When stock price sinks, dividend yeild rises. So, the best time to buy blue chip stocks is while the price is depressed and collect dividend while the price rises. Look for the following criteria:
Earning growth: Increased earnings for the last 7 of 12 years
Liquidity: at least5 million shareholders and 80 institutinal investors
Strong S&P rating
Long dividend history: at leat 25 consecutive years
Buy at the right price: WHen yeilds are above historical averages. Sell when yeild is below historical average. Typical 5 – 7 years
Bottom Line, Oct 1, 2006
