Stock purchasing: Fair or Undervalue

[stewardinlife]

(04-30-2015, 01:51 PM)rapidacid Wrote: Paul,

I'd suggest taking the time to read through this series of articles:

http://www.dividendgrowthinvestor.com/20...estor.html

rapidacid, I went through the link -- it's very helpful.

So, based on the recommendations there is a section in the entry criteria where he says: "The second criterion includes removing companies which trade at a price/earnings ratio of over 20. Even the best dividend paying companies such as Coca-Cola (KO) or Procter & Gamble (PG) are not worth owning at any price..."

Link: Entry Criteria

I checked KO and the P/E is over 25 currently -- So would you say it is okay to pass on purchasing KO presently, and invest in other ones. And maybe once KO's P/E does below 20, consider purchasing?

Thanks.
Paul