Best of the Week
Most Popular
1.U.S. Housing Bull Market Over? House Prices Trend Forecast Current State - Nadeem_Walayat
2.The Coming U.S. Economic Collapse Will Trigger a Revolution - Harry_Dent
3. Stock Market Crash a Historical Pattern? - Wim_Grommen
4.Global Panic - U.S. Federal Government Stockpiling Ammo – Here’s What We’re Going to Do - Shah Gilani
5.AI, Robotics, and the Future of Jobs - Aaron Smith
6.This is Your Economic Recovery With and Without Drugs - James_Quinn
7.Gold and Silver Price Getting Set To Explode Higher - Austin_Galt
8.The Something for Nothing Society - Lifecycle of Bureaucracy - Ty_Andros
9.Another Interesting Stock Market Juncture - Tony_Caldaro
10.Inflation vs the Deflationary Straw Man - Gary_Tanashian
Last 5 days
Bitcoin Price Might Move Shortly - 2nd Sep 14
Why Brent Crude Oil Prices Won’t Fall Below $100 a Barrel - 2nd Sep 14
3 Important Gold Charts - Transparent Holdings Fall As Bullion Goes East To Russia and China - 2nd Sep 14
NWO Enforcer: NATO Threatens WW III - 2nd Sep 14
"Financialization" Will Ruin America. Unless We Do This... - 2nd Sep 14
Stock and Commodity Market Ratio Messages - 2nd Sep 14
Gold Price - The Thin End of the Wedge - 2nd Sep 14
U.S. Inflation Pressures in Core Food Components - 2nd Sep 14
Independent Scotland Currency, Plan A, B, C or D - British or Scottish Pound? - 2nd Sep 14
Gold and Silver Price A Critical Juncture - 2nd Sep 14
Gold and Silver Precious Metals Complex Contradiction and Potential - 2nd Sep 14
France And The Long-Gone Thatcher Moment - 2nd Sep 14
Stock Market Approaching An Important High? - 2nd Sep 14
Gold, Silver Price Summer Doldrums Coming to an End - 2nd Sep 14
The Ultimate Demise Of The Euro Union - 1st Sep 14
Palladium Price Breaks Multi-Year High Over $900 - 1st Sep 14
When Complexity Becomes Chaos - 1st Sep 14
Designer War By Default - 1st Sep 14
Islamic State or Russia? Ten Key Questions Towards Pragmatism - 1st Sep 14
Mixed Emotions for the Gold Market - 1st Sep 14
These Clowns Are Dragging Us Into War with Russia - 1st Sep 14
Marx And The Capitalist Cancer Of Overproduction - 1st Sep 14
Scottish Banks