Alright, well yesterday was a major sell off, and it looks like today may continue the fire sale. After a run up like the one we had the last 4 weeks, a pullback is to be expected. Having said this I think we are at another buying opportunity. Could stocks go lower? Sure, but they are very cheap. Below are a few stocks that seem very cheap if you are looking for dividends. Keep in mind that a 5+% dividend is paying pretty much double of what a bank Certificate of Deposit is paying, plus you have the upside of the stock to factor in as well if you are a long term investor.
British Petroleum - (BP) - Dividend Yield - 8.64%
Great stock, oil demand will soar once the economy picks up. Also oil is a great way to hedge against future inflation which is all but a sure thing.
Reynolds American - (RAI) - Dividend Yield - 8.66%
They make cigarettes. If you don't see a moral issue in investing in them, go for it. Although there has been an increase in cigarette taxes, people are still buying them. They also have a line of new tobacco products, that are contraversial, but profitable. At 8.66%, this dividend is amazing. Reynolds America is a great stock for uncertain markets in that it usually trades in a less volatile manner.
Intel - (INTC) - Dividend Yield - 3.73%
A technology company, that is growing, yet paying a dividend 1% higher then the average Bank CD? Yep, Intel is by far the leader of computer chip makers. The company continues to expand, and will be back above $20 a share easily once the economy recovers. Intel took a bit of a hit last earnings call when they didn't give specific about the future outlook. I Say, buying opportunity.
As long as you are in the stock market for the long run (at least 2 years) I think you will certainly see substantial gains plus be paid to hold the stocks (via dividend payout) over the next several months and years. I also like some of the bond funds out there that are a bit more risky but pay over 10%.
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