My Watch List for April – 3 Stocks

I’m always looking out for good quality securities, and if they are under valued that’s great and if they yield high dividend income, even better!

I’ve been pondering about following 3 stocks since some time. In fact, I own two of them and thinking to add 3rd one which is high dividend.  As soon as more capital becomes available, I will be gnashing my teeth in some of these great companies.

1) Abbot Laboratories: ABT

Abbot Laboratories is a pharmaceuticals and health care products company that was founded in 1888. In 2011, Abbot announced that it planned to separate into 2 companies: Abbot and AbbVie, primarily, research-based pharma company.

ABT is trading at P/E ratio of 23.20 with a healthy yield of 2.30% and Market Cap of $58.07 Billion. It’s 52 week was $40.49 and currently at $32.70 looks under valued, almost 20% down from its 52 week. I will be looking to add positions in ABT.

2) Hewlett-Packard Co: HPQ

Hewlett-Packard is a multinational IT technology company with varied interests in hardware, software and services and was founded by Bill Hewlett and Dave Packard in 1935 in a car garage. HP has many marquee products under their belt like printers: Deskjet & Laser, PC, Palm, and many others. 

HPQ is at reasonable P/E ratio of 11.90, a yield of 1.80% and Market Cap of $62.01 Billion. It’s currently trading at $32.72, almost at its 52 high of $33.66, however, considering it’s no where close to 5 Yr high of almost $50, has much room to move further. I started adding positions when it was almost $20 last year and looking to add few more.

3) Prospect Capital Corp: PSEC

PSEC is a leading provider of private debt and equity capital and is a genre of business development company (BDC) and due to monthly payment, it can be a great fit for dividend income earners.

PSEC is at P/E ratio of 9.30, an excellent yield of 12.30% and Market Cap of $3.36 Billion. It is currently trading at $10.82, which is 7% lower than its 52 week high of $11.62. PSEC has moved up quite a lot in last 5 years and it can be considered as fairly or little over-valued, however,  due to its high dividend and also monthly frequency, I will look forward adding to my portfolio.

Are there any securities you are considering to add to your portfolio?

Full Disclosure: Long on ABT, HPQ.

2 thoughts on “My Watch List for April – 3 Stocks

  1. Hi PIM,

    Right now I’m looking at adding Aflac (AFL). Not the greatest of yields but it has a great long-term dividend growth rate and is undervalued at the moment. Adding to my positions in GE and Phillip Morris is also something I would like to do as well. ABT is one I need to research more since I don’t have anything in the healthcare sector yet and would like some exposure at some point.

    Best wishes,
    SFZ

    1. Hi SFZ,

      Thanks for stopping by!

      I have been also looking for some of the financial companies as well like AFL, WFC and BAC. Yes, these companies have chance to grow dividends in rising rate environment as economy picks up.

      I also like GE, MO and in fact own these in another small fun portfolio 🙂 Besides ABT, I also own MRK and ABBV.

      Best wishes,

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