My second stock purchase
After General Mills, I purchased my second individual stock on Dec 11th, 2008. This time I chose AEO, aka American Eagle Outfitters. To this day, it remains one of my favorite stocks, even though I’m currently down.
I’ve made six separate purchases of AEO in the last seven months. I realize that the fundamentals of this company haven’t changed, that’s why I choose not to sell. I’m mostly a buy and hold investor.
Why did I invest in AEO stock?
It was undervalued at the time, paid a pretty decent dividend, and my favorite trait-NO DEBT! Today we know that it’s Aerie line is growing tremendously and it just had a fabulous Earnings report.
Unfortunately, like most retail sector stocks, it ‘s fallen out of favor on Wallstreet, The stock has recently dropped to 52 week lows. I must have quite the stomach for investing because i was up over 20% and now I’m down and I haven’t sold one share, nor do I intend to.
AEO was literally the first dividend I received in my brokerage account. A whopping $7.56! It’s where my dividend investing began and at the time I didn’t really know much about dividends.
Currently, the company still looks like pure gold to me. It’s the #2 jean company in America and whenever I’m out and about, I still see their stores full of people.