When the Stock Market Declines It’s Time to Go Shopping!

On Friday, August 23, 2019, after President Trump tweeted several times and upped the tariffs on China, the stock market took a hit; the S&P 500 lost 2.59% or 75.84 points, the Dow dropped 2.37% or 623.34 points, and the Nasdaq lost 3% or 239.62 points.

As DRIP Investors, we look forward to stock market declines and view them as an opportunity to buy additional great businesses—that have paid and raised dividends during wars, recessions and depressions—that have been overpriced or too expensive to purchase in the past. In addition, we can buy more shares of the businesses we currently own at a discount.

Remember, our strategy is to look for DRIPs that have at least a 3% or better yield on the date of purchase; and, have a history of increasing annual dividend payments by 8%-to-10% or more per year.

Only 15 of the 38 DRIP stocks we follow are current buys after Friday’s decline:

·      Exxon Mobil Corp (XOM) - $67.49 per share, dividend yield 5%

·      Weyco Group Inc (WEYS) - $23.38 per share, dividend yield 3.92%

·      Archer Daniels Midland (ADM) - $37.43 per share, dividend yield 3.69%

·      3M Company (MMM) - $155.85 per share, dividend yield 3.58%

·      Walgreens Boots Alliance Inc (WBA) - $49.32 per share, dividend yield 3.59%

·      General Mills (GIS) - $53.63 per share, dividend yield 3.58%

·      International Business Machines (IBM) - $129.57 per share, dividend yield 4.82%

·      Omega Healthcare Investors (OHI) - $40.39 per share, dividend yield 6.57%

·      Qualcomm Inc (QCOM) - $73.52 per share, dividend yield 3.21%

·      Enterprise Products Partners (EPD) - $28.16 per share, dividend yield 6.08%

·      Ameriprise Financial (AMP) - $124.49 per share, dividend yield 3.02%

·      Cardinal Health Inc (CAH) - $42.79 per share, dividend yield 4.4%

·      Cracker Barrel Old Country (CBRL) - $161.28 per share, dividend yield 3.16%

·      AbbVie Inc (ABBV) - $65.97 per share, dividend yield 6.34%

·      Las Vegas Sands Corp (LVS) - $53.11 per share, dividend yield 5.66%

As Finance Professors Rubin and Spaht concluded: “For those investors who adopt ten and fifteen year horizons, the dividend investment strategy will lead to financial independence for life. Regardless of the direction of the market, a constant and growing dividend is a never-ending income stream.”  See Unlock the 4-Doors to Financial Independence, page 53, available from Amazon.com.

Time for some DRIP retail therapy… keep the good times rolling!

Dum Spiro Spero—While I breathe, I hope.

Slainte mhath,

Robert G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.