Value Investing News

31 best large cap stocks to buy for 2012 selected for valuation and earnings growth

Have you ever wondered just where are all the get-rich-now infomercial millionaires? I know several people who have purchased one or more of these get-rich-now kits, but I don't know of anyone who actually got rich from purchasing the kit. Warren Buffett and Bill Gates didn't build their fortunes with a get-rich-now kit. They worked hard built it steadily over time.

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This article lists some financially sound stocks with low PE10 and TTM PE ratios inspired by Robert Shiller's Cyclically Adjusted Price Earnings Ratio (CAPE). A simple backtest to 2002 reveals some impressive results.

At some point in the future will we look back at our actions today and refer to them as our greatest missed opportunity? A successful dividend growth strategy takes time. Unfortunately, many income investors don’t have the luxury of time on their side and must focus on high-yield investments to meet current expenses. These high-yield investments are often accompanied by high-risk.

According to Ned Davis Research, $100 invested in all dividend payers of the S&P 500 index in 1972, would have grown to $2,266 by the end of 2009. The same $100 invested in non-dividend paying stocks in the S&P 500 returned a negative 39% over the same period. The performance of dividend payers and initiators was even better, returning $2,945 on the initial investment in 1972.