The Best Stocks to Invest $1,000 in Right Now
The stock market does not go in a single direction; it vacillates between rising and falling in unpredictable ways. That's an important fact investors need to remember when Wall Street slides into a bear market -- because the trend will eventually reverse. In fact, when you step back, bear markets often offer the best entry points into great companies. Hormel Foods (NYSE: HRL) and Medtronic (NYSE: MDT) are great examples of this opportunity today.
I first bought food maker Hormel when its dividend yield was a touch over 2%. The yield today is roughly 2.3%, about where it was when I started buying in 2017 thanks to an 18% price decline from the stock's early 2022 highs. And yet I'm still soundly in the green on my investment. There's no trick here; it's just simple math.
For starters, Hormel's current yield level is toward the high end of the company's historical yield range. That suggests the price is fairly attractive right now since yield ranges often remain fairly steady over time. What's important here is that Hormel has increased its dividend by roughly 50% since I first bought the stock. In order for the yield range, which offers a rough gauge of valuation levels, to remain in place, the stock price has to go up to account for the higher dividend payout.
Source Fool.com
