Recent gyrations in the market have caused more than one investor some heartburn. Each day I hear disgruntled comments due to losses and see many people looking for an out. “The fact is people are scared and the only thing they’re doing is selling,” said Ryan Detrick, senior technical strategist at Schaeffer’s Investment Research. “Investors are cleaning out portfolios and getting rid of everything because nothing seems to be working.”(a) As a dividend and value investor, these are the times we live for – value priced stocks and golden dividends.
Below are four stocks that recently dipped below my target buy prices (before adding any quality premiums; yields, closing prices and, NPV MMA Diff. are as of 10/06/2008):
Sysco Corp (SYY) – 2.96% yield
Buy Below: $32.62
10/06 Close: $29.41
NPV MMA Diff: $21,180
I last discussed SYY on August 28, 2008 when it’s yield was 2.79%.
Eli Lilly and Co (LLY) – 4.55% yield
Buy Below: $42.97
10/06 Close: $38.42
NPV MMA Diff: $6,922
When I last discussed LLY on September 23, 2008, it was trading at $46.69 with a $45.12 buy below price (including a 5% quality premium).
PepsiCo, Inc. (PEP) – 2.46% yield
Buy Below: $70.61
10/06 Close: $66.64
NPV MMA Diff: $5,155
PEP was last reviewed on May 24, 2008 and was trading at $68.26 at that time.
Johnson & Johnson (JNJ) – 2.78% yield
Buy Below: $67.70
10/06 Close: $64.50
NPV MMA Diff: $3,766
I last discussed JNJ on August 28, 2008 when it’s yield was 2.60%.
Fear, panic and market meltdowns are good for the long-term investor. It provides the perfect circumstances for us to purchase shares in quality companies at discounted prices – if we are willing to seize the opportunity.
As always, you should do your own research and reach your own conclusion before buying or selling any security.
Disclosure: Long in SYY, LLY, PEP and JNJ
(a) Source: AP via Yahoo Finance