You know the types of companies I am talking about. I’m talking about AT&T, McDonald’s, Kraft Foods, just to name a few of the companies that would fit this criteria at the time of writing. Of course I’m not making a recommendation to go about and buy stock in these companies right off the bat, but if you have been asking yourself about the best stocks to buy now, these are types of companies that come to mind.

Slow but steady wins the race when it comes to investing in the stock market and planning for retirement over the long term, and buying stocks that pay a good dividend that you can reinvest into more shares of that stock goes nicely with this plan. It is easy to get caught up in the game of wanting to buy the next hot penny stock available, or trying to rich quick of the next IPO to come out, but a good steady, solid approach of investing in the above mentioned types of companies will do wonders for your portfolio of the long haul.

If possible my suggestion is for you to use a trading platform that will allow you to filter stocks according to the criteria mentioned above when you are looking for the best stock to buy, and find those dividend-paying stocks that seem to be trading at a price much less than what they should be worth right now. Remember that a good company’s stock price can fall simply because for whatever reason there are more people looking to sell that stock than buy it. These kind of stock blunders have a way of correcting themselves, as in the end the companies that people do want to be a part of, the best stock to buy, are from the good solid companies that for whatever reason might just be going through a bad lull in their company history.

It wasn’t my idea

I guess I can’t take credit for the idea then. But I don’t think Tim Hanson can either. I’m sure we are not the first people to come up with the idea of buying stock in companies that seem to be undervalued… isn’t that part of Warren Buffett’s mantra? And to buy stock in companies who give a nice quarterly dividend? Well, who wouldn’t think that some of the best stocks to buy are going to be those that, in addition to growing over time, again because they are undervalued, are also those that are going to give you a decent little chunk of change every quarter that you can withdraw, or preferably reinvest back into more shares of the same stock? It just makes sense.

Great stocks abound

The point here is that you can find good stocks to buy wherever you are looking. There are roughly 3000 dividend paying stocks in the stock market, so that gives you a large base from where you can begin to drill down and look to find those that are from the well established, yet undervalued companies that I was referring to. This to me is a much more sound plan for the long term than trying to get involved in what Is the latest best stock to buy, here today but gone tomorrow type of approach. This is the approach that gets you somewhere in ten years, twenty years, as opposed to only being able to look back and count your never ending per-trade fees because you thought you would day trade your way to millions in a couple of months.

Slow but steady wins the race when looking for good stocks to buy. A plan like the one above, executed over time is sure to increase your stock buying portfolio in ways you hadn’t imagined.

Still, there are few better ways to prepare for retirement and make good money, than buying stocks. To be honest, I think the problem boils down to how people go about buying stock, more so than the simple fact that they buy stock at all. I’ve made mention before that the stock market falling is not bad for everyone. Again, if I’m not just about to retire within the next few years, I don’t want to try and buy stocks when they are at their peak. Knowing that over the time the market his always risen, I would much rather be involved in stock buying when the market is low, getting more bang for my buck and then holding on for the long term.

That being said, I won’t profess to tell you what stocks to buy or even really how to buy stocks at all. I’m no professional. I suppose I can tell you however, how I play a situation like this and what I intend to be doing for the foreseeable future.

It is my personal opinion that when buying stocks the best stocks to buy are those that pay a good, solid dividend (with the idea of reinvesting these dividends), and that these dividend-paying stocks be of reputable companies that have stood the test of time. I’m interested in how some people try to buy penny stocks at six cents per share, hoping it goes screaming up to nine, that’s just not my style. That quick ‘buy stock online’ idea to sell it a few minutes later can be dangerous, and isn’t the sound, long-term investment approach that I’m going for.

Instead, I am looking to add shares of stock of the above-mentioned type of companies, and to continue to buy on dips, such as the severe one most companies saw around the end of 2008. These shares will average out and continue to add up, all the while paying out their fantastic quarterly dividends that will be invested back in for further compounding awesomeness. I truly believe that over the long-haul, that is how to buy stock. There is no need to work your tail off at the stock market, let the market work for you over time when buying stocks.