Sunday, September 16, 2012

What stocks to buy now when thinking about dividends


Thinking about what stocks to buy now is something that all of us do. I was recently looking into MCD or Mcdonalds stock I noticed that it had over a 3% dividend yield so I began thinking about buying it. The problem I have is the current P/E ratio is a bit higher than some of the other options I was looking into. One of my all time favorite food stops has been Wendy's but looking into The Wendy's Company(NASDAQ:WEN) I noticed that they just aren't earning enough money to make me comfortable with investing at this time. Their dividend situation looks like this Div/yield 0.02/1.75 while their EPS is 0.03 and I just can't feel comfortable buying into that situation at this time.

Now if I was a very rich man with money to gamble perhaps I would invest with them but when I am looking at what stocks to buy now I want good performers in this time. I want companies that are performing well right now. One of the companies I have had my eye on lately is Target Corporation (NYSE:TGT) which is currently trading at 64.67 with a P/E ratio 14.80 with an EPS of 4.37 plus it has a fair dividend at Div/yield 0.36/2.23 which is decent but not remarkable.

Some of the best stocks that you can buy are companies that you actually buy from on a regular basis. They are companies that you truly believe will be around for the long run. I found that when I thought about buying Walmart stock which is currently trading at 74.50 with a dividend yield above 2% but still I don't think I am ready to buy them at that price. Mostly because of the small dividend and the fact that I think I may be able to buy it a little bit cheaper.

When it comes to buying stocks that we can hold for a while we want to get the highest dividend yield while being safe about it. I like to buy General Electric Company(NYSE:GE) while it's currently above 22 dollars per share it still have over a 3% dividend yield and is totally worth buying. I mean can you think of a company with a longer history of making good money? It seems like a good dollar cost averaging play to me and that's why I have bought it a number of times in the past.

What stocks to buy now? has me thinking about Alliant Energy Corporation (NYSE:LNT) which is paying over 4% dividend yield and looking like a company that can consistently produce solid earnings. I enjoy companies that have a history of paying their dividends and that is usually what I go by when looking into companies that I may invest in. Investing is a crucial step in financial independence and if you prefer working for yourself over someone else this is a good way to move in that direction.

So if you are wondering what stocks to buy just make sure that you do as much research as possible. Look into big companies that you know and believe in such as Target or Walmart. Those are the types of companies that will be sticking around for a while and will continue to produce big money and stability.

1 comment:

  1. Such a helpful article. this has been a great source for me, when I was facing hard time planning to do some investment.

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