what's a solid stock to buy at $10-$20/share (no tech or oil stocks)?

Question

I'm planning on investing $200 upfront and an additional $50 each month. I like McDonalds but $40 a share is a bit much for me...

Answer 1

I have a couple of suggestion for you to think about. 1. Since you are not talking about a great deal of money being invested at each time I would like you to think about American Funds. They have some excellent funds that have excellent long term track records. Their initial investment requirement is only $250 and then you can add $50 a month. There is one thing you need to know about this family. They have front end loads of about 5.75%. On a $205 investment that would amount to $14.35. On subsequent $50 investments about $2.87 each. If you invest in stocks through a broker, the minimum is $4.00. So your fees with American Funds would be less in the long run. And with a mutual fund you are not putting all of your eggs in one basket. One more thing. Dividend reinvestment does not carry a load.

The second idea would be to invest in several closed end funds. You can purchase as many shares as you like when you like. There are several that have excellent records. They trade and act just like stocks. But with every transaction you will pay a minmum of $4.00 transaction charge. Keep that in mind.

ADX sells at $13.93 a share and has net assets of $16.11 a share. It is like buying stocks at a 13% discount. It invests in large cap stocks so it has not done brilliantly lately but has a ten year annual return of about 8%. ADX allows an investor to reinvest dividends without a transaction charge.

Another of the same kind BQY sells at sell at $16.46 a share with net assets of $18.51. Also invests in large cap stocks. Does not have a very long track record though.

Answer 2

That attitude makes no sense to me. You're planning on investing $200. So what if the share price is $2 or $200. You still invest the same amount of money, right? Besides, you're always better off with a higher share price because it means in general the market respects that company. Just because you can buy more shares does not make a company a good investment, it just makes it more of a gamble. Buy a great company and hold. Oh, and if the company pays dividends, reinvest them - instead of getting a check every quarter, your broker will automatically buy more shares in the company with that money and it doesn't cost you a thing.....

Answer 3

A solid company for less than $20 that is not tech or oil, well lets see the only one with a 5 star rating by the S&P which fit your question would be The FTD Group stock symbol is FTD and is about 15 bucks per share. As long as love is in the air and men get into trouble there will be flowers for sale.

Answer 4

How about Pacific Ethanol (PEIX) at around $17 - does this count as an oil stock? I like the company's prospects, but frankly I really like an oil service company like Nabors Drilling (NBR) at around $31 ( I own this personally).

If you are looking for investment ideas I would suggest http://www.top10traders - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks compare to those of the best investors.

Here are this month's best traders:

http://www.top10traders.com/Top10Standings.aspx

Answer 5

Don't buy stock basic on price... If like McD buy MCD...earning of good. Check out this website www.sogoINVEST.com. SogoInvest focuses on dollar based investing, with the ability to buy a fraction of a share. There are no minimums. This means that you can buy any amount of stock, depending only on what you can afford to invest.
It only cost 3.00 per trade at real time; and no account minimun to open an account.

Answer 6

go to a deep discount brokerage
you don't need to use load funds or pay high fees
especially with the minimum amount that you are investing.

Try some ETFs or close-ended funds for starters
good dividend producers would help offset the fees

a few to look up
USA, IAF, GIM,
a few that are a bit more expensive-OK just buy one or two shares
IFN,RNE, CEE, PEO

or
you could investigate "sharebuilders.com"
or other similiar sites that allow partial share purchases...be aware that fees can eat up your $$$$

Vanguard funds are no load and some have a minimum if you sign up for an automatic payroll deduction...worth looking into..good funds with very low expenses...

good hunting

Answer 7

Stick with a mutual fund or ETF first. If you want to buy McDonalds, go to their investor website and see if you set up a direct reinvestment (DRIP) account. These typically don't charge fees for buying a share of stock.

Answer 8

You should invest in a broad market index mutual fund instead of individual stocks, assuming you don't need access to the money for 5 years or more.