December 2017 Investment Ideas

There doesn’t seem to be a break in this stock market rally. The only way is up and I am wondering for how long can it continue like this. I of course enjoy watching my portfolio growing day by day, but as stocks are getting more and more expensive, it is much harder to find attractive investment opportunities.

In light of the above, my December watch list has only changed in a way that 3 companies were removed versus November. These are the followings:

  • Prospect Capital – I bought some extra stocks last month for $5.76 and at the time of writing this post it is trading 19% higher. Nice increase in a month, but right now buying the stock does not seem to be such a no brainer anymore. I’m still happy to hold it, but that’s it
  • L Brands – I added this stock to my watch list in August when the share price was $37. Now it’s close to 61, which is over 64% increase. Oh, wish I had free money in August to invest… Unfortunately at that time we needed all extra cash to close our real estate deal. Our rental apartment is doing great, but the return on our investment so far is definitely lower than 64%… Because of the huge increase, I wouldn’t buy right now.
  • General Mills – Still not a bad buy, but not my favorite anymore. In case of a correction I would be happy to add it to the list again.

So which companies are staying on my watch list?

IBM

Dividend Yield: 3.87% vs 2.81%

P/E: 12.75 vs 12.12

Payout Ratio: 48.49%

Bo-bo-boooring! There are so many things going on at the market but IBM doesn’t seem to move anywhere. At least I have no reason to remove it from the list.

Target

Dividend Yield: 3.90% vs 2.95%

P/E: 13.18 vs 17.10

Payout Ratio: 59.95%

Target is moving up nicely; over 10% within a month. Historically it still seems undervalued so I would be happy to buy some extra if I had some free cash lying around.

Brinker International

Dividend Yield: 3.79% vs 2.41%

P/E: 13.96 vs 17.74

Payout Ratio: 51.47%

With an over 13% gain during the last 4 weeks, Brinker International is finally showing some life signals. 2017 will still be a bad year for the stock, but not too ling ago the share price was around $30 and now it is close to 40…

Kinder Morgan

Dividend Yield: 2.79% vs 4.56%

P/E: 32.02 vs 155.32

Payout Ratio: 89.29%

I have a great expectation for KMI as I believe 2018 will be a great year for the stock. I am also really looking forward for the dividend hike. If it really happens, I believe a lot of investors will see fantasy in the company again.

 

Which stocks will you put under the Christmas tree dear readers? Share your views below!

 

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Disclaimer: This post or any other information on the site is not intended to be and does not constitute financial advice or any other advice. I am solely sharing my idea, plan and progress on financial independence and early retirement.

 

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One Response

  1. Mr. Robot December 20, 2017

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