Stocks to Purchase in a Down Market
With the market falling quickly, now is the time to be purchasing more stocks than ever before. Some of the most stable and secure companies can now be purchased at bargain prices. While I normally invest in mutual funds and biotechnology stocks, I have turned my attention to some of the largest companies in the United States. Large, stable companies are likely to fall more slowly in a down market, rise quickly when the market recovers, and provide me with cash dividends greater than a savings account in the meantime (a great how to be wealthy tip). Here is where I am looking to put my money:
1. Procter & Gamble (PG) - This company is absolutely huge. It's brands include Tampax, Gillette, CoverGirl, Crest, Scope, Lacoste, Bounty, Febreze, Pringles, Cascade, Charmin, Pampers, Swiffer, Dawn, Mr. Clean, Tide, Downy, Bounce, and many more. Procter & Gamble provides many necessity items that Americans will continue to purchase in any market. Currently it pays a dividend of 3.3%.
2. WalMart (WMT) - Walmart now has 8500+ stores in 15 different countries. It is one of the top twenty largest publicly held companies in the world. If you haven't heard of Walmart yet, I don't know what to tell you. Current dividend is at 2.7%.
3. Johnson & Johnson (JNJ) - Another highly diversified company with many subsidiaries that include Band-Aid, Coach, Johnson's Baby, Listerine, K-Y, Nicoderm, One Touch, Neosporin, Sudafed, Tylenol, Aveeno, and many more. This company provides many of the top over-the-counter drugs that Americans will continue to purchase for years to come. Dividend is 3.4%
4. Lowe's (LOW) - Lowe's is the 2nd largest hardware chain behind Home Depot (HD). It serves more than 14 million customers per week. It's brands include Olympic paint, Kobalt tools, and Valspar paint. New home sales are down, but do-it-yourself (DIY) remodeling is at an all-time high. As the economy sinks, people will quit spending at places like Starbucks, but DIY projects will continue strong as Americans learn to cheaply fix household items without professional help. Their prices are hard to beat as well. Since buying a new home, I can't keep up with how many times I've visited Lowe's in just the past year. Dividend currently sits at 2.4%.
5. Fluor (FLR) - This company is involved in energy, government, engineering, project management, and construction around the world. They have large amounts of cash to back-up your investment. This company has recently been hit extremely hard in the stock market, and for a company with so many current projects, it is a steal. Dividend is at 0.7%.
6. Merck (MRK) - This pharmaceutical company owns Fosamax, Singulair, Zocor, and many vaccines. It is one of the top 7 pharmaceutical companies in the world. Current price of the company is nearing its 52-week low. Dividend is 4.2%.
Being rich is about making smart investments. The above 6 companies are a good start.
Posted by Jared at 8/10/2011 4:54 PM 
Categories: Stock Market, Investments
Tags: top stocks stocks to buy now stock market PG finance blog wealth stock walmart johnson procter lowe fluor merck dividend dividend yield dividend stocks how to be rich how to be wealthy
Categories: Stock Market, Investments
Tags: top stocks stocks to buy now stock market PG finance blog wealth stock walmart johnson procter lowe fluor merck dividend dividend yield dividend stocks how to be rich how to be wealthy
Although remodeling seems to pick up in "down times", remodeling one's home always has value. However, I appreciate your overview presented in this post. Also, I really appreciate your approach to the effect that the best to time buy is indeed in a "down" market!
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I was googling the work hours of residents out of curiosity and found a few threads on the student doctor forums. I thought about how tough it was for me to pay attention during lecture and find the will to memorize facts about biochemistry that I didn't find interesting, which partially lead to my bad grades. Then there was my (relative to my classmates) downright average level of intelligence that further lowered my grades. I also thought about my first and so far only full-time post-college job and how tired I was at 3pm when I had only been working since 10am, and knew I'd be heading home at 6pm. Just 8 hours/5 days week was difficult for me.
Aside from your brilliant brain and remarkable work ethic, you also have an immense desire to help others. You work like crazy in a hospital, study like crazy, then instead of (or maybe, somehow, on top of) spending time with friends or wasting time on reddit or youtube or video games, you find ANOTHER outlet for helping people?
I want to learn as much as I can about this. Do you read the news or about politics? Have you learned much history? Are you an angel? What experiences have you had in life that have given you this intense desire to help people you've never even met so much? What is it about people you love so much? I think about pharmaceutical companies doing clinical trials, doing their "restraint procedures" and euthanizations on monkeys and dogs, and I just think "how the hell are we so much better than these animals to where we can do this?" What gives you such a love for your fellow man? Thank you so very much for it! If only more of us were as smart, compassionate, and hard working as you!
But I just don't understand. When you know you have one life to live, and when there's billions of humans on this planet who will mean nothing a thousand or million years from now, why dedicate your life to improving their well being? And there's so many ASSHOLES out there! And so many who bring these problems on themselves! The smokers and drug addicts and obese people you treat, for example. People who ruin the healthcare system by bringing this stuff upon themselves, etc. Sorry for the rant. I just don't understand.
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I'm no angel. I just try to do the best I can. I believe that even small good deeds can go a long way. Politics, news, and history are fun to chat about with friends, but they don't hold my interest. It isn't easy to explain why I love the things I do, but here is my attempt to explain it:
On a daily basis, I get to help people live longer, healthier, and more fulfilling lives. I've helped the homeless find shelter and walked with professional athletes through addiction. I've helped people get back onto television and helped others stay off the news. When someone no longer wants to live, I get to help them find a reason to smile.
As I write this, I have a smile on my face. I love my job.
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Picking individual stocks is a difficult task for a professional, much less for a non-professional. If I recall correctly, it's been demonstrated that throwing darts at a stock listing can be as successful as "knowledgeable" choosing. It's better for individuals to stick with funds and let the so-called experts worry about it.
I agree with the desireability of buying dividend paying stocks. For now, the dividend return is also favorably taxed.
I disagree with one of your comments = high yielding blue chip-type stocks tend to underperform in an up market, not rise quickly as you suggest. The demand caused by the yield tempers volatility in both directions.
SW, CPA
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Picking individual stocks is not easy, but it can be successfully done. If I do enough dart-throwing tests as you claim, at least 1 of them will do better than the experts. I understand your point, but few studies are good studies that actually prove a point without doubt.
I may not have explained my point well enough about blue chip stocks. What I meant was that in a large upswing of the market after a recession, blue chip stocks usually recover quicker. Once the market recovers successfully, it is the smaller corporations that benefit most.
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