How to Find and Purchase Low Maintenance Stocks

Low Maintenance Stocks are stocks that are purchased when Market prices are low, provide a decent rate of return, and do not require constant monitoring.

The best thing about Low Maintenance Stocks is once purchased, you need not worry about them falling out of favor regardless of the state of the economy.

Instead, your focus is on finding and purchasing them!

HOW TO FIND THEM?
To find Low Maintenance Stocks, identify industries that consistently report profits. Next, identify industries that appear to be weakening. Then, seek out the leading companies in both instances. This will be your area of focus in finding Low Maintenance Stocks.

Look closely at these companies. They are industry leaders that are managing operations in a manner that produces profits and allows dividends to be paid. These companies are prime candidates for Low Maintenance Stocks!

Next, seek answers to the following:
1. Which companies reported profits in a weak and strong economic climate? This is an indicator that the state of the economy has minimal impact on a company's ability to produce a profit.

2. Which companies paid a dividend and, more important, continued to pay a dividend in a weak and strong economic climate? This is another indicator that the state of the economy has minimal impact on the ability to produce profit to the extent that the company is able to payout dividend and not forced to reinvest them into the business.

Once you have answers to the above, you will have found a group of companies that operate at a profit, consistently payout dividends, and are leaders in their industry. Good information to know and keep in your back pocket!

Finally, select companies that have an annual yield that supports your financial objective. As a general rule, pick stocks that have an annual yield that exceeds the yield on your checking and/or savings account.

The end result is a pool of Low Maintenance Stocks that you will purchase when the time is right. This will require you to set aside money to invest so you can purchase them at a moment's notice.

WHEN TO PURCHASE?
As the savvy Investor said, "Buy low and sell high," keep this in mind when you prepare to purchase Low Maintenance Stocks.

Then, watch the Market and listen to the news and stay abreast of current events. Observe how the Market reacts to good and bad news. Watch how your pool of Low Maintenance Stocks reacts to the same news as well.

In doing so, you will be able to estimate when the stock prices of your Low Maintenance Stocks will be lower than normal; therefore cheaper to buy.

All things equal, given no change in the business, the assumption is the price drop was a result of the Market's reaction to current events and not a change affected by the company.

^{FYI: As noted by Wikipedia, stocks that pay dividends typically will drop in price on the ex-dividend date.}

BOTTOM-LINE
Low Maintenance Stocks provide a sense of security by recognizing companies whose past performance and ability to weather good and bad economic climates will continue in the future.

Although there is a risk when investing in any stock, you are reassured that your money has been invested wisely in strong companies that are industry leaders, who consistently produce profits and payout dividends.

^{SUGGESTIONS FOR LOW MAINTENANCE STOCKS
Here are three suggestions for Low Maintenance Stocks - YUM, WEN, WDFC. Although not a recommendation to buy, use them as a starting point in your research.}

SOURCES
Anonymous, "Ex-dividend date." Wikipedia - The Free Encyclopedia