As prices have declined recently some stocks have begun to move into our target zone. We will be hesitant about adding them at this point, but the lower prices allow us to find some trading floor to play with going forward. Again strike prices we offer here are trading prices, but they also offer good long term entry points.
Phillip Morris...We LOVE Phillip Morris. Fabulous cash flow in a non-judicious environment makes for serious value when the price reaches a certain point. Our strike price of $80 is $16 off their 52 week high. Dividend is close to 4.5%.
Coca Cola...This company had a bad quarter and is seeing some sell off in this long term growth stock. Did you know that about 40% of their sales are juice drinks? KO has transitioned nicely to more health related beverages and I really like their steady eddie dividend at almost 3% and a strike price of $35.
VZ...The impending buy of the remaining 45% of the Verizon Wireless unit from Vodafone is a good buy in our opinion. With low interest rates now was the time to strike, despite what most believe to be a higher price than needed. However the huge cash flow is now all Verizon's and one can expect it to be put to work buying back shares and raising dividends, which they just did for the dividend. Strike price $42 would get you in at 5% payout which is rock solid.
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