Brand name American Companies getting crushed

I had a one year CD maturing with Ascencia Bank, however instead of rolling it over for a paltry 3.83% yield I decided to make a list of "name brand" American companies with good dividends and trading at least 30% off their 52 week highs.

Here is the list of some of Americas largest, oldest, and most well known companies that met my criteria.


GM -65% (6.70% yield)

C -63% (6.30% yield)

MER -58% (3.70% yield)

AIG -57% (2.80% yield)

MS -55% (2.60% yield)

M -54% (2.50% yield)

BAC -46% (9.00% yield)

HST -45% (5.40% yield)

WHR -45% (2.60% yield)

MRK -43% (4.30% yield)

HOG -41% (3.50% yield)

BDK -40% (2.90% yield)

IP -40% (4.00% yield)

BMY -39% (6.20% yield)

AXP -36% (1.70% yield)

WTR -36% (3.00% yield)

WY -34% (4.30% yield)

CCL -34% (4.60% yield)

PFE -33% (7.20% yield)

GE -33% (4.40% yield)

WFC -33% (4.90% yield)

HSY -33% (3.40% yield)

MAT -31% (3.90% yield)

23 stocks, total dividend yield = 4.34%

Obviously there were stocks that met the criteria that I chose to leave out due to low dividend yield or too much risk (LEH for example). This list comprised what I felt were the best risk/reward investments.

I will be gradually buying into these stocks as well as a handful of other stocks on my watchlist as they meet the criteria (here are a few that are getting close--WAG, SLE, SWK, VZ, MSFT, CLX).

This is NOT a short term trading portfolio. I know some of these companies have real problems that need to be sorted out and it will take time (I'm also aware that BAC, C, GM, etc may have to cut their dividends).

I will be buying very small increments at a time.

Please feel free to add some names that you feel are quality companies that can start to be nibbled at.

 

Thats why you invest in companies with strong global exposure that don't depend on the US consumer.

 

div. yield at 4.34 and inflation running at 10%

buy this crap? be my guest

 

Already have some on my list (UL, DEO, GSK, SNY, IBN, HNP, etc).

They will be added when the time is right.

 

As opposed to a much lower CD yield where you're guaranteed to lose money to inflation?

 

as opposed to not doing either

 

Hi daddyeaux,

Even if a few of these companies go bankrupt (GM, C), I will lose the same as if I put the money into an index tracking ETF because they will tank the market right along with them.

Also, this portfolio is a tiny portion of my net worth so it's not as if I'm desperately trying to roll a "Yo" at the craps table.

BTW--Where do you keep your "non trading" money? Can't have it all in the market and you obviously hate fixed income.

 

a trillion alone bet against GM, and what CDSs are out there for the rest of the dogs? and who is the counter party and can they pay?

http://seekingalpha.com/article/81885-gm-s-last-fatal-mistake?source=yahoo

 

i really do hate the fixed income market because I think it's the next thing to implode... has to

what's not to see here...

take any western country and look at their street level inflation and their sovereign debt yields way below that

Swiss Francs and gold and silver for me

and lead bullets to protect the gold and silver... as a hedge of course

 

LOL.

I started buying gold in 2004, sold out in 2006.