When assigning the scores to the stocks on my watchlist to identify January’s pick, I ended up with a tie. Both International Business Machines (NYSE: IBM) and Gamestop (NYSE: GME) scored 13 out of a possible 20 points. Before we get to those stocks, I have to mention that, while Corus Entertainment (TSE: CJR.B) beat them both with a score of 15, it is not my official recommendation. I’m not comfortable recommending this stock because of the recent speculation about the future security of the company’s ad revenue. Also, the stock is just 3% above the 52-week low, indicating the price has not yet started to rebound. Having said that, if you can stomach a little extra risk, the stock is currently 36% off the 52-week high and offering a spectacular 12% dividend. Even if the stock price remains flat for a year you would have made 12% in just the dividend income!

Now, to this month’s pick. As I said there was a tie and that’s good for people who like choice. The top stocks are attractive for different reasons. IBM, as always, is still posting excellent earnings and is still priced attractively. The P/E is 13.69 on EPS of 11.98. Truly fantastic! Less exciting is the fact that the current price is only 10% below the 52-week high. Now, if the stock recovered that 10% in 2018 you’ll have made a respectable return to be sure but we’d like to catch stocks when they’re a little more beaten down if we can. Gamestop, on the other hand, is 33% below the 52-week high which is a much better discount but the numbers, while still attractive, are not as good. The stock has a P/E of 5.2 which is exceptionally low but the earnings are only 3.42 per share which puts it well below average on my list. Oh wait! Have I mentioned the Gamestop dividend? It’s 8.5%. Just saying’. And since they started paying a dividend in 2012, the company has raised it every year. Of course, past performance is no indication of future performance.

As a dividend investor, when I find a stock that pays a fat dividend that I can buy at a discount, I can’t say no so Gamestop is my official pick this month. Happy investing!