UGIC - July 2023 Stock Considerations
2023-07-06 21:30:00 ET
Summary
- With a new trading month already in full swing it is time, once again, to highlight some of my potential stock purchases.
- The reality of the day is that we’ll continue to see stock prices continue to come down as interest rates rise.
- No surprise here, I am looking at Verizon Communications Inc. (VZ) once again.
With a new trading month already in full swing, it is time, once again, to highlight some of my potential stock purchases. 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 any 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. With that being said, let’s take a look at my potential stock buys for July 2023.
No surprise here, I am looking at Verizon Communications Inc. ( VZ ) once again. I nibbled here a bit for the last four or five months and prices are still looking attractive to me.
This stock is trading with a low forward P/E of just around 8 and sports a very juicy yield north of 7% and a moderate payout ratio of around 50% 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.
Like last month , I am considering adding to my small position of UGI Corporation ( UGI ) . With a forward P/E around 8 and a yield north of 5.5%, this stock, like VZ, might not deliver amazing capital appreciation but can bolster your passive income stream with relatively high yield. UGI has really crashed in 2023 offering us better buying opportunities.
Finally, I’m taking a look at a name that I haven’t touched for several years, Leggett & Platt, Incorporated ( LEG ) . This is another stock that had a rough start to 2023 and is now sporting a yield just north of 6% as a result of share price decline.
With a relatively high payout ratio of about 88%, the dividend still appears to be safe going forward, even though I’d like to see that number a bit lower.
What do you think about my stock considerations for July? Clearly, I’m sticking with a lot of similar names for several months in a row now. What are you looking to buy this month? Please let me know below.
Disclosure: Long VZ, UGI, LEG
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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July 2023 Stock Considerations