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.

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Top 5 Dividend Aristocrats with Low Debt to Equity Ratios

Recently, we saw the ugly side of debt.  As we all watched Kinder Morgan’s stock fall and wait for the final, inevitable sword of a dividend increase, there was one thing that became evident…KMI’s debt level was too high and the results were unsustainable in the current market environment (See Lanny’s awesome write up/analysis about KMI from earlier in the week).  The pressures mounted and management plus the Board of Directors decided to slash their dividend to preserve cash flow for capital expenditures and cover interest/dividend payments.   While debt isn’t a bad thing, I don’t want you leaving this intro thinking that’s my conclusion, runaway/uncontrolled debt can present many problems.  The name of our game on this website is investing in stocks with a growing dividend income stream, so we try to avoid companies and stocks that take us off of this course.  Which is very ironic considering that Lanny and I purchased shares in KMI just under a month ago (here and here) With the wound from KMI still fresh, I wanted to run a stock screener and identify several Dividend Aristocrats with low debt levels.  Check out our newest installment of our Top 5 list series (foundation stocks and low dividend yield/high dividend growth rate stocks)….the Top 5 Dividend Aristocrats with Low Debt to Equity Levels.

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