Power Maxx Blog

As most of the world is currently aware, we’re currently in what the popular media is calling a global recession. Huge corporations such as Bear Stearns have gone bankrupt, while others such as the big three US automakers, Ford, Chrysler and GM are struggling to stay afloat. Layoffs are reaching record highs, and RRSP and 401k values are plummeting.

Although many would argue that it is not yet a safe time to jump back into equity markets, others such as Warren Buffet, most recently quoted as saying “Be fearful when others are greedy, and greedy when others are fearful,” have been buying up big name companies that have been significantly devalued due to the ongoing global sell of of the stock markets.




I am one of those that tends to agree with Mr. Buffet’s strategy, and have been looking into some of the big names that are suddenly available at once in a lifetime prices. At the end of the day, these companies all have big names, strong balance sheets, and money in the bank - they’re not going out of business any time soon, and their products will be in demand for many years to come.

I personally look for companies that not only pay a dividend, but pay it regularly, and at a high rate. I try to shoot for a 5% dividend or higher. Like investing guru Kevin O’Leary says, “Daddy’s gotta get paid!” And I fully agree. All of these companies are now not only a bargain, but the more their values fall, the higher their dividend yield becomes. This translates into a much greater return on your investment. The only fear in this market is that they slash the dividend, but if they satisfy the criteria I mentioned in the previous paragraph, the chances of that happening are slim.

Now I’m sure you’re all wondering, “Taris, what are some good companies that I can invest in like the ones you speak of?” Well here’s your answer - 5 of my top picks of what many investors will call value stocks in a recession market. Keep in mind these are only my recommendations and I am by no means an investment professional - you should always consult your own investment adviser before making any investment decisions.

Now for the list - drumroll PLEASE!!

1. General Electric - NYSE:GE - 7.72% dividend - 168 Billion dollar market cap
2. Johnson & Johnson - NYSE:JNJ - 3.02% dividend - 169 Billion dollar market cap
3. Caterpillar Inc. - NYSE:CAT - 4.64% dividend - 22 Billion dollar market cap
4. Bank of America - NYSE:BAC - 8.43% dividend - 76 Billion dollar market cap
5. Energy Transfer Partners - NYSE:ETP - 11.4% dividend - 5 Billion dollar market cap

As I said before, these are just recommendations, and by no means an exhaustive list, but during the tough times we’re seeing in the economy, they’re all a very safe place to put your money, and you’ll still get paid while it sits there. HAPPY INVESTING!!

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