The market sell off that many anticipated has arrived and we are likely in for a rough ride for 2016. I am convinced that value investing is still a valid investing option. I look for companies that:
- Have a product or products that consumers will buy!
- Are earning income
- Have a solid track record even in difficult times.
- Have low or moderate P/E scores
- And pay a dividend
- B&G Foods Inc. / Quote: BGS | Comment: My wife buys their products at the grocery. 4% yield.
- Diebold / Quote: DBD | Comment: Leader in banking technology. 4.5% yield.
- Edison International / Quote: EIX | Comment: CA electric utility. 3.2% yield.
- Royal Bank of Canada / Quote: RY | Comment: Stable money-center bank w 4.8% yield.
- Johnson & Johnson / Quote: JNJ | Comment: Stable dividend payer at 3% yield.
Image source. My own philosophy is to buy a stock that one can hold onto through market swings. If that company can be profitable and will distribute a dividend through tough days, it is a valuable investment.