August 2020 Stock Considerations | Seeking Alpha


Headlines, headlines everywhere! August has definitely not been a boring month that’s for sure. Gold and silver and bitcoin continue to march higher. The Oracle dips his toe into gold mining. More vapor money to be created. Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) rocking along. Kodak (NYSE:KODK) gone but not forgotten. You get the point. Craziness will always make the headlines as sensationalism always gets the views. Meanwhile, I will continue to make my monthly buys at market highs and market lows, dollar cost averaging into all my positions.

This month, like every other month preceding, I am planning on making a buy. Share by share building up my passive income stream dividend by dividend, staying diversified to mitigate any of my stinkers (BP, GE, KHC, WFC, YUMC, KTB, to name a few) I hold and just watching the world roll by. With that being said, let’s take a look at my August stock considerations.

Like last month, I am looking at Altria Group, Inc. (NYSE:MO) once again. What can I say… I still like the stock well under $45. The juicy yield north of 8% is still covered and the negative sentiment around the stock has not abated. I believe MO’s entry into the cannabis and vaping space will, in the long run, pay off as traditional tobacco usage continues to decline.

Next I am looking at adding to my LyondellBasell Industries N.V. (NYSE:LYB). With a very generous yield north of 6% and a well-covered dividend (moderate payout ratio of 69%) this industrial play is still trading at close to fair value with a forward PE of 14.7.

Another stock I am looking to buy is The Southern Company (NYSE:SO). While admittedly a bit expensive at current levels it does sport a nice yield that is covered (payout ratio of 82% which is not unusual for a utility) and offers a lot of stability that a utility is known for and a decent forward PE of 17.4.

Finally, I am looking at Broadcom Inc. (NASDAQ:AVGO) as I am still looking to boost my tech exposure which is still a small part of my overall portfolio. With AVGO yielding close to 4% the stock seems to be trading at decent value with a forward PE of 13.5 even though the stock is near all-time highs.

There you have it. A short list for the month of August. What do you think about my stock considerations? Are you buying any of these names too? Please let me know below.

Disclosure: Long MO, LYB, SO, AVGO.

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Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.

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