As a long-term dividend investor I love buying blue-chip companies when they go on sale and there is no underlying fundamental business reason. If you can buy a Ferrari at the price of a Camaro, most people would consider that a good thing, but for some reason many long-term investors fret whenever there is a major clearance sale on the stocks they want to own.
I keep a list of great stocks that I would love to buy or add to my current position. Here are a few on that list:
Automatic Data Processing, Inc. (ADP) | Yield @ Buy Price: 3.57%
Buy Price: $38.11 | Recent Price: $41.80 | Premium: 9.68% | Analysis
International Business Machines (IBM) | Yield @ Buy Price: 2.18%
Buy Price: $119.11 | Recent Price: $131.19 | Premium: 10.14%
Pepsico, Inc. (PEP) | Yield @ Buy Price: 3.04%
Buy Price: $59.28 | Recent Price: $66.07 | Premium: 11.5%
Genuine Parts Company (GPC) | Yield @ Buy Price: 4.68%
Buy Price: $35.04 | Recent Price: $41.25 | Premium: 17.7% | Analysis
Eaton Vance Corp. (EV) | Yield @ Buy Price: 2.59%
Buy Price: $24.67 | Recent Price: $32.80 | Premium: 32.93%
If the market drops, there is no need to panic if you are a long-term, buy-and-hold investor. While others are content to give away their stocks, I will pull out my wish list and see if any of my targets ready for harvesting.
Full Disclosure: Long ADP, PEP, GPC. See a list of all my income holdings here.