0

November 2022 Stock Considerations

PUBLISHED Nov 20, 2022, 8:08:49 PM        SHARE

img
imgdivhut blog

With a new trading month already in full swing it is time, once again, to highlight some of my potential stock purchases. While the market had a nice bounce last month 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.

Last month I had outlined five potential stock picks of which I picked up all five. This month I am only considering two stocks with one possible “honorable mention.” With that being said, let’s take a look at my November 2022 stock considerations.

First up, I am looking at Verizon Communications Inc. (VZ) once again. This stock is trading with a low forward PE of just over 7 and sports a very juicy yield getting close to 7% 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.

Next, I’m taking another look at Starbucks Corporation (SBUX). This stock continues to be a loser in 2022, though had a nice bounce recently. For those willing to hold on for many years I think SBUX can be a good long term winner both in price appreciation and dividend growth. Shares are looking fairly valued with a PE of around 24 and a yield around 2.4% with a payout ratio just at 54%. Though the share price has been hammered this year the dividend still appears to be safe. Could be a good month to pick some up.

Finally, my honorable mention stock is Microsoft Corporation (MSFT). A big tech bellwether that has been hammered down so far in 2022 is looking fairly valued at current levels. With a forward PE close to 24 and a low current yield just north of 1% and a low payout ratio around 27% this dividend is considered very safe with plenty of room for future growth. Sure, the low current yield is not attractive but you own MSFT more so for its growing dividend.

What do you think about my stock considerations for November? A much smaller list when compared to last month but nonetheless a list of potential buys. As you know, I make purchases every month and simply dollar cost average into my portfolio. What are you looking to buy in November?

Disclosure: Long VZ, SBUX, MSFT

Originally Posted on divhut.com

MSFT, Buy

Microsoft Corp.
Return: 2.51%

MSFT, Buy

Return: 2.51%


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
How is your Retirement Plan?
Image

Retirement Accounts, Retirement Planning, and what your purpose means in retirement

Watching & Waiting
Image

Stock Market Commentary

How To Save Money Fast – 26 Easy Tips
Image

We all know it’s important to save money. But how do you do that when inflation is up, mortgage rates have increased, and rents are rising? Oh, and don’t forget – extra spending is coming with the holidays around the corner. Yet even in tough times, there are strategies to help build savings fast.

Here Are The Requirements For A Hard Money Loan
Image

Hard money loans are one of the more popular options for buying fixer-upper homes to renovate and resell for a profit. While there are alternatives available – such as using a traditional or renovation mortgage – hard money loans usually fund far faster and are less restrictive. If you’re considering a hard money loan for an investment property purchase, here’s a look at what hard money loans are and the typical requirements for a hard money loan.

Unstable Value Funds (VI)
Image

Well, the last installment in this series was 2009. I ran a Guaranteed Investment Contract [GIC] desk at Provident Mutual from 1992-1997. I also managed our internal stable value funds for our pension line of business. This was during a period where increasingly Stable Value Funds were being replaced by bonds and bond funds being wrapped by a type of derivative that would allow for “benefit responsive payments,” called a “wrap contract.”

What is a dividend trap, and how do you avoid it?
Image

With recent declines in stock prices, dividend traps are becoming more prevalent. In this blog post I'll describe what is a dividend trap, it's potential downfalls, and how to avoid these traps. Before we begin, you need to understand dividend yield, and the dividend payout ratio.

Margin call What is it ?~No.1 Beginners Guide
Image

For starters this happens from time to time. Today we address the no.1 cause of sleepless nights for most newbie traders risking their hard earned money in the markets especially when it comes to a margin call what is it and how can you avoid it?

Why I’m Fascinated With Dividend Investing
Image

I’ve been fascinated with dividend investing for many years. It goes back long before I started my journey to financial independence and early retirement. It seems so simple. You buy a company stock that is stable and has dividend history on their side. A stock that figures for a potential future of continued business with dividend and stock growth.

6 Investing Lessons from Our Honeymoon’s Terrible Start
Image

We had a terrible start to our honeymoon. Bad luck and human incompetence torpedoed our first travel day. Naturally, I took it as an investing lesson. Our itinerary was Rochester –> Boston –> Tokyo –> Hanoi. Then after a few days in Hanoi, onward to Chiang Mai, Bangkok, and other parts of Thailand. But things went poorly from the start.

WHAT PARENTS NEED TO KNOW ABOUT HELPING TEENS BUDGET
Image

​Many teens think they know almost everything – that is until they have to experience adulthood for themselves. Parents of adult children will likely tell you that when their children were teens they, as parents, “knew nothing,” but when the magic of adulthood came around, everything changed. Your teens may even think they know how to budget. As a parent, however, you know that it’s not always easy to make and stick to a budget. So how do you teach teens about budgeting? At Wealthy Habits, our goal is to make the conversation easier and a lot more fun for both parents and teens. Here are three tips we share in our online parent webinar, How to Teach Your Kids About Budgeting.

Budgeting on a Single Income
Image

According to a 2017 report in Market Watch, half of American households are living paycheck to paycheck, and about 49% of Americans worry about their financial well being. Living on a single income only amplifies the stress and worry about finances. Having a plan, maintaining fidelity to it, and re-evaluating that plan can all help minimize the stress and allow you to have control over your expenses and your future.

US Economic Growth Expected To Continue In Q4
Image

The recovery in US economic activity in the third quarter appears set to continue in Q4, based on the median for a set of estimates compiled by CapitalSpectator.com. Although the numbers point to a slowdown in growth, the current Q4 nowcast highlights the possibility that output will post back-to-back quarterly increases for the first time this year

Higher Japanese CPI Won't Change the BOJ's Stance
Image

The capital markets are heading into the weekend mostly quietly in a consolidative fashion.

Skyworks Solutions (SWKS) Stock: An Undervalued Chipmaker
Image

Over the past five weeks, the market has been up 14.7%. Also, after the CPI report was issued last Thursday morning, the market and almost all the stocks had a tremendous run-up. In two days, the market is up nearly 7%.

2 Recession-Proof Utility Stocks With Safe Dividends
Image

The Fed has raised the Fed Funds rate six times this year to combat inflation and the last four times at a 0.75% clip. The current 4% rate is the highest in well over a decade. But the Central Bank has indicated that it will take more pain to get that inflation genie back in the bottle.

Markets are Less on Edge as the Darkest Scenarios seem Less Likely
Image

Overview: The situation in central Europe is still intense but it appears top US, European and Polish officials are more reluctant than some market participants to attribute the darkest of intentions and paint extreme narratives.

WestRock (WRK) A Dividend Stock Comeback Story
Image

Yes, this is a random WestRock (WRK) dividend stock, come back story. Why is it a comeback? WestRock decimated their dividend during the height of the pandemic from COVID-19. One of the world’s biggest, packaging companies reduced their dividend to $0.20 per share, per quarter from the high of $0.465.

Investing Starts with an Investment in Yourself
Image

Invest in yourself - it’s the best thing you can do.

Market Musing 11-14-2022: Is a Market Bottom In?
Image

High Volatility: VIX > 23. The US Markets bounced hard on Thursday’s CPI Data. Will Chair Powell pivot on rate hikes before the end of year?

Breakout or Shake Out ?
Image

Market Commentary