Last month we screened for strong dividend paying stocks that are poised for growth and narrowed it down to 3 picks. I added to positions last month in all three positions. 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 19 stocks which I narrowed down to 3 based off of the attractiveness of the chart and my general comfort with understanding the company. We picked Cardinal Health (CAH), Altria Group (MO), and Lockheed Martin (LMT) for the month of November 2021.
From the date the article was published through to the end of November 2021, the picks averaged a decrease of -2.11%. The three stocks averaged an increase of 0.61% before the Omicron variant news which flushed the market at the end of the month, so this review is very much skewed. Let’s review each stock and see how well our approach went.
Cardinal Health (CAH)
CAH went down 3.3% since the start of the month when I selected it as a stock pick. Currently, my position in CAH is down 3.27%, almost identical to the month’s loss. I am down 4.25% on it. CAH broke out of the trend and pushed close to the $52 area as I had called out at the start of the month. However, after the price didn’t push to $52, it declined back below it’s support level $47.50 and made a new 52-week low.
Yikes! Though no one likes a 52-week low, the decrease that we saw was exactly what I had warned about in my watchlist. CAH is still a strong healthcare company and a great hold. It would have been a great add to buy at the new low if you caught it.
Altria took the biggest hit this month with a decrease of 3.33%. Currently, my MO position is down 3.48%. I had purchased some MO shares before it hit my watchlist, so I’ve been holding at a higher cost before it was put into my watchlist. This month, MO continued its downward momentum following its 10% dip last month from a bad earnings report reception. MO dipped to $42.50 before bouncing, right around the support area that I had called out and recommended waiting for.
Lockheed Martin (LMT)
LMT was our best play this month with a gain of 0.30%. My LMT position is down 0.8%, I had purchased LMT share prior to this stock getting on the watchlist. Last month, LMT had a huge dip following an earnings report which I saw as a great buying opportunity. My position was up as much as 3% in the month before the Omicron news. The bottom at $327 that I had called out worked out very well and it pushed higher than the upside of $332 that I had estimated. At its highest, LMT hit $347! However, following the Omicron news, LMT has gone back down to the $330 support area, so it is still in a good buy zone in my opinion.
Overall, the plays mostly worked as planned! But the market towards the end of the month decided it had other plans! So far, my chart analysis for the monthly picks have been pretty accurate! May I should day trade these plays? JUST KIDDING. I would never. All these stocks are long term buy and holds for the purposes of building passive income. We will keep at it and find more good picks for next month. Look for that article later this weekend.