Dividend Stock Watchlist – July 2019

Hey everyone.

Hope life has been good. Sorry for the delay in posts yet again. Last week we got sucked into Stranger Things 3 and watched a episode or 2 each night. I planned on writing a post Wednesday night, but we had one final episode to watch and the wife really wanted to finish the show. We ended up taking last Friday off and went to a friend’s cottage Thursday-Sunday. Great Times.

It’s time yet again to start looking at where we will be putting our money to work this month. The market continues to climb, but there are some deals still to be had out there.

BCE (NYSE:BCE)

In May, we decided to start a position in Bell for our kids’ RESP. It is one of Canada’s top telecom stocks and has a great dividend track record.

The government matched our contribution 20% this month, so money is sitting idle in the account. While this stock is not a steal at the moment, I feel it’s a great blue chip stock that will be around for a long time. Also, the communications sector is still one of our lowest sectors after the selloff of Shaw (NYSE:SJR).

Again, this is not a value buy, but it’s a SWAN (sleep well at night) stock that I would like to get dripping in their RESP.

  • P/E ratio – 19x
  • Dividend Yield – 5.24%
  • Dividend Growth Streak – 10 years
  • 5-Year Dividend Growth Rate – 5.3%

Brookfield Property Partners (NASDAQ:BPY)

I bought this stock back in January for $21.93 per share. The stock shot up to north of 28 bucks in a month or 2 but has since dropped back down. At under $25.00 per share, this stock is undervalued for sure. So cheap that they have been buying back their shares at levels under $27.

I’m a huge fan of the Brookfield family of stocks and I feel this stock doesn’t get the love it deserves. They own some of the best real estate in the world, but the market still seems upset since it bought all those malls.

BPY is a stock I don’t mind dollar cost averaging up on. (Note I do hold them in a TFSA and I will pay taxes. I get about 90 bucks a quarter and I think they taxed me 60 cents… minor stuff.)

Real estate is one of my highest sectors currently and I’m trying to focus on my lowest 4, but I may change my mind this month.

  • P/E ratio – 9.8x
  • Dividend Yield – 7.17%
  • Dividend Growth Streak – 6 years
  • 5-Year Dividend Growth Rate – 20.3%

3M (NYSE:MMM)

3M continues to spark my interest. I bought 3M in April once they dipped down at around $190. The stock continued to slide and went as low as $159 a share. This is one of the best dividend growth stocks out there, but has taken a beating. I think based on their history and the amount of patents they have out there, this is just short-term noise. Some compare it to GE (NYSE:GE), but that is a horse of a whole different colour in my opinion.

Trade wars hurt some companies and 3M is getting hurt right now. They do have some litigation issues, but I feel that is already priced into their current stock price.

One of my goals this year was to start and grow positions in 3M, Johnson & Johnson (NYSE:JNJ) and PepsiCo (NASDAQ:PEP). So this dip really helps that goal, also the industrial sector is my 3rd lowest sector so that’s nice to boost as well.

At $172 a share, their numbers look very appealing, but I think dividend growth will be slower than the past for a couple years as they navigate through lawsuits and growth challenges.

  • P/E ratio – 18.4x
  • Dividend Yield – 3.33%
  • Dividend Growth Streak – 60 years
  • 5-Year Dividend Growth Rate – 14.8%

Magna (NYSE:MGA)

This would be a new position for me, but one I have thought about for a long time now. I have a couple of friends who work there and have nothing but good things to say. Magna is a global automotive supplier and has a great history of raising their dividend and buying back shares.

This is a stock that I feel will get rocked in a recession and has kind of left me on the sidelines. Although, this may be already priced in at current prices. The rise of electric vehicles may help keep the industry pumping cars out as people transition from combustible engines to electric in the coming years.

Conclusion

Well, there you have it, that concludes our dividend stock watchlist – July.

Most likely, I will be adding to our position in Bell Canada since we have cash just sitting in that account and the wife tends to be happiest when we contribute to the RESP (what a great mom). Also, the government may match our new contribution before Bell’s next ex dividend. Any big moves in the other 3 or JNJ and things can change pretty fast though.

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