The Market Is Flashing Warning Signals Not Seen in Years. Here’s Why I Just Bought 3 of SCHD’s Dividend Kings.
The stock market is flashing a warning sign. The Shiller CAPE Ratio is approaching 42, its second-highest reading in 150 years (hit right before the dot-com crash). However, instead of selling stocks and going into cash, I’ve been buying companies built to survive moments like these.
Three of my recent purchases were Abbott (NYSE:ABT), PepsiCo (NASDAQ:PEP), and Procter & Gamble (NYSE:PG). All three are Dividend Kings (companies with 50 or more years of annual dividend increases) and top holdings of the Schwab U.S. Dividend Equity ETF (NYSEMKT:SCHD). Here’s why I think they’re ideal stocks to buy at a time when the market is historically overvalued.
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