July 2017 Investment Ideas

It’s the middle of the summer, but it doesn’t mean that there are no interesting investment opportunities out there. In the following I’ll share my own personal favourites with you.

The stocks listed in last month’s investment ideas still look like attractive purchases for me. Most of them didn’t move too much in either direction since then, besides of Brinker International (EAT).

The share price of Brinker is near 52 weeks low. Honestly I don’t really get the reasons behind this big sell off. I will look at the next earnings report closely. This will be released on 10th August.

EAT now offers 3.7% dividend yield, which is well covered by the earnings (the payout ratio is 44%).

There are a lot of bargains in the retail sector right now, but my personal favourite is still Target (TGT). The current dividend yield is a whopping 4.88% with a less than 50% payout ratio.

This month two new stocks have been added my watch list:

W.W. Grainger

W.W. Grainger is a 90 year old company, offering maintenance and repair services plus related products mainly to business customers.

The company is also a dividend aristocrat, meaning that it has managed to increase its dividends for over 25 years.

Due to a weak 2017 earning guidanceguidance, the share price is under big pressure this year. From $262 it has fallen to $170 which is over 35% decrease.

In my view the share is quite oversold now. The current dividend yield is close to 3% (the 5 year average is only 1.8%) and its still well covered even by possible weaker earnings.

General Mills

general-mills

General Mills is also the member of the dividend aristocrats. The company is paying dividends for 118 years!

Still, due to weak earnings the share price is under pressure during the last few months. From its record of $72.70, now it’s trading in the low 50s.

Considering it’s valuations, it’s still not super cheap, but it might worth to start adding some positions at the current levels. Meanwhile patient investors are being rewarded with a 3.6% dividend yield.

Other Considerations

Of course besides of the above individual stocks, I did not forget about the European and Indian ETFs. I already have some small exposure in these, which I am planning to increase in the future.

 

As you can see above, there are a lot of opportunities that I would be happy to consider as my next purchase. Still, July might be the first month when I might not add any new positions. This is because our real estate project is finally entering into a very final stage, so we are putting some cash aside to further support it. But this will be a topic of a separate post…

 

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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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6 Comments

  1. Dividend Daze July 18, 2017
    • Roadrunner July 19, 2017
  2. Investment Hunting July 19, 2017
    • Roadrunner July 23, 2017
  3. Mr. Robot August 14, 2017
    • Roadrunner August 14, 2017

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