Thursday, January 24, 2008

Some Long Term Stock Picks

What a better time than to pick some stocks. The stock market is at a low point and this is a great time to get in with some new investments while they are cheap. I hate to say the R-word but these stocks are "recession" proof.

Today's picks are for the long term because, like yourself, day to day checking of stocks maybe difficult (or you have a smartphone feeding you that information). Anyway these stocks are definitely good 1-2 yr+ buy and hold. Which means you can buy and check but keep in mind whatever the day to day action is, they will give you a good return.

My first stock in this mix is Caterpillar (NYSE: CAT). It bottomed out nicely with this stock tumble and this stock is the first stock you should ever buy. CAT is investing overseas and with all the construction going on in China, CAT is profiting. I will not bore you with technicals about CAT but it will also provide you with a nice dividend as well which I always re-invest to keep my shares growing. Don't let go of this stock.

My next stock for your long term portfolio is McDonald's (NYSE: MCD). This might seem like a silly suggestion to buy McDonald's but it is a very good long term stock. McDonald's is everywhere in the world, expands like no company I have seen. They keep their prices competitive to stay profitable in a good and poor market. McDonald's is a great buy and hold stock.

Another pick for you is Johnson & Johnson (NYSE: JNJ). No brainer here as well just like the previous two. JNJ continues to make excellent products some you see and some you might miss. JNJ diversifies into all aspects of heathcare, not just the over the counter medicines you see. JNJ also has a dividend to re-invest.

I have talked about dividend reinvestment in this blog. Most online brokerages (I use E*Trade) have a feature that automatically reinvests the dividend into the stock. Check and make sure yours does as well if you want to utilize the dividend in that fashion.

As a disclosure, I do not own any of the stocks above (doesn't mean I wouldn't want to). If I ever purchase those stocks I will disclose that fact in an update to this post and further posts. If any have specific questions don't hesistate to e-mail me or post a comment.


Ms. M&P said...

Excellent suggestions. I'm going to keep my eye on them :)

Ryan said...


No problem. Remember to buy low. Yes it is a cliche but people see the stock in the green and scamper to quickly buy. The stock market is all about patience.