Which “Always Buy” Stock is Cheapest?

Breaking News!  The stock market had an insane week last week.  Every day was an exciting new chapter.  On Friday, the thrilling conclusion, the S&P 500 closed down 2.38% and this wasn’t even the lowest point of the day.  Bottom line is that there are many great stocks available at a discount right now and investors have been scooping them up left and right.  Heck, Lanny and I were both active as we both added to our stakes in ADM (See Bert’s purchase summary here and Lanny’s here).   With each subsequent red day in the market I become more motivated to add a rock-solid dividend paying company to my portfolio that I can buy and hold till I reach financial independence.   During times like these, I decided to look no further than my list of 5 “Always Buy” stocks to determine which one of these companies is trading at a price that may be too low to resist.

Watch List

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Dividend Impact of a Potential Acquisition for Norfolk Southern (NSC) Shareholders

One of the reasons why I love investing in dividend growth companies is that management has many tolls at their disposal to generate value for their shareholders.   The easiest manner is to announce a share buyback program or a dividend increase, which have minimal impact on the operations of the companies.  However, if management is looking for a larger splash, they can always spin-off a business unit, merge two companies out of no-where (See Kraft) or even sell the company to the highest bidder.   All of these scenarios have different impacts for us dividend growth investors.  Today, I wanted to take a look at one of the rumors that has been floating around for the last couple of weeks and analyze how the move would impact my forward dividend income.  Let’s dove into these Norfolk Southern (NSC) buyout rumors.

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Bert’s Five “Always Buy” Stocks

The last month has been a roller coaster ride in the stock market.  I love waking up in the morning and reading about the pre-markets and the developments that occurred overseas while I was asleep.   Every time I read and hope for a downturn so I can benefit as much as possible as a dividend investor, whether it is from initiating a new position, lowering my cost basis in a stock I already own, or receiving a few extra fractional shares from a DRIP.

A few weeks ago I woke up and there was a sudden decrease in the market. Sadly, I froze….I didn’t know how to allocate my idle cash and it turns out I missed a golden opportunity.  I learned a very important lesson from this experience. Going forward I am going to maintain a list of five stocks that I will always buy.  That way,  I will be able to react instantaneously the next time the market decides to suddenly drop.   After weeks of consideration, I have compiled the first installment of this list.  Did any of the stocks you currently own make the cut?  Let’s find out.

Buying Stocks

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Bert’s Recent Buy – 3M Company (MMM)

Well everyone, Lanny wasn’t the only one on this website to take advantage of the market downturn as he purchased JNJ earlier in the week.   After finishing my recent obsession of building up my stake in IBM a few weeks ago, I began hoarding cash with a new target in mind.  I have been monitoring this company on and off over the last year or so and the recent downturn in the market presented too good of an opportunity for me to continue sitting on the sideline.   Let’s see which stock I purchased this week!

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