Last month we screened for strong dividend paying stocks that are poised for growth and narrowed it down to 6 picks. I added to positions last month in all six. Here we will review how those stocks did in the month of October and how good our screener and our charting analysis was. Click here to read that article.
The stock screener gave us a list of 15 stocks which I narrowed down to 6 based off of the attractiveness of the chart and my general comfort with understanding the company. We picked AT&T (T), Amgen (AMGN), 3M (MMM), Walgreens Boots Alliance (WBA), Realty Income (O), and Coca-Cola Co (KO) for the month of October 2021.
From the date the article was published through to the end of October 2021, the picks averaged an increase of 1.08%. Realty Income (O) had the greatest increase of 6.58% and AT&T (T) had the greatest decrease of 5.64%. (Also, keep in mind I had not released my stock picks for the month until the 9th of the month, so I’m hoping with doing this for a full month now, the picks for November will have more time to play out.) Let’s review each stock and see how well our approach went.
AT&T was the big loser this month. I am down 4.25% on it. T was coming to a long-term support area around $26.75. It broke that support this month and is currently priced at $25.26. The prediction didn’t play out as planned, however if you waited for a bounce as recommended, you’d still be set up and ready to pull trigger on cheaper shares. I see another support are at $24, will watch closely to see if it holds or breaks yet again.
Amgen was a small loss for me at 0.34% but could have been a 4% winner for the month if you caught the dip down to $201. AMGN was sitting at a support level for the third time since the pandemic. It dipped to just above $200 and bounced a little bit where it is still sitting at that support with a current price of $206.97. So not much has changed with the setup of this position except for the fact that it was slightly cheaper for a little bit this month. If it continues to break lower it has two support zones at just under $200 and ~$185.
3M was a good play, but those earnings messed it up a little. I am up 0.83% on it. MMM has been in a down trend for the past 5 months. At the time of the post, it had a strong week which made it look like the downtrend was losing steam. MMM did go up a little bit, all the way to $184 before coming back down after an earnings report. Gaps up to the $185 area and then the $195 area are still possible, just waiting for confirmation if this downtrend is finished yet or not.
Walgreens Boots Alliance (WBA)
Walgreens was a fun one this week. I ended down 2% on it but at one point it was up 10%. WBA had been in a short term down trend for about a month. Price had pushed the upper limit of the downtrend and also was sitting on a strong support line, it looked primed for a breakout. It broke that trend with strong price movement up after a news headline on 10/14. The news, though it was good news, messed up the price action. I would have preferred the stock to make the break above naturally, but the news forced the play it didn’t have steam. It nearly hit $52 which was the upside level I had called out, but since then it has come back to its price before the breakout.
Realty Income (O)
Realty Income was the star this month with a 6.5% gain. O has stayed within a wide upward trending channel for the last year. Last month shares climbed to the top of the channel and bounced back down slightly in the last couple of days. A breakout would have been awesome, but a rejection has its benefits too. O remains strong and if it comes back down to the bottom of the channel it could be great time to pick up some more.
Coca-Cola did great with a gain of 4.2% since the post. KO broke through the resistance area around $54 and then proceeded to hit the upside that I had called out at +$56. Would love to see this strength continue to push YTD highs above $57.
That’s it for the review! I hope you enjoyed the read and the picks from last month. We are ready to do it again for November. Let’s keep catching us some good dividend growth stocks and build out our portfolio. Each stock bought is one step closer to reliable passive income!
Thank you for reading, and take care.