Hunting for Value

Despite the stock market being near or at all time highs, there is still opportunity to find stocks on sale because they are out of favor, despite no fundamental changes in the companies' businesses. For example, REITs, consumer staples and utlility stocks have been going lower, getting close to 52 week lows.   While I understand the reason for the decline is that interests are expected to rise, it seems to me the stocks have been beaten down more than would be appropriate.  

So I've been buying small amounts of stock in these three sectors.  As usual, I may be early and the stock will be decline further.   However, I do expect the good companies in these sectors to rebound and these stocks also pay a good dividend (3-7%) which is a bonus while waiting.

Stocks I am considering:   Procter & Gamble (PG), Duke Energy (DUK), Phillip Morris (PM) Realty Income Corporation (O), National Retail Property (NNN), Game and Leisure Property (GLPI) and W.P. Carey (WPC).

Disclosure:  We own PG, DUK, PM, O and, NNN.  We may take positions in GLPI and WPC in the next 72 hours.

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This is not financial advice. Please consult a professional advisor.

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