This article originally appeared on The Div-Net July 11, 2011.
With the drop in the market being the talk of the town, it’s not terribly difficult to find value. I could probably put a list of 30 or more stocks that I find particular value in, but I think ultimately you want to stick to your plan. You should always think about allocation, diversification and buying quality on sale.
Here’s a diversified list of quality equities on sale:
Aflac is down over 10% today. It’s trading at a 9.33 P/E ratio. I think this stock is of particular value, as I thought it was already attractively valued in the mid-$40’s. It has a yield of 3.37% at today’s prices, which is unusually high for this company.
Intel Corporation (INTC)
Intel is a tech titan trading at a very attractive valuation. It is also trading in a single digit P/E ratio of 9.13. It has an entry yield 4.21% based on today’s price. This stock is trading below my cost basis, and am strongly considering adding to my holdings.
Chevron Corporation (CVX)
Energy has been getting hammered lately, right along with insurance. Oil has fallen dramatically lately, and that puts a lot of energy stocks on sale. Chevron is trading for a P/E ratio of only 7.91 with a yield of 3.44%. Great long-term holding here.
Abbott Laboratories (ABT)
Health care hasn’t been immune to the downturn and ABT is trading at very attractive values right now. The P/E ratio is a lowly 14.28 and the yield is currently at 4.09%. I really like the long-term prospects of Abbott and it’s one of the stronger companies available in its space.
PepsiCo, Inc. (PEP)
Pepsi may not be the fabulous deal that other stocks on this list are, but it’s a wonderful company that is extremely dominant in the snack food category. It’s trading at a P/E ratio of 15.36 and has an entry yield of 3.42%, which is very attractive for this stock.
There are a number of attractively priced equities out there, and I think this is a phenomenal time to deploy capital, if you have it. We may see further drops in the market, but that would just be an even better time to buy than it already is. I enjoy getting paid dividends in the mean time.
Thanks for reading.