Buy Some Dividend Payers

I certainly think that you can pick out stocks you like for the longer term, at price points that may be close to the lows that we’ve seen in the last few weeks and layer in there. I would include companies that I think can grow, are already paying a dividend, and have good balance sheets. To me those are Kraft and Honeywell and General Mills.

We have another notable item which is 10 year Treasuries yielding about 2%, which is just so strange right now. And the Federal Reserve is determined to hold rates that low for a couple of years, which is a little scary in what it suggests is their assessment of growth. So, if you can find a stock trading at 11 or 12 times earnings and you can get 3% to 4% in a current dividend return, that’s clearly a good long term investment. Now, I can’t say what’s going to happen over the next year, but that’s clearly a good investment.

Source: Forbes

Related Articles:
- 8 Dividend Stocks With Above Market Performance
- 7 Dividend Stocks For The Ultimate In Deferred Gratification
- Finding Low Risk Dividend Stocks
- Why We Are Dividend Growth Investors
- What Determines A Dividend Stock's Yield