With the month of July winding down it's time, once again, to look forward towards the next month and decide which dividend stocks deserve my fresh capital. Looking back at the month of July my buys were more measured compared to my eight June buys. I knew that I could not keep that fervent buy pace up into July, but nevertheless, I managed to make two buys in excellent dividend paying companies that have seen some dramatic price declines in the past month, Dover Corporation (DOV) and The Toronto-Dominion Bank (TD). Going into August I maintain my decision to not add any new positions to my portfolio rather focus on my current holdings and potentially average down my buy price on some great names that have fallen out of favor as of late. With that being said, let's take a look at some of my August stock considerations.

First on my list is Caterpillar Inc. (CAT). A dividend stalwart that needs no introduction, CAT has fallen dramatically out of favor as troubles in China and the energy sector weigh on this cyclical giant. With a current dividend yield sitting around 4% this industrial name is hard to ignore.

In similar vein, another industrial giant that has been taken to the wood chipper and has caught my eye is Emerson Electric Co. (EMR). Another dividend “giant” with aristocrat status, EMR is sitting near 52 week lows and also sports a relatively high dividend yield approaching 4%.

Finally, Dover Corporation (DOV) is another August consideration of mine. A company with a very long history of dividend raises is no doubt feeling a bit of pinch because of lower oil prices as demand for their oil and gas services are weakening in the near term. While not the highest yielding of the bunch, DOV looks a lot more attractive in recent months as valuation is coming more in line with present cash flow.

Of course, no month of potential stock picks would be complete without the mention of my three favorite Canadian banks stocks, The Toronto-Dominion Bank (TD), The Bank of Nova Scotia (BNS) and Royal Bank of Canada (RY). It seems that all five of the large Canadian banks have seen substantial declines in July driving the current yield for all three of these stocks to well over 4%, a yield which is hard to ignore especially since it's well covered by present cash flow. Of course, I always qualify these stock considerations with the premise that Mr. Market may have other plans for my portfolio but more often than not I stick with my list each month.