January 2024 Stock Considerations

PUBLISHED Feb 6, 2024, 3:02:01 AM        SHARE

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With a new trading year already in full swing it is time, once again, to highlight some of my potential stock purchases for the month. While the market had a nice bounce the last couple of months, there is still no shortage of stocks that continue to look fairly valued to undervalued. Looking at my portfolio (just updated for January) I have to say that I’m looking at the same three names I considered in December. While all three had a nice late year bounce they still are trading below my purchase price and I’ll always take an opportunity to average down on a long term holding of mine. 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. Seems like VZ along with AT&T Inc. (T) had a very tough 2023. This stock is trading with a low forward PE of just over 8 and sports a very juicy yield just south of 7% and a moderate payout ratio of around 52% 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.

My second potential buy for December is Altria Group, Inc. (MO). I know this company suffers from declining smoke volumes and is under constant legal pressure and stumbled a bit when it came to vaping and marijuana offerings yet continues to pay out an ever increasing dividend for multiple decades without flinching. The company continues to diversify in non-combustible businesses as well as increasing its alcohol portfolio. I’m not expecting much of a share price increase from this name but at current levels the yield is hard to pass up. Trading with a forward PE around 8 and yield around 9.4% and moderate payout ratio of 77% the dividend still appears to be safe. These numbers haven’t changed much since last month even as stock prices rebounded a bit.

Finally, I’m looking at another beaten down name from last year, UGI Corporation (UGI). This natural gas energy play is still trying to work through its Amerigas propane business acquisition which is dragging down the overall performance of UGI. To me, the company seems fairly valued at current prices and is sporting a nice yield because of its 2023 share price decline. Nibbling here and there makes sense to me at current levels enjoying some 6%+ yield while you wait for prices to recover.

I would like to add one last mention regarding Starbucks Corporation (SBUX). Prices over the last month came down significantly and I may add some shares if prices hit somewhere in the $80s.

What do you think about my potential stock buys for January? What are you looking at as we start the new year? Please let me now below.

Disclosure: Long VZ, MO,UGI, SBUX

Originally Posted on divhut.com
**POSITION UPDATE**

UGI, Buy

UGI Corp.
Return: -31.36%

UGI, Buy

Return: -31.36%


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