posted in Dividend Investing Blog
**POSITION UPDATE**

AVGO, Buy

Broadcom Inc
Return: -65.87%

AVGO, Buy

Return: -65.87%


Sound investments
don't happen alone

Find your crew, build teams, compete in VS MODE, and identify investment trends in our evergrowing investment ecosystem. You aren't on an island anymore, and our community is here to help you make informed decisions in a complex world.

More Reads
3 Best Buy and Hold Dividend Stocks for 2023
Image

Competition has heated more than ever in almost every sector. As a result, it has become challenging to identify the best buy-and-hold dividend stocks in 2023. However, some companies have a strong business model in place, and thus they enjoy a meaningful business moat. In addition, they have proved resilient to recessions.

High Dividend 50: Cogent Communications Holdings
Image

Despite boasting 41 consecutive quarters of dividend increases and currently trading with a hefty yield of 6.4%, Cogent Communications is not making a splash with investors.

High Dividend 50: Enbridge Inc.
Image

Enbridge Inc. (ENB) is a Canadian energy infrastructure company that offers a high dividend yield of more than 6% at current prices. While its valuation is not the lowest in the midstream space, the valuation is still reasonable and justified by Enbridge’s higher-than-average quality.

High Dividend 50: Leggett & Platt
Image

Leggett & Platt may not be a well-known name, but it is likely that millions of consumers come in contact with the company’s products every day. Despite being under the radar, Leggett has increased its dividend for 51 years in a row, meaning it is a Dividend King.

High Dividend 50: The Bank of Nova Scotia
Image

The last time The Bank of Nova Scotia (BNS) cut its dividend was back in 1942, in the midst of World War 2.

High Dividend 50: V.F. Corporation
Image

V.F. Corporation (VFC) has an exceptional dividend growth record, with 50 consecutive years of dividend growth.

High Dividend 50: Fortitude Gold Corporation
Image

Mining stocks don’t really have a reputation for consistently paying substantial dividends due to the industry’s cyclical nature.

High Dividend 50: Kronos Worldwide
Image

Few companies in the specialty chemicals industry have a history of paying consistent dividends over a long period of time.

High Dividend 50: New York Community Bancorp
Image

New York Community Bancorp (NYCB) is currently offering a very attractive dividend yield of 7.4% while it is also trading at a low forward price-to-earnings ratio of 7.4.

High Dividend 50: Antero Midstream Corp.
Image

Antero Midstream (AM) is currently offering a very attractive dividend yield of 8.1% while it is also trading at a forward price-to-distributable cash flow ratio of 7.3.

High Dividend 50: LyondellBasell Industries
Image

LyondellBasell Industries (LYB) is a U.S.-based chemicals and refining company that offers a high dividend yield of more than 5% at current prices.

AEP is a Great Buy to Rebuild Your Portfolio
Image

AEP has a proven track record of strong growth, disciplined capital expenditure, and reliable earnings guidance.

A Review of the Vanguard utility index and clean energy fund
Image

A Vanguard stock fund is a type of mutual fund or ETF that invests in stocks, also known as equities. These funds are designed to provide investors with exposure to the stock market and the potential for capital appreciation.

National Grid - NGG Stock Forecast, Price & News
Image

NG has been building its reputation as an investment-grade company with stable revenue growth over the past few years. The key reasons to invest in NG may be its fundamental strengths, including a sound balance sheet, steady earnings growth, and modest payout ratios.

Is Entergy Corp a Buy?
Image

Entergy is trading at a significantly lower valuation than its competitors. As a result, the company is currently undervalued, and better to buy it. Read more.

Is Exelon a Buy?
Image

Exelon Corp. ( EXC ) is getting a lot of attention these days, with analysts and investors trying to figure out if the company is worthy. Read more!

Is Constellation Energy a Buy?
Image

Constellation Energy is not recommended as a buy based on its current price, its negative margins, and its aging fleet of nuclear power plants.

Dividend Income Summary: Lanny’s November 2022 Summary
Image

This is what dividend investing is all about! Investing in dividend stocks allows YOU to earn dividend income, the best passive income stream! Bias, you better believe it.

Dividend Kings In Focus: Northwest Natural Gas
Image

Utility stocks are often associated with long histories of paying dividends to shareholders. Their relatively predictable earnings and recession resistance combine to make increasing dividends somewhat easier over the long term than a business that is highly cyclical.

3 Recession Proof Stocks with Low Volatility
Image

3 Recession Proof Stocks with Low Volatility. The world is experiencing a wide range of macro troubles right now.

Resources for Publishers
Resources for New Investors
Boosted with BossCoin
Financial Literacy Leaders
user_profile
Tom Hamilton
user_profile
Wise Intelligent
user_profile
Mark Robertson
user_profile
Kevin Matthews II
user_profile
Akeiva Ellis
user_profile
Brendan Dale
user_profile
Kenneth Chavis IV
user_profile
Sharita Humphrey