Best of the Week
Most Popular
1.Is the Stocks Bull Market Over? Dow Trend Forecast into End January 2015 - Nadeem_Walayat
2.Gold and Silver Stocks Apocalypse Now, Bear Market Review - Rambus_Chartology
3.NHS Baldrick Plan to Spread Ebola Across UK - Sheffield, Newcastle, Liverpool, London Hospitals - Nadeem_Walayat
4.Ebola Terror Threat Suicide Bio-Weapons Threatens Multiple 9/11's, Global Plague - Nadeem_Walayat
5.Second-Richest Man Says Mortgages Now a "No Brainer" - Dr. Steve Sjuggerud
6.Gold And Silver Still No End In Sight - Michael_Noonan
7.NHS Baldrick Plan to Spread Ebola Across UK - Sheffield, Newcastle, Liverpool, London Hospitals - Nadeem_Walayat
8.The Gold Bug is Set to Bite Back - EWI
9.How Alibaba Could Capitalize on the EBay-PayPal Split - Frank_Holmes
10.The Consequences of the Economic Peace - John_Mauldin
Last 5 days
Gold Stocks Analysis – FNV, CG, NCM, SBM - 19th Oct 14
Stock Market Primary IV Wave Counter Trend Rally - 19th Oct 14
Gold And Silver - Financial World: House Of Cards Built On Sand - 18th Oct 14
Anatomy of a Stock Market Sell-Off - 18th Oct 14
Why OPEC Has Declared an Oil War on Russia - 18th Oct 14
Gold and Silver Extreme Shorting Peaks - 18th Oct 14
Bitcoin Price Fall to $350? - 18th Oct 14
Tesco Supermarket Crisis Worse To Come as Customers Vanish! - 18th Oct 14
Sheffield Roma Crisis School Place Application's Fraud Perfect Storm - 17th Oct 14
Stock Markets, Commodities and Indicators - 17th Oct 14
“Save Our Swiss Gold ” - Game Changer For Gold? - 17th Oct 14
How to Trade the Ebola Stock Market Sell-Off - 17th Oct 14
When... Not if... Crude Oil Price Drops Below $70 - 17th Oct 14
Either You're The Butcher or You're The Cattle - 17th Oct 14
Gold Benefits from Market Uncertainty - 17th Oct 14
Stock Market Pullback Underway, Euro downside, Commodities - 17th Oct 14
Stock Market Seven Year Cycle and A Correction Ahead? - 17th Oct 14
Three Ways to Play Uranium: Top Stock Picks - 17th Oct 14
America Flirts With Deflation - 17th Oct 14
Why the Fed Should Consider Delaying the End of QE - 16th Oct 14
Gold Prices Since 9-11 - 16th Oct 14
The Inflation Imputation, Dear Saver, May You RIP - 16th Oct 14
Flight To Safety - Gold Rises As Stocks, European Bonds Sink - 16th Oct 14
The March Of History And The End Of Nations - 16th Oct 14
Stocks Bear Markets Move Fast and Are Intensely Emotional - 16th Oct 14
Stocks Got Their Piece – Now It’s Our Turn - 16th Oct 14
Why This Stock Market Selloff Is the Next "Buy the Dip" Opportunity in Stocks - 15th Oct 14
Possible Stock Market Runing Correction - 15th Oct 14
Get Your Tactics Ready for the Ebola Stock Market Event - 15th Oct 14
Secret Scheme To Manipulate Silver Price - Lawsuits Against Banks Proceed - 15th Oct 14
Stocks Bull Market Over? Trend Forecast to End Jan 2015 - Video - 15th Oct 14
Stock Market Dow The Contrarian Play - 15th Oct 14
The Ukraine, As We Know It, Is Gone Forever - 15th Oct 14
We Can Police the Dark Web / Bitcoin - 15th Oct 14
The Safest Stocks in the World - 14th Oct 14
Building an Ark: How to Protect Public Revenues From the Next Financial Meltdown - 14th Oct 14
9 Ways to Retire Rich - 14th Oct 14
Silver, Warfare and Welfare - 14th Oct 14
Swiss Gold Referendum “Propaganda War” Begins - 14th Oct 14
What Happened To The Fourth Estate? - 14th Oct 14
How To Blow Up OPEC In 3 Easy Steps - 14th Oct 14
Investment Myth - Wars are bullish/bearish for Stocks - 14th Oct 14
Powerful Reversal and Shakeout in the Junior Gold Mining Stocks at May Lows Around $33 - 13th Oct 14
When The Economy Went Ponzi - 13th Oct 14
Stock Markets Get Ugly – and May Be Getting Uglier - 13th Oct 14
Cycle Failures Point to a Stock Market Correction - 13th Oct 14
Bill Ackman: I'm not a Crybaby Shareholder - 13th Oct 14
U.S. and World Stock Markets Chartology - 13th Oct 14
Stock Market Intermediate Downtrend Confirmed - 13th Oct 14
Gold and Silver Price To Rally Or Not To Rally - 13th Oct 14
Is the Stocks Bull Market Over? Dow Trend Forecast into End January 2015 - 12th Oct 14
Has Obama Changed His Mind About Syria? - 12th Oct 14
New Zero Bound Only Game In Town - 12th Oct 14
The 5–Year U.S. Treasury Bond is Emblematic of Careless Risk Taking in Bond Markets - 12th Oct 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Stocks Epic Bear Market

