maandag 31 oktober 2016

November/December watchlist

On the last day of October it is a good time to think about the coming months. What will my investing goals be up to the end of 2016?

I expect not to be able to invest as much as in October, with 3 buy totaling almost €800 becaus of a loan for our home we will be paying back in December. But a few 100 euros a months should be possible.

I think it is time to add at least one position to my portfolio. And I have a few companies on my watchlist.

My main focus will be on ABBVIE (ABBV) and Target(TGT). TGT is well priced at the moment with a P/E ratio of under 13 and a dividend yield of 3.3%. Also the payout ratio is around 42%, So the company has much room to keep their dividend raise streak going for a while. Theri latest dividend hike was a very nice 7%.

ABBVIE just announced another divididend raise of over 12%. However, their share price collapsed with 6% after they published their lasted figures. Their P/E ratio is just over 10 and dividend yield is now close to 4%. Before investing I should however look at their payout ratio. Comparing 2015 earnings per share with the announced annual dividend for 2017, the payout ratio is very high with 81%. 
So before investing in ABBV I shoud do some extra research. 

Looking at the dividend payout dates ABBV would be more interesting than TGT because ABBV is paying in my "off months". So an investment in ABBV will spread my dividend income better.

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