Following on from my most recent value stocks watch list, I wanted to note down a few ideas for May stock purchase considerations. As you may have read, I recently sold my shares in the sports retail stock – JD Sports, so I have some extra capital to invest this month. The shares had appreciated over 50% in under one year, and along with their stingy dividend increases (despite having excellent results), I decided to sell.
Adding to Core Holdings is Important, but Boring
So, what is on my radar for this month? Well, there is the obvious increasing to my core dividend holdings such as National Grid and Unilever, but that would be a bit boring to talk to you about. I could also add to my Vodafone position, but that would also be boring – plus the stock is significantly higher than when I last purchased it, having recently increased several more percent this week due to their full year results being released.
BHP Biliton vs. Diageo
So what about new stocks to consider? Well, I have recently been looking at mining and beverages, namely BHP Biliton and Diageo respectively. I don’t really like the fundamentals on BHP Biliton – I know mining is very cyclical, but there isn’t a company in the sector that really ticks all my boxes. So I am leaning more towards Diageo right now. I do not have any exposure to this sector, and Diageo is one of those core dividend paying stocks that form the heart of many a British investor’s share portfolio. However, the yield is not my favourite at just a tad less than 3%. Now, that is not a bad yield for a strong, defensive stock like Diageo, but I am aiming to be closer to 4% in the majority of my dividend paying stocks.
Are Investment Trusts Worth Buying?
I have also been considering opening some positions in investment trusts. I particularly like the fact that they tend to smooth out the payments, and may pay quarterly, and a handful even pay monthly dividends. Somehow that seems kind of awesome and almost too good to be true, but I would be happy with quarterly dividends, and I wish more companies would adopt this model of payment frequency. However I have not really had time to do a proper investigation of investment trusts, so they will be back on the back burner for this month.
Completely Unrelated News
We are going on holiday next week, so I might not make a post. If I do, it will be a bonus – you lucky readers you! So wish us safe travels, and in the meantime, please comment on which stocks YOU are considering for this month… or if you have already bought some, share the details and the WHY of your purchase.