Discover looks attractive to me--so much so that I recently bought some more. Prior to word coming out about some regulatory trouble, I had decided to build up a decent position in Discover over the next few years. I'm nearing retirement and income stocks have an appeal. Discover had a relatively good dividend, well-covered, and a long history of growth. Plus I've been a satisfied customer for decades.

Then they announced some regulatory troubles and the price tanked. It's lost a quarter of its share price over the past six weeks or so. This leaves it in extreme value territory, with a P/E of 6.2 and yield of 3.1%. I've learned enough to restrain my impulses when things look super cheap. So, having already added, I'll have to content myself with reinvesting dividends for a while.

From the little bit I've seen, the regulatory issues don't look super threatening. But the market seems to disagree. I would welcome others' perspective.

Discover Financial Services FAQ

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