It's amazing how quickly your perspective can change once you get rid of your losing stocks.

This week I got an email from Eric H. with some great news...

"Zach, I finally let some very underperforming stocks go, as painful as it was. None of them paid a dividend so I would like to put that money to work in one of the three portfolios you keep. Any help would be appreciated.

I look forward to your emails each week. You're doing a great job, keep them coming!"

Today we're going to look at a few of the best investments you can make that will set you up to profit from this bear market environment.

Congrats on Taking Your Medicine!

The first thing I want to say to Eric — and many of our other readers — is well done! 

Seriously, well done. Getting rid of positions that are trading lower can be extremely difficult.

It seems like our instincts scream at us to hang on to them and hope that they move higher. And as Eric mentioned, selling losing positions can be very painful.

But there can also be a great sense of calm and clarity that comes after you've let those positions go. 

And that clarity can help you come up with much better ideas for growing your wealth in the weeks and months ahead.

So you're already one step ahead of the game, Eric.

And for anyone else who is still on the fence about selling their speculative stocks, I'd encourage you to use any market rebound to move out of expensive stocks of companies that don't earn great profits...

And then use your cash for better opportunities that will work in our current situation.

Speaking of what works in today's market, let's take a look at some of the best stocks I'd suggest buying right now.

Dividends and Value Are Your Key Priorities

At the risk of sounding like a broken record, I need to remind you that value and dividends are your best friends in today's market.

Value simply means that you're getting more company profits for every dollar you invest. Investors measure this by taking the stock price and dividing it by the earnings per share of the underlying company.

This is knowns as the "price/earnings ratio" (or PE for short). And the lower the PE, the less you're paying for every dollar of profit.

When you're picking out new shares, make sure you buy stocks with a low PE. 

This varies by industry but a PE below 20 can be healthy — and below 10 can give you a great value. 

Just remember to make sure the company is healthy and will continue to generate profits.

You should also lean toward stocks that pay healthy dividends.

Dividends give you extra cash typically paid to you each quarter. And that cash can be especially helpful in today's market.

If you're already retired, the cash can help cover your day-to-day expenses.

And if you don't need the cash right now, that's even better! 

You can use this extra cash to spend on new shares. And now that the market has moved lower, you're able to buy each new share at a discount.

So make sure you're paying attention to both of these important considerations as you put your investment money to work.

A Few Favorite Plays For Right Now

Eric mentioned "three portfolios" that he's considering for new investments.

He's referring to different categories of stocks that I recommend as part of my Lifetime Income Report dividend newsletter.

While I can't give personalized investment advice, I can suggest some of my favorite dividend plays for today's market. 

Hopefully, these plays can help you profit despite the challenges in today's market.

The first stock I'll highlight is BP PLC (BP). This is the former British Petroleum.

Shares of BP have held up well despite the market pullback. That's because energy has been one of the bright spots, and BP is one of the leaders in this area.

The company produces about 1.1 million barrels of oil per day, along with 6.5 billion cubic feet of natural gas. 

These resources are becoming all the more valuable as the global economy reopens and as supplies from Russia are cut.

You can buy BP for about 4.6 times next year's expected earnings, which is dirt cheap! 

And the stock also pays you a 4.2% dividend yield so you'll collect plenty of cash from this profitable company.

Second, consider shares of Raytheon Technologies (RTX). The aerospace and defense company is known for its Pratt and Whitney engines as well as its missile and defense systems.

This stock is a bit more expensive with a PE near 19. 

But that's still cheaper than many of the speculative tech stocks that have been under so much pressure. 

Plus, as countries ramp up defense spending to protect against Russia and other threats, RTX profits should grow.

The company pays a 2.4% dividend yield and recently pulled back to give you an attractive entry point.

Finally, I'll mention shares of Avnet Inc. (AVT). This tech stock is unlike many of the more speculative plays because the electronics company generates a ton of profit.

Today, you can buy shares for about 6.9 times expected profits for next year. So you're getting plenty of value. 

And AVT also pays a 2.2% dividend yield, giving you a bit of extra cash while you're waiting for the stock to trade higher.

Best of all, AVT recently hit a 52-week high. This tells me that investors are enthusiastic about the company's prospects, which is a refreshing outlier in today's more pessimistic environment.

Of course, there are many other great dividend stocks you can invest in right now. But these three are particularly attractive in today's turbulent environment.

I hope these ideas are helpful. And I really appreciate the emails you have been sending me this week. So please, keep them coming!

Here's to living a Rich Retirement,

Zach Scheidt
Editor, Rich Retirement Letter
RichRetirementFeedback@StPaulResearch.com