In a recent Bank of America Merrill Lynch (NYSE: BAC) research report highlighted on Business Insider, analysts suggest that, despite the perceived current expensiveness of the stock market, opportunities to buy stocks at decent prices are as ripe as they have been since 2009 when markets began recovering from the financial crisis. They refer to a concept known as “dispersion.” #-ad_banner-#Put simply, “dispersion” reflects how widely market returns are distributed between “cheap” and “expensive” stocks. Or, paraphrasing half of the oldest of Wall Street maxims, investors have plenty of opportunities to buy low. With this in mind,… Read More
In a recent Bank of America Merrill Lynch (NYSE: BAC) research report highlighted on Business Insider, analysts suggest that, despite the perceived current expensiveness of the stock market, opportunities to buy stocks at decent prices are as ripe as they have been since 2009 when markets began recovering from the financial crisis. They refer to a concept known as “dispersion.” #-ad_banner-#Put simply, “dispersion” reflects how widely market returns are distributed between “cheap” and “expensive” stocks. Or, paraphrasing half of the oldest of Wall Street maxims, investors have plenty of opportunities to buy low. With this in mind, I screened for stocks with forward price to earnings ratios (P/E) lower than that of the S&P 500 (currently 17), a dividend yield one hundred basis points or higher than that of the index (1.83%), and operating in a growth industry or market. Here are three solid names I found. AT&T (NYSE: T) AT&T has made the jump from phone company to an integrated media company, and is determined to not only provide a means for content delivery but to own the content as well. In the media business, at the end of the day, it’s ALWAYS about content. Read More