I love buying on down days. Granted today is another down day and I bought these stocks during yesterday’s down day, but you can’t spend your life trying to time the market. It’s another reason I’m buying quality companies so I won’t care if it goes down a bit before coming back. At least I’m buying companies capable of coming back and often paying a nice dividend along the way. So yesterday I bought:
Dow Chemical – DOW – I bought this stock for my and my wife’s Roth accounts. It’s exactly the same type of stock as the rest I’ve been buying lately. A solid company with a good balance sheet and a rocking dividend (DOW’s is a little over 11% at this writing). Purchase price of $15.20. This will be a long-term hold.
Allied Capital Corporation – ALD – This stock is in my play account. It currently pays an 86% dividend. Yeah, that’s right 86%. However, I expect that to be greatly reduced in the near future. ALD operates as a private equity company doing all manner of business development. It’s a highly regarded company that’s here to stay after some recent restructuring. I bought at $3.10 and plan to sell covered calls on my shares at the $7.50 level once the stock rebounds.