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Practice Knife-Catching With These Undervalued Dividend Stalwarts

Published Thu, 19 Mar 2020 09:03:29 -0400 on Seeking Alpha

Timing the bottom of the market is as impossible as timing the top of the market. What's more reliable is sticking to tried-and-true value investing.
For those who, like me, went into this bear market with a significant cash position, there are ample high-quality dividend stock buying opportunities out there.
Neither the coronavirus nor the mass quarantine reaction to it will last forever. There will be a future for us after COVID-19.
Now is the time to wade into the market by buying the companies that will survive and thrive in the post-coronavirus world.
I humbly suggest five themes: Going where insiders are buying, picking up some fast food, calling on telecoms, coming home to apartment REITs, and shopping for grocery-anchored retail centers.
Introduction: To Catch A Falling Knife
In September 2019, I wrote an article titled "The Rich Are Hoarding Cash, And So Should You." Indeed, all through last Fall, I advocated establishing and maintaining a decent cash position of, say, 15-20% of one's investable capital. As the market kept going up and up and up, this advice began to seem more and more and more unreasonable. In mid-February 2020, if someone had abided by my suggestion, one might well have felt embittered at the missed opportunities. There are always some who criticize the seemingly tinfoil-hat nature of calls for raising cash when times are unsustainably good.
But how many of those people sold at the top in mid-February? If they didn't sell at the top, how are they any better off than those who trimmed positions in September 2019 in order to raise some cash?
And now that I and many others are putting capital to work by buying stocks, another crowd of naysayers have come along proclaiming, "Don't try to catch a falling knife!" What searching wisdom!
These folks either (1) sincerely believe that they have the unique ability to put 100% of their dry powder into the market at the exact bottom or (2) they would rather wait until it... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
PLAINS ALL AM. PIPELINE 21.20   5.3 3.99 1.44 6.75
ENTERPRISE PRODUCTS 28.68   12.4 2.31 1.76 6.13
WILLIAMS 24.29   303.6 0.08 1.52 6.12
AT&T 38.38   16.1 2.38 2.04 5.43
URSTADT BIDDLE PROPERTIES 18.43   28.8 0.64 0.98 5.33
KINDER MORGAN 20.42   20.6 0.99 1.00 4.94
ONEOK 73.93   24.6 3.01 3.56 4.84
EXXON MOBIL 71.98   17.3 4.15 3.48 4.83
URSTADT BIDDLE PROPERTIES 24.28   37.9 0.64 1.10 4.70
VERIZON COMM 60.43   15.8 3.83 2.46 4.04
FEDERAL REALTY INVESTMENT TRUST 135.76   40.4 3.36 4.20 3.00
MID-AMERICA APARTMENT COMMUNITIES 128.66   62.2 2.07 3.84 3.00
ESSEX PROPERTY TRUST 324.02   52.2 6.21 7.80 2.43
YUM! BRANDS 113.27   27.0 4.19 1.68 1.46
CHENIERE ENERGY 64.10   0.0 0.00 0.00 0.00

PLAINS ALL AM. PIPELINE - PAA
PLAINS ALL AM. PIPELINE - PAA  


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