Many people define the market broadly as the S&P 500. Very little of my total portfolio is in a S&P 500 index. Its movements up or down have minimal effect on my goals. As a value-based dividend investor, it is in my best interest to have stocks depressed and yields high, at least for the short-term. This provides a choice between worthy investments, unlike the market boom years when it was a struggle to find fairly priced stocks.
Focus On Solid Dividend Stocks, Not The MarketInstead of looking at the market and its direction, investors in dividend stocks should focus on quality, price and ultimate value. Below are several quality 3, 4 and 5 Star dividend stocks selling below their calculated fair value (as of 8/11/09):
- McDonald's Corp. (MCD) - 3-Star - Buy Price: $67.86 - Recent Price: $56.02 - Analysis
- Walgreen Co. (WAG) - 3-Star - Buy Price: $35.79 - Recent Price: $30.74
- Lowe's Companies Inc. (LOW) - 4-Star - Buy Price: $30.92 - Recent Price: $23.26 - Analysis
- Emerson Electric Co (EMR) - 5-Star - Buy Price: $38.34 - Recent Price: $35.97 - Analysis
- Cardinal Health, Inc. (CAH) - 5-Star - Buy Price: $41.49 - Recent Price: $32.90 - Analysis
- Dover Corp. (DOV) - 5-Star - Buy Price: $33.37 - Recent Price: $35.97 - Analysis
Full Disclosure: Long MCD, EMR. See a list of all my income holdings here.
Tags: [CAH] [DOV] [EMR] [LOW] [MCD] [WAG]