Stocks I’m considering for September

The end of the month is coming near and that’s usually the time I add more shares to my portfolio.

Here are my top three picks for this month:

1. Van de Velde (EBR:VAN)
After further researching Van de Velde, this company has made it to the top of my list. Last year I bought it a couple of days before the ex-dividend date in November, something a lot of people apparently did as a nice run-up in the share price occurred right after my purchase. The result was that I not only pocketed the dividend but saw my shares increase in value too.

While I’m not counting on a return of what happened last year, the company is once again paying out a juicy interim dividend that I want to collect with some extra shares. Including the special interim dividend, the current net yield is 4.80% after 25% Belgian dividend tax.

2. AB Inbev (EBR:ABI or BUD)
Not really a typical dividend growth company, it has a spotty dividend record, a staggering amount of debt and sluggish sales as of lately. The SABMiller deal excites me though, if it gets approved and the 3G boys can work their magic once more investors in the future SAB InBev (?) can look forward to significant earnings growth over the next couple of years.

The current net yield (after 25% Belgian tax) is 2.28 percent but I think it’s likely that there will be a dividend cut after the SABMiller acquisition as the company will need to prioritize debt reduction. For foreign investors there may be an additional reason to cheer as rumors point to a move of the HQ from Leuven to London, which would remove the foreign withholding tax.

3. Diageo (DEO)
This drinks company has been on my watch list for some time, the stock price has been slumping this year resulting in a P/E of 18.65 and a dividend yield of 3.05 percent. The company seems fairly valued right now but one potential worry is that Diageo is under SEC investigation under suspicion of channel stuffing.

Unless something else pops up, this could very well be my buy list for the next 2-3 months.

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4 thoughts on “Stocks I’m considering for September

  1. Geblin

    Hi DaC,

    Van De Velde is certainly a good stock/company. I would add some more to my portfolio once they get cheaper.

    I do own AB Inbev but I won’t add to that position until I know what will happen.

    I’m currently looking to Engie (ex-GDF Suez), the dividend isn’t as stable as most companies that I own but it seems like a value play to me. If I use the method of Benjamin Graham it is undervalued and it is currently below book value. Energy companies are currently not the hottest stocks so it is possible to do some bargains in that sector. It popped up on my radar since I purchased GBL (the holding of Albert Frere) this month.

    Cheers,
    Geblin

    Like

    Reply

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