I'm trying to get a diversified portfolio. My current portfolio consists of stocks in these sectors: Telecommunications, Consumer Staples, Healthcare & Consumer Discretionary.
This means my next purchase should be in one of the other sectors. Of course I take into account that I do not want to pay a full price for a stock, so it should be trading close to its 52-low at the moment.
Looking at my watch list, there are just a few safe options to go for: WGL, BMS & AFL.
- WGL Holdings Inc (WGL)
It has been paying dividends for an amazing 162 years. They have been increasing their dividends for 37 consecutive years now. Needless to say, this stock is about as safe as it gets.
So the yield is pretty good and the DGR is average, but the P/E is very high. Not only compared by the S&P 500 but also compared to all other Dividend Champions in the same sector. I'm not a very experienced invester, so I searched for what this high P/E could mean. Several websites stated that 'Generally a high P/E ratio means that investors are anticipating higher growth in the future.'.
This sounds good, but are there any downsides to this?
- Bemis company (BMS)
Seems like this company has average DGR numbers, as well as an average P/E, but the yield is a bit low. I'm not familiar with this company, even tho it seems like it's a multinational, with operations in almost every continent. Any thoughts?
- AFLAC Inc. (AFL)
I feel like this stock is value for money. Due to the low Yen, they had a -5% result, compared to last year. This is probably the main reason the stock went down twice this year. The yield and the P/E are low for this company, but the growth rates looks promising.
Please share your thoughts on these stocks.
Thanks for reading.