Watch List – SBUX , V and KR
Last month right after I decided to start my watch list shortly after I decided to go ahead and pull the trigger and buy some shares of Target (TGT). I think it was a great addition to my holdings. I look forward to future opportunities to strengthen the position even more. I have decided though that I need to add a few more names to my watch list. I decided back in July to start watching these first 2 stocks after I posted this in the forums.
This first company just never seems to go on sale. It seems to always be selling for a premium price but I just see so much future potential growth for the business. It is the only place that I can go to and see lines out the door…. or backed up in the drive thru…. and everyone is just patiently waiting. To me it is currently in a league of its own with no real competition in sight and they also have the best Frappuccinos around. Of course the company I am referring to is Starbucks.
I have been contemplating this for awhile but think that I have decided to pick up shares here and there using the Loyal3 platform because shares can be purchased in whatever amount I want without having to pay a fee for the trade. So basically I am looking to selectively dollar cost average my way into a position the same way that I did with Microsoft before that stock started taking off. Now I want to give some base metrics so that I will know where the stock was at when I first added it to my Watch List.
- Starting Price: $55.90
- Dividend Yield: 1.43%
- Annual Dividend: $0.80
- PE: 31.23
- EPS: $1.79
- EPS Payout Ratio: 42.3%
Also along with Starbucks I am also watching Visa. Once again I am aware of the fact that this stock always seems to be selling for a premium but I see great potential in this company going forward. Even when the market has had little pullbacks it doesn’t seem to affect the price of Visa very much. It is a strong company that I am considering buying some stock in and then just hoping that it would drop below my cost basis so that I could buy some more.
- Starting Price: $80.14
- Dividend Yield: .70%
- Annual Dividend: $0.56
- PE: 30.80
- EPS: $2.60
- EPS Payout Ratio: 20.1%
The next stock that I am adding to my watch list is a supreme grocery store that I have grown up shopping in. Kroger was one of the first grocers to really start embracing the need for an alternative selection of groceries, they have really paved the gap between a traditional grocery store and a special grocery store like Whole Foods. Right now I see a great buying opportunity in the stock with it way off of its 52 wk high, I think there is a lot of potential for future growth with a low yield and currently maintaining a payout ratio of 21%. This is a great company that I would love to add to my portfolio.
- Starting Price: $32.62
- Dividend Yield: 1.47%
- Annual Dividend: $0.48
- PE: 15.24
- EPS: $2.14
- EPS Payout Ratio: 21.6%
These are the 3 stocks that I am adding to my watch list. They are all great companies and would love to add them to my portfolio given the right situation. In the future I may use different methods to acquire these stocks through either dollar cost averaging my way in or just buying a small position to start with. I intend to keep a watch on them and see where they go and hopefully I can acquire them at a good price and add them to my holdings.
Do you have any stocks that you have recently added to your watch list? I would love to hear about them. Until next time Happy Investing!
Of the three I like Visa the best right now. Cannot go wrong with any of them though.
Investment Hunting recently posted…I Went on a Stock Selling Spree
Visa would probably be best in class with the least amount of volatility over the long term.
Not the biggest fan of the grocery industry. I wrote an article about three of the heavy-weights last month and came to the conclusion that there are better opportunities for the trade off between low yield, high dividend growth rate in other industries. The other two stocks, V and SBUX, were on my watch list in June for much of the same reasons you are watching them. Both are great companies and have earned the premium they trade with. If you decide to buy, you know you are buying some solid dividend growth stocks.
Keep us updated with your decision!
Dividend Diplomats recently posted…Lanny’s August Stock Watch List
I understand your reasoning about the grocery industry. It is a low margin industry but Kroger is a best of breed. I will definitely keep ya updated. Thanks for stopping by Bert.
How do those P/Es look when compared to each individual’s history? In a vacuum they seem a little higher than I like.
Evan recently posted…August 2016 Buy – T.Rowe Price
SBUX and V ALWAYS trade at a premium but I do not know how it stacks up side by side with their history. That may be something that I look into. Thanks for stopping by Evan!
Of the 3 on your watch list, I like SBUX the best. I agree it seems to be a little pricey, but it looks like that’s always the case with SBUX. Good luck and happy investing!
I agree with you FerdiS. I hope things have been doing well for you!
i own 2 of the 3 ,Visa is trading at premium.
I think any of those 3 companies will do you well over the long term.
If the market dips you can just dollar cost average it for a while. I’ve owned SBUX for like 10 years and I don’t see them or the other 2 folding up shop anytime soon.
Keep grabbing those dividends!
I totally agree with you. I am sure in time I will add them all. Thanks for stopping by DiviCents!