Best of the Week
Most Popular
1.What Happened to the Stock Market Crash Experts Were Predicting - Sol_Palha
2.London Housing Market Property Bubble Vulnerable To Crash - GoldCore
3.The Plan to Control ALL Your Money is Now at Advanced Stage
4.Why Gold Is Set For An Epic Rally This Spring - James Burgess
5.MR ROBOT NHS Cyber Attack Hack - Why Israel, NSA, CIA and GCHQ are Culpable - Nadeem_Walayat
6.Emmanuel Macron and Banking Elite Win French Presidential Election 2017 - Nadeem_Walayat
7.Trend Lines Met, Technical's are Set - US Dollar is Ready to Rally (Elliott Wave Analysis) - Enda_Glynn
8.The Student Debt Servitude Sham - Gordon_T_Long
9.Czar Trump Fires Comey, Terminates Deep State FBI, CIA Director Next? - Nadeem_Walayat
10.UK Local Elections 2017 - Labour Blood Bath, UKIP Death, Tory June 8th Landslide - Nadeem_Walayat
Last 7 days
SPX/NDX/NAZ Hit New All-time Highs - 27th May 17
GBPUSD Top in Place, GOLD Price Ready to Rocket? - 27th May 17
Silver Mining Stocks Fundamentals - 27th May 17
BBC Newsnight Falls for FAKE POLLS, Opinion Pollsters Illusion for Mainstream Media to Sell - 27th May 17
UK Local Election Results Forecast for General Election 2017 - 26th May 17
Stock Market & Crude Oil Forecast! - 26th May 17
Opinion Pollsters UK General Election Seats Forecasts 2017 - 26th May 17
Bitcoin and AltCoins Crypto Price Correction - 26th May 17
Bearish Head and Shoulders in EURUSD? - 26th May 17
SELL US Stocks - Massive Market CRASH WARNING! - 26th May 17
EURGBP: A Picture of Elliott Wave Precision - 26th May 17
Credit Downgrades May Prompt Stock Market Capital Shift - 26th May 17
Rosenstein and Mueller: the Regime Change Tag-Team - 25th May 17
Stock Market Top - Are We There Yet? - 25th May 17
Should I Invest My Fortune in Gold? Inaugural Lecture by Dr Brian Lucey - 25th May 17
USD/CAD Continues Decline - 25th May 17
Bitcoin Price Goes Loco! Surges through $2,500 Despite Unclear Fork Issues - 25th May 17
The US-Saudi Arms Deal - Sordid Saudi Signals - 25th May 17
The No.1 Commodity Play In The World Today - 24th May 17
Marks and Spencer Profits Collapse, Latest Retailer Hit by Brexit Inflation Tsunami 2017 - 24th May 17
Why Online Trading Platforms Are Useful for Everyone - 24th May 17
The Stock Market Will Tank Hard - 24th May 17
It’s Better to Buy Gold & Silver When It DOESN’T Feel Good - 24th May 17
Global Warming - Saving Us From Us - 24th May 17
Stock Market Forecast for Next 3 Months - Video - 23rd May 17
Shale Oil & Gas Production Costs Spiral Higher As Monstrous Decline Rates Eat Into Cash Flows - 23rd May 17
The Only Metal Trump Wants More Than Gold - 23rd May 17
America's Southern Heritage is a Threat to the Deep State - 23rd May 17
Manchester Bombing - ISIS Islamic Terrorist Attack Attempt to Influence BrExit Election - 23rd May 17
What an America First Trade Policy Could Mean for the US Dollar - 22nd May 17
Gold and Sillver Markets - Silver Price Sharp Selloff - 22nd May - 22nd May 17
Stock Market Volatile C-Wave - 22nd May 17
Stock Market Trend Forecast and Fear Trading - 22nd May 17
US Dollar Cycle : Deep Dive - 21st May 17
Bitcoin Breaks the $2,000 Mark as Cryptocurrencies Continue to Explode Higher - 21st May 17
Stocks, Commodities and Gold Multi-Market Status - 21st May 17
Stock Market Day Trading Strategies and Brief 20th May 2017 - 21st May 17
DOW Needs to Rally Big or Correction is Next - 20th May 17
EURUSD reaches DO or DIE moment! - 20th May 17
How to Get FREE Walkers Crisps Multi-packs! £5 to £28k Pay Packet Promo - 20th May 17

Market Oracle FREE Newsletter

Why 95% of Traders Fail

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

© 2005-2016 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

Catching a Falling Financial Knife