A line you'll often hear is that the stock market is only for the rich people and the working class joes and janes out there can't do anything about it. Looking at the stock prices for some of the companies, you can see why people get that impression. Some companies have shares going for hundreds,if not thousands of dollars. From a distance, it's a tad absurd.
However, if you start to do some digging, you'll start to see that not every company stock has such a lofty price tag. There are plenty of companies out there with share prices that are much more friendly to the working class. Now, a low price tag can be a warning sign that the company is in dire straits; this is true, but smaller companies can have a lower price tag and still deliver strong returns. I thought it would be a good idea to throw some names out there to get people started.
Now, I should note that these aren't "picks" in the traditional sense. I'm still a relative rookie and there are plenty of other bloggers who are much more well versed in the mechanics. These are, however, stocks that I own and have worked out in my favor so far. Could things change? Of course, especially in this environment, but they've held up pretty well so far despite the headwinds. In any event, let's get to them.
1. Flowers Foods (FLO)
At $22 bucks a share as of this writing, this company is a very easy buy. They make and deliver a variety of breads. I see their crates in my store all the time. Not only is the stock higher than where I bought it, but I've seen a couple of dividend increases since I first bought in. Even in the age of Corona, the payments have held steady, which is always a welcome sign.
2. Franklin Resources (BEN)
Another company who's stock is currently sitting in the low $20 area. They offer financial services and are a dividend aristocrat. While the pandemic is unlike other bouts of economic turbulence, the record gives investors a degree of confidence that they are built to withstand such things.
3. Wendy's (WEN)
For such a big name, this stock is in the same range as the two companies listed above. It's surprising to some extent, but if jimmy wants to crack corn, I don't care. They did recently cut their dividend due to Corona based challenges, but they were one of the stronger raisers before the madness started. In any event, the stock price is higher than when I bought it, so it still seems like a strong buy in my neophyte opinion.
4. Kroger (KR)
At $35 a share at the time of this writing, this company is a little bit more expensive, but still very much attainable. Not only has Kroger held up, but it seems to have thrived in the new age we live in. Grocery stores are critical, so it makes sense. Not only have they kept their dividend increase streak alive, but the stock is higher than it was when I bought it. Growth is always good.
5. AT&T
This one has been very popular among the DGI community as of late. This dividend aristocrat sits at around $30 a share. They not only have a long record of increases, but also a pretty strong yield to go with it.
So, there you go. 5 companies may not seem like much, but it's enough to get the ball rolling on a new portfolio for the rookie investor on a budget. Not only that, but reinvested dividends have that much more power as they get you more fractional shares to get that snowball rolling.
No comments:
Post a Comment