As I'm writing this blog post on November 12th, the high temperature is expected to reach just 33 degrees Fahrenheit today here in Central Wisconsin. This is a bit below the average high temperature for this time of the year. The dip in temperature means that over the next few months, I will largely have to exercise indoors.
Given that it is now the middle of the month, December is right around the corner. With that in mind, I will be going over three stocks that I will be buying next month, absent huge rallies in the weeks ahead.
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Dividend Stock #1: Tractor Supply (TSCO)
The leading rural lifestyle retailer, Tractor Supply (TSCO), is the first stock on my watch list for December. For more details on why TSCO is an appealing buy for dividend growth investors, interested readers can check out my recent Motley Fool article on the stock.
But it basically comes down to a few key points. First, TSCO's customer base is growing as more individuals consider moving from urban areas to small towns or rural areas. Second, the market-beating 1.8% dividend yield is also well-covered. Third and finally, TSCO is reasonably valued at the current $209 share price (as of November 12, 2022).
Dividend Stock #2: FedEx (FDX)
The second dividend stock on my watch list for next month is the logistics giant, FedEx (FDX). My investment thesis for FDX remains unchanged from a few months ago when I wrote about the stock (as well as Bristol-Myers Squibb and British American Tobacco) in a Motley Fool article.
As more consumers turn to e-commerce for convenience, more packages will need to be shipped. And as a leading package delivery company, FDX will be one of the biggest beneficiaries of this increased demand. Along with a low dividend payout ratio, this positions FDX well to be a great dividend growth stock. And the valuation is especially compelling at the current $176 share price (as of November 12, 2022).
Dividend Stock #3: Union Pacific (UNP)
The final dividend stock on my watch list for December is the railroad operator, Union Pacific (UNP). The investment thesis for UNP is the same as it was back in July when I last covered it (and UnitedHealth Group) in a Motley Fool article.
For the past two hundred years, railroads have been the backbone of the U.S. economy. And there's little reason to believe that will change anytime soon. Union Pacific's status as a leading railroad operator and its low payout ratio should translate into solid dividend growth in the years to come. Best of all, the stock's market-beating 2.4% dividend yield comes at a sensible valuation at the current $218 share price (as of November 12, 2022).
November will be over in the blink of an eye. And we will be in the final month of 2022. I look forward to yet another month of adding to my ownership in quality businesses!
Are any of TSCO, FDX, and/or UNP on your watch list for next month?
If not, what stocks are you considering for December 2022?
As always, I appreciate your readership. Please leave your comments below!
I initiated a position in TSCO a couple months back. Really like the company and I'm hoping to add more to my holdings there. UNP is great and I actually scooped up a tiny bit more yesterday. Love the railroads. FDX always seems behind UPS operationally plus they are the only one out of UPS, FDX, Amazon that can never seem to get our packages to us.ReplyDelete
Thanks for sharing your perspective. In my experience, FDX has been about as good as UPS and AMZN in my area when I have received packages. But I don't doubt that they have a ways to go overall.ReplyDelete