Well, I don't like to get too much in the job of having stock picks Rachael, or recommending anything
... but yeah, I think it's a good buy right now as a long term investment, as long as the brokerage has the DRIP (
Dividend ReInvestment Program) turned on for the stock. (
Some brokers such as Scottrade don't allow DRIP's). DRIP's are key for myself. They unlock the power of 'compounding interest' in a way.
As far as the U.S. is concerned, this is one of the single largest banks out there, if not
the largest. They are a great when it comes to paying dividends, which is a must for a dividend / DRIP investor such as myself. They've been paying dividends since
1903. They've built a
huge reputation on it. And while they've had some writedowns - those writedowns have been some of the smallest writedowns to date amongst the financials.
In addition, they're trying to purchase Countrywide right now, which has depressed their stock price. Which means that I got it at a bargain.
Now, with the exception of my "Challenge Project" account - I have not really contributed a large percentage of my available cash to the purchase in any of my accounts. So I have plenty of cash left to diversify into other stocks if the opportunity arises.
In addition, I got a lot of negative talk for wanting to buy BAC. Which for me - is a great sign. As Warren Buffett says: Buy when everyone is fearful. I've let some time pass (
I already own BAC from - I think it's the low $40's) to let all the fear
play out, and then swooped in once the fear had already been priced into the stock, and I started to see some a few technical reasons to get involved.
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