It has been a few months since I have purchased my last stock and man oh man am I starting to get an itch. Times have been interesting for me recently. I am arms deep in working through project after project in our new house and have been hoarding my cash lately in the event we stumble on an unexpected “surprise.” But I am extremely motivated to purchase some stock after seeing my cash balance increase, Lanny make some moves by purchasing Cisco, and reading through so many great dividend income summaries in our monthly dividend income summary from the blogging community. It is getting harder and harder to resist. So now, I thought I would put together a watch list to prepare for when the right moment strikes.
My August Watch List
So yes, I’m getting the itch to invest. But I’m not expecting my next investment purchase to be significant. I’m thinking it will fall somewhere between $500 and $1,000 based on the timing of the purchase. Since this purchase won’t make too large of a splash, I am thinking I am going to focus on adding to a position in my portfolio rather than start a new position and use this capital to continue building the foundation I have laid down in a few different stocks. Cisco is a great company with awesome metrics, but this would knock them out of the equation for now. But watch out at a later time! Here are the three companies that I am watching closely.
Stock #1 – Cardinal Health (CAH) – After their last earnings release, this one is jumping off of the table at me. CAH’s stock price has fallen ~13% in the last month and their dividend yield is now over 2.75%. Much higher than the initial dividend yield when I purchased the stocks. Further, their current and forward P/E ratios are around 16X and 13X, respectively, depending on the source for analyst estimates that you use. Their ex-dividend date is not until the end of September though, so I’m not exactly in a hurry to make a move here. I think this is a great opportunity to add to one of the largest healthcare companies out there despite some of the noise in the broader industry.
