Have you ever read the Back to Basics book series?

They’re books about bushcraft and homesteading. Stuff like building your own house, making your own soap, and baking bread. Fundamental life skills throughout much of human history.

No churning butter in this article. But we are going back to the basics in terms of investing.

That means buying foundational portfolio stocks with low valuations and reasonably high, and sustainable, starting yields.

Without further ado, here are the three stocks I’m buying this month.

1. Aflac Incorporated ($AFL)

A market-beater and inflation-beater that’s back to reasonable valuations after rallying earlier this year.

Insurance firm Aflac has delivered an average annual total return of 15.43% over the past decade. And, the company has consistently raised its dividend every year for the past 42 years. These aren’t token penny-a-year raises, either.

Aflac has a 5-year compound annual dividend growth rate of 14.45%.

At a price to earnings ratio of 15.36, well below the S&P 500 despite consistently outperforming the index, I’m happy adding to my position.

2. Chevron Corporation ($CVX)

Oil bad. Only idiots buy oil stocks. You don’t invest in oil, you trade it.

These are all common criticisms of oil stocks and the energy sector as a whole. And while many of these complaints are valid, I’m still adding to my Chevron position.

Why?

The negative sentiment around oil has also kept oil stocks relatively cheap for decades. And many “Big Oil” stocks like Exxon Mobil and Chevron Corporation have been slow-but-steady compounders because of this.

As The Conservative Income Investor, a fantastic Twitter account, once explained:

Right now, Chevron is paying a 5.00% starting dividend yield while also trading at a price to earnings ratio of 17.74. The stock also has a respectable 5-year compound annual dividend growth rate of 6.14%. Although I don’t expect this stock to deliver market-beating returns, stock picking is also about selecting investments that meet your personal needs.

I like the high starting yield and am happy to reinvest Chevron’s dividend payments so that they slowly but steadily compound into more and more quarterly income.

3. Portland General Electric Company ($POR)

Speaking of investing to meet your personal needs, here’s another 5% yielder with a low price to earnings ratio and consistent dividend growth.

Portland General Electric Company is a regional utility firm that serves 950,000 retail customers in Oregon. The stock’s been in a slump since 2020, and has recently crossed the 5% starting yield threshold.

There’s a local mid-range restaurant where I live that offers five hamburgers, three fries, chicken nuggets, and 1.5 liters of Coca-Cola for $22.

Buying a stodgy utility company that dates back to the 1880’s and raises its dividend by 5% per year may not be for everyone. But, if you live overseas, or live in a low cost of living area, or are retired and looking for consistent dividend income - stocks like this can be a great source of recurring revenue.

At a 5% starting yield, it doesn’t take much to cover many of your day-to-day expenses.

And, these high yielders with decent long-term dividend growth can often meet your financial needs in ways that a tech stock or index fund can’t.

Conclusion

None of this month’s investments are super crazy or obscure. But, there’s been a sell-off in the blue chip stock sector. And many profitable, established companies are now trading at relatively cheap valuations.

High-growth, market-beating Aflac is back on sale.

Chevron, an oil giant that’s consistently raised its dividend every year for the past 37 years, is now yielding 5%.

And Portland General Electric Company - a “boring utility stock” - is offering a 5% starting dividend yield plus a long track record of raising its dividend by ~5% per year.

I’m happy buying all three.

Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.