The point of a bear market is to bring price-to-earnings (P/E) ratios back down to earth. Preferably into single digits.
I like P/Es under ten because it means that the company at least has a chance to pay us back within a decade. Give me a P/E of eight, a business I’m comfortable with and I’ll happily wait the eight years.
Bonus points if I can get paid to wait, which is where dividend stocks come in.
Thanks to this unfolding bear market, we finally have discounts in High Yieldland. We recently chatted about five cash flowing bargains, and here in just a minute, we’ll discuss another five.… Read more