Should I delve in DG stocks?

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Hey guys, I am new here (for those who don't see the post count first), I am looking for a little bit of advice.

I regularly read DGI blogs from all over and the blogrolls are very convenient. So, first of all, a very big thank you to those who write/contribute/comment on blogs. It makes the whole idea of investing much, much easier.

I work full time earning a good amount for a grad.

I have saved a nice (in my eyes) lump of cash.

I want to start investing in stocks, I have been researching a lot - this is a task which can eat all time around work if not careful - almost addictive.

How should I start off? I am not too keen on ETFs. I was thinking a few staples such as KO, MCD, JNJ. Then REITs such as O, also liking ARCP (since it's merger with cole - possible lising soon in the S&P 500).

Is it better to buy a few solid stocks and keep adding to those positions when they are relatively undervalued, or should I deploy all capital at once?

I am also looking to purchase my first home, I want to save for that too. Right now I am debating stocks vs larger down payment.

I am 21.

Thanks.