Dow 7200 - What to Buy

Helping to manage several Investing forums I am constantly getting emails from members wondering if and when they should start considering the purchase of stocks.  The Dow is at 50% of where it was at its peek just a couple years ago.  That means if the market goes back up to it's highs, whether it be 1, 2, 5, or 10 years, an investment today would mean doubling your money, plus whatever you get with dividends.

There are some great dividend stocks out there paying 5-10% returns.  These companies are also fairly safe, and probably will not be reducing their dividends unless we have an economic catastrophy:

BP - 8.36% dividend.  A solid oil play

PPG - 6.5% dividend.  Protective coating manufacturer

INTC - 4.5% dividend. Pretty much the only computer chip maker besides AMD. Growth Stock as well.

I like dividend stocks in markets like this because even if the market goes down further, you are still earning a solid return.   The stocks pay you to hold them, so you will be earning while you wait for the equity in the stocks to go up.

I personally think we have at least coem close to a bottom here, and things will slowly pick up in the equity markets.  As always, be cautious though.

For more Stock info check out the following links:

Stock Talk Forum

Personal Finance Forum