Before the start of a new year, I find it useful to spend some time putting together a wishlist of the stocks Id like to buy (or buy more of) in the year ahead. These are not stocks that I will rush out to buy immediately. Instead, Ill wait patiently for attractive entry points, in order to increase my chances of generating solid, long-term returns.
Today, Im providing readers with a look at my wishlist for 2019. These are the stocks Id love to buy next year.
Unilever
Unilever is already the top stock in my portfolio. I see it as a sleep-well-at-night type stock, and I also like the emerging markets growth story. Im not too concerned by the argument that bond proxies will suffer as interest rates rise, because Unilever has a fantastic dividend growth track record. In 2019, Id like to buy more ULVR. However, Id prefer to buy the shares under 4,000p, with a yield of around 3.5%.
Diageo
Shares in alcoholic beverage champion Diageo held up well in 2018. With tobacco stocks out of favour, it was one of the top defensive stocks that investors turned to as uncertainty increased. I already have a small position in Diageo and Im keen to boost this, as I like the emerging markets growth story. However, the shares are just a little too pricey for me right now and the yield is quite low. So Ill be waiting patiently for a pullback.
Reckitt Benckiser
Health and hygiene specialist Reckitt Benckiser is another stock that I have my eye on. I think this is one I might buy sooner rather than later, as its share price has experienced weakness in the last 18 months. Right now, I dont think Reckitts valuation looks overly stretched. However, Im hoping that with a little bit of market volatility, I can pick it up even cheaper, with a yield of 3% or higher.
Smith & Nephew
Joint replacement group Smith & Nephew is another company Id like to own. To my mind, it looks to be a good stock to capitalise on one of the most dominant themes across the globe today the worlds ageing population. Im keen to get SN into my portfolio. Yet right now, its dividend yield of 1.9% looks a little underwhelming. As such, Im happy to wait for a more attractive entry point.
Hargreaves Lansdown
Hargreaves Lansdown is a stock Im quite bullish on. It operates the UKs largest investment platform and its growth in recent years has been impressive. Given that stock markets tend to rise over time, I think Hargreaves looks well positioned to keep growing in the years ahead. HL is certainly not a cheap stock, as its P/E is 28.4. Yet when you consider the companys earnings and dividend growth, I think it deserves a high valuation. Ill be looking to buy more on market weakness.
Croda International
Lastly, another stock that Id like to buy at the right price is Croda International. It makes speciality chemicals for a number of industries including cosmetics, healthcare, and farming. Croda screens up as a high-quality stock. It generates a high return on equity, has low debt, and it has recorded 19 consecutive dividend increases. The stocks valuation is a little high for me right now, so Im hoping 2019 will throw up some more attractive entry points.
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