Monthly Stock Report: 29 March 2019

Exxon Mobil (XOM) has moved up from its 8 year low monthly close of $68.19 in December 2018 but is still 4% below the 60 month moving average, has corrected 21% from the highest monthly close in the last 5 years of $102.41, has increased its dividend for 36 calendar years in a row, and has a dividend yield of 4.1% which is 40% greater than the 5 year median of 2.9%.

 

Both CVS Health (CVS) and Walgreens Boots Alliance (WBA) have been on the decline recently.  Both are facing “pressure” from Amazon’s possible move into prescription drug delivery.  CVS Health is also still working its way through the merger with Aetna and has held its quarterly dividend at 0.50¢ going back to January 2017 as it does.

CVS Health is 35% below the 5 year moving average, has corrected 52% from its highest monthly close in the last 5 years of $112.47, and closed at the lowest monthly close in 6 years.  CVS Health has a dividend yield of 3.7% which is 155% greater than the 5 year median of 1.5%.

Walgreens Boots Alliance is 15% below the 5 year moving average, has corrected 35% from the highest monthly close in the last 5 years of $96.63, and has increased its dividend for 43 calendar years in a row,.  Walgreens Boots Alliance has a less attractive dividend yield of 2.8% which is 45% greater than the 5 year median of 1.9%.

 

Packaged food companies have rebounded a bit lately with Kraft Heinz (KHC) stabilizing around $32 after its steep decline in February.  Warren Buffett still steadfastly supports the company so for those with patience Kraft Heinz might be an attractive investment for the long-term.  Kraft Heinz is 54% below the 5 year moving average, has corrected 65% from the highest monthly close in the last 5 years of $92.20, and still has a strong dividend yield of 4.9% following cutting its quarterly dividend from 0.625¢ to 0.40¢.

General Mills (GIS) has rebounded significantly from its December 2018 low but is still 5% below the 5 year moving average, has corrected 28% from the highest monthly close in the last 5 years of $71.89, has increased its dividend for 15 calendar years in a row, and has a dividend yield of 3.8% which is 21% greater than its 5 year median of 3.1%.

Kellogg (K) is 16% below the 5 year moving average, has corrected 31% from the highest monthly close in the last 5 years of $82.71, has increased its dividend for 14 calendar years in a row, and has a dividend yield of 3.9% which is 29% greater than the 5 year median of 3.0%.

 

Bristol-Myers Squibb (BMY), which is in the process of attempting to merge with Celgene (CELG), is 19% below the 5 year moving average, has corrected 36% from the highest monthly close in the last 5 years of $74.81, closed at the lowest monthly close in the last 5 years, has increased its dividend for 12 calendar years in a row, and has a dividend yield of 3.4% which is 13% greater than the 5 year median of 3.0%.

 

QUALCOMM (QCOM), a world leader in mobile phone chip production, is 7% below the 5 year moving average, has corrected 29% from the highest monthly close in the last 5 years of $80.45, has increased its dividend for 16 calendar years in a row, and has a dividend yield of 4.35% which is 22% greater than the 5 year median of 3.6%.  As a technology company and with many court disputes ongoing with Apple, QUALCOMM is a little outside my normal area of recommendation but its 4.355 dividend yield and history of steady dividend increase makes it an attractive alternative selection at this price.

 

AT&T (T) received final approval for its merger with Time Warner and has moved up a bit as a result.  AT&T is 13% below the 5 year moving average, has corrected 28% from the highest monthly close in the last 5 years of $43.29, has increased its dividend for 34 calendar years in a row, and has a dividend yield of 6.5% which is 19% greater than the 5 year median of 5.5%.  AT&T has a large debt load due to its merger with Time Warner but it also has a steady, well established cash flow stream to support its dividend going forward.