The Worry-Free Path to Building Stock Market Long Term Wealth

Companies / Investing 2013 May 06, 2013 - 09:13 AM GMT

By: DailyWealth

Companies

Dan Ferris writes: If you need a safe place to park your savings – and watch it grow for years – the news is filled with what you're looking for...

Last month, one of the world's top technology companies, IBM, announced it's going to raise its dividend payout by 12%, from $0.85 a share to $0.95 a share. IBM has raised its dividend 18 years in a row. It's paid dividends every year since 1916.


IBM is in the class of stocks I've called "World Dominators."

Longtime DailyWealth readers are familiar with these stocks. They are the strongest, safest stocks in the market. They have fortress balance sheets and stable cash flows. They are the market's most reliable source of dividends.

They are the stocks rich investors buy in order to safely get richer.

IBM (NYSE: IBM) didn't just increase its dividend last month. Its board also approved an additional $5 billion in share buybacks.

Buybacks make every share of the business you own worth a little bit more. IBM now has a total authorized buyback capacity of $11.2 billion. At current prices, that's about 5% of its outstanding shares. IBM has reduced its share count by more than one-third since the beginning of 2000.

In total, it's returned more than $150 billion to shareholders since 2000 via buybacks and dividends.

IBM isn't the only World Dominator making the news...

Health care World Dominator Johnson & Johnson (NYSE: JNJ) just raised its quarterly dividend 8.2% from $0.61 per share to $0.66 per share. I first recommended J&J in the October 2010 issue of Extreme Value. It's compounded subscribers' money at about 16% a year since then.

Many investors won't buy mega-cap stocks like IBM and J&J because they think these companies are too big to grow. That's a classic investor myth.

Clearly, you can compound your wealth at market-beating rates with these giants.

Another World Dominator, Coca-Cola (NYSE: KO), is one of the best businesses on the planet. It sells 1.8 billion servings per day of more than 3,500 different beverages. Brand valuation experts at consultancy Interbrand have named it the world's most valuable brand 11 years in a row.

The company routinely earns more than 20% on shareholders' equity. If you could earn 20% on every penny of earnings you retain, you'd get rich pretty fast. Coca-Cola has compounded investors' money at 10.5% per year over the last five years. The S&P 500 as a whole compounded investors' wealth at 2.5% per year during the same time frame.

I could write the same sort of thing about any World Dominator: Huge, global brand... fantastic brand-name value... steady, long-term growth... high returns on capital. It's all there with IBM, Johnson & Johnson... and every other World Dominator.

And if you find a World Dominator that's really undervalued, you can double your money pretty fast. Constellation Brands, the World Dominator of premium wines, is up 126% since our June 2011 recommendation.

Consistently high returns on capital and steady long-term growth are the all-time greatest formula for turning a little money into a lot with little risk. That's the secret rich investors understand.

Extreme Value subscribers and others who bought dirt-cheap World Dominator stocks over the last several years are now reaping the benefits of excellent compounding with relatively low risk.

Should you do the same?

• If you don't want to own a risky bank stock, you should own World Dominators.

• If you don't want to get defrauded by Wall Street again, you should own World Dominators.

• If you'd like more income than the measly 1.7% in government bonds are paying, you should own dividend-paying World Dominators.

• If you don't want to lose money in the next Facebook-type IPO disaster, you should own World Dominators.

• If you don't want to see the purchasing power of your savings evaporate, you should own World Dominators. (They can raise their prices with inflation... and pass the profits on to you.)

Most investors read the news for all the wrong reasons. They're looking for hot tips and entertainment.

Instead, they should adopt the rich investor's strategy. They should be reading the news about the latest dividend increases from the IBMs and Cokes of the world.

They should realize that if they owned these stocks, they'd be on the worry-free path to building wealth over the long term... with World Dominators.

Good investing,

Dan Ferris

http://www.dailywealth.com

The DailyWealth Investment Philosophy: In a nutshell, my investment philosophy is this: Buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price. You see, at DailyWealth, we believe most investors take way too much risk. Our mission is to show you how to avoid risky investments, and how to avoid what the average investor is doing. I believe that you can make a lot of money – and do it safely – by simply doing the opposite of what is most popular.

Customer Service: 1-888-261-2693 – Copyright 2013 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Daily Wealth Archive

© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014