It’s been a while since I’ve posted a watch list. I’ve wanted to do so, but there’s been little market value lately. Aside from financial and energy stocks I don’t see much that I want to buy. There are twelve stocks on my watch list that are at or near my strike price. I have 60 stocks on my watch list. These twelve have risen to the top, or they are close to my strike price.
April Watch List
Wells Fargo Bank (WFC)
Wells Fargo is arguably the best U.S. bank. I own 25 shares of WFC. I’d like to get my share total to 100 shares. Wells Fargo has seen a 13.67% price drop YTD.
- P/E Ratio: 11.67
- Dividend Yield: 3.16%
- 5-Year Dividend Growth Rate (CAGR): 49.1%
U.S. Bank (USB)
U.S. Bank is not regularly seen as a dividend investor holding. I suspect this is because 2009 crushed this bank. However, dividends have increased consistently over the past 5 years and the banks annual dividend yield is over 2.5%. U.S. Bank’s stock price is down 8.37% YTD. I don’t own any U.S. Bank shares.
- P/E Ratio: 12.67
- Dividend Yield: 2.55%
- 5-Year Dividend Growth Rate (CAGR): 38.2%
I bought Qualcomm a few months ago on the dip. My cost basis per share is $48.59. The stock is trading today at $50.40, which leaves this stock price flat YTD. I won’t add shares unless the price dips below my cost basis. However, the current price is not bad.
- P/E Ratio: 16.76
- Dividend Yield: 3.83%
- 5-Year Dividend Growth Rate (CAGR): 20.1%
Johnson Controls (JCI)
Johnson controls has been on a roller coaster YTD. Its stock is down 4.20% this year. It’s on a slight climb now, but watch list worthy. On the next dip, I’ll likely add shares.
- P/E Ratio: 17.80
- Dividend Yield: 3.05%
- 5-Year Dividend Growth Rate (CAGR): 14.9%
American Express (AXP)
American Express is down 15.37% YTD. Now that Costco has finally started moving over to Visa, we could see an AXP price dip after financial reporting. If the stock dips, I’ll consider buying shares.
- P/E Ratio: 11.90
- Dividend Yield: 1.93%
- 5-Year Dividend Growth Rate (CAGR): 9.4%
Discover Financial Services (DFS)
I’ve had DFS on my watch list for a long time. I’ve stayed away due to low yield. However, yield is now over 2%, and the stock is down 6.27% YTD. DFS has made a strong commitment to investors with consistent dividend increases the past few years. I’ll consider buying shares if the price dips a few dollars.
- P/E Ratio: 10.0
- Dividend Yield: 2.19%
- 5-Year Dividend Growth Rate (CAGR): 39.2%
Ameriprise Financial (AMP)
I bought shares of Ameriprise earlier this year for $83.91 per share. The stock has surged slightly, but it’s still volatile. I’ll consider buying more if the price falls below my cost basis. The stock is down 14.45% YTD.
- P/E Ratio: 11.0
- Dividend Yield: 2.87%
- 5-Year Dividend Growth Rate (CAGR): 29.5%
CSX Corporation (CSX)
CSX stock is down 5.13% YTD. It was way down earlier in the year, but rebounded lately. If the market cools down, I’ll consider adding shares.
- P/E Ratio: 12.44
- Dividend Yield: 2.9%
- 5-Year Dividend Growth Rate (CAGR): 16.5%
Union Pacific Corporation (UNP)
I’ve bought shares of UNP twice the past 6-months. UNPs stock price is even for the year, but it’s susceptible to dips, especially while the energy sector is up in the air. I’ll add more UNP on a dip. My current cost basis per share is $71.03. I’ve made good income selling UNP options this year. Without options income, my cost basis is $79.32. UNP stock closed today at $78.00. UNP is in the buy zone for me.
- P/E Ratio: 14.27
- Dividend Yield: 2.81%
- 5-Year Dividend Growth Rate (CAGR): 27.4%
General Dynamics (GD)
I don’t own General Dynamics stock, but it’s been on my watch list for a while. GD stock is down 4.35% YTD. With terrorism uncertainty, defense stocks could see big gains later this year. I’m just watching this stock now, but If new contracts are signed I may buy some shares.
- P/E Ratio: 14.50
- Dividend Yield: 2.31%
- 5-Year Dividend Growth Rate (CAGR): 10.4%
T. Rowe Price (TROW)
TROW stock price is even YTD. But this stock has been on a roller coaster. The stock price dipped down to $63.57 in January. I think there will be more dips this year. I own 61 shares at a share cost basis of $77.35. Today’s close at $71.48 would be a good way for me to lower my cost basis. However, I’m watching and waiting. I like this stock at a price below $69 dollars.
- P/E Ratio: 15.73
- Dividend Yield: 2.94%
- 5-Year Dividend Growth Rate (CAGR): 14.0%
Principle Financial Group (PFG)
PFG stock is down 13.98% YTD. The company has strong financials and now its dividend yield is close to 4%. I bought 100 shares of PFG in January. My cost basis is $36.93 per share. I’m not planning on adding more shares, but I wanted to share this with all of you in case you’re interested in buying PFG.
- P/E Ratio: 9.73
- Dividend Yield: 3.85%
- 5-Year Dividend Growth Rate (CAGR): 22.2%
Watch List Takeaways
These twelve stocks make up my April 2016 watch list. I don’t intend to buy all of these stocks in the near future, but I wanted to share the list as I think these stocks are attractive now. Some are in the buy zone now, while others are volatile and could be buys if the market dips. If I do buy this month, I’ll likely be UNP, TROW, WFC, or QCOM.
Do you have any of these stocks on your watch list? If not, which stocks are on your watch list?