tshk1221

Blue Chip Dividend Stocks: Five I'm Watching

Of course, it is important to measure the percentage drop of their face stock values since the crisis to check affordability of these great companies. But, due to their steep increase in their market values for the last 10 years, P/Es of, for example, KO and PG are not yet in the range of good buy. KO's net cap rate is still at around 5.6%, and that of PG is 5.9%. With this market volatility in mind, some investors might feel safer and better off with sitting with a bank CD offering 3.5% - 4%. And there are not a lot of strong growth potential for the next 5 years or so in their market values. In addition, buying defensive stocks at this "defensive" period will result in higher, double-jammed buying costs. There are other blue chip companies such as AA, DD, GE and CVX that reached net cap rates ranging from 13% to 22%. These blue chip companies got a lot cheaper than KO and PG and are very likely to show strong rebound and growth in their market values after 5 years or. Dividend-wise, AA, GE and DD excel KO and PG. Which ones to choose? It is up to investors.