I’m slowly easing back into the investing actively, after taking time off due to my slow internet and review of my investment psychology. With “no rate hike for October” stocks went on upward trajectory, it seems there is no stopping the good times. Recently though, people are getting a bit fidgety that the run is hitting a wall with December rate hike in view. So here with high stock prices, where do we look for low-risk investments?
The first items to look out for are those paying high dividends. They are always attracting money because it gives, well, sure money in the form of dividends. If you check on their stock prices, their dividend yield is nearly 2% to more than 3.5% in this age of zero percent interest that’s a lot! I’m interested in a few that are admittedly not without problems —
Exxon Mobil – has to deal with low oil prices, but nonetheless they make a lot more on refining fuel products. I looked at the last quarter results and the margins for refining have doubled, and potentially continue with yet lower oil prices in the horizon after Iran cranks up their supply.
Apple – people are wondering whether China will take a bite off their earnings. Plus reliance on one product -the 1Phone. Nonetheless, they continue to lead the Tech front with more and more innovative products that is slowly becoming mainstream. Apple Watch wasn’t being celebrated as much but I think people are getting round to it.
JP Morgan – regulators are eyeing increased measures to prevent financial crisis but with the increase in interest rates that will attract more deposits, this is going to be good for banks.
They are also sporting very low PEs which means they are undervalued.