Four Value Priced Stocks: Sysco, Eli Lilly, PepsiCo and Johnson & Johnson

Recent gyrations in the market have caused more than one investor some heartburn. Each day I hear disgruntled comments due to losses and see many people looking for an out.

Ryan Detrick, senior technical strategist at Schaeffer's Investment Research said:

The fact is people are scared and the only thing they're doing is selling. Investors are cleaning out portfolios and getting rid of everything because nothing seems to be working.(a)

As a dividend and value investor, these are the times we live for - value priced stocks and golden dividends.

Below are four stocks that recently dipped below my target buy prices (before adding any quality premiums; yields, closing prices and, NPV MMA Diff. are as of 10/06/2008):

Sysco Corp (SYY) - 2.96% yield
Buy Below: $32.62
10/06 Close: $29.41
NPV MMA Diff: $21,180
I last discussed SYY on August 28, 2008 when it's yield was 2.79%.

Eli Lilly and Co (LLY) - 4.55% yield
Buy Below: $42.97
10/06 Close: $38.42
NPV MMA Diff: $6,922
When I last discussed LLY on September 23, 2008, it was trading at $46.69 with a $45.12 buy below price (including a 5% quality premium).

PepsiCo, Inc. (PEP) - 2.46% yield
Buy Below: $70.61
10/06 Close: $66.64
NPV MMA Diff: $5,155
PEP was last reviewed on May 24, 2008 and was trading at $68.26 at that time.

Johnson & Johnson (JNJ) - 2.78% yield
Buy Below: $67.70
10/06 Close: $64.50
NPV MMA Diff: $3,766
I last discussed JNJ on August 28, 2008 when it's yield was 2.60%.

Fear, panic and market meltdowns are good for the long-term investor. It provides the perfect circumstances for us to purchase shares in quality companies at discounted prices - if we are willing to seize the opportunity.

As always, you should do your own research and reach your own conclusion before buying or selling any security.

Disclosure: Long in SYY, LLY, PEP and JNJ.

(a) Source: AP via Yahoo Finance

Comments

[Dividend Growth Investor]

I agree with you on all stocks but LLY. I am hesitant on it but not bearish..

[Jake Huneycutt]

I still wouldn't want to touch Sysco. Dine-in restaurants are not going to perform well in the next year or so.

JNJ was a good defensive buy earlier in the year. It basically trades sidewards over a period of time but you can collect the dividends and make a decent profit. However, when the entire market is beaten down and there's value all over the place, why make a "defensive buy" with minimal upside? Though, I guess it would make sense if you're looking for a low-risk investment that will still earn you a decent yield.

[jturano7423]

10/08/08 MDRNA INC(MRNA) WHAT HAPPENED TO THIS STOCK?
IT CLOSED AT $.28 CENTS AFTER A SERIES OF GOOD NEWS RELEASES. WITH MONTHLY EXPENSES FAR EXCEEDING MONTHLY REVENUE, HOW MUCH LONGER CAN THEY CONTINUE TO EXIST? THE MARKET IS CORRECTING AND REACTING TO THE FINANCIAL MESS WE ARE IN AND THAT DOESN'T HELP ALL STOCKS. SO THE TREND IS STILL DOWNWARD AND INVESTORS ARE REFRAINING FROM ANY SERIOUS INVESTING AT THIS TIME. AND IT LOOKS LIKE YEAR END SELLING IS TAKING PLACE RIGHT NOW!
EVIDENCE OF IT HAS TO GET WORSE BEFORE IT GETS BETTER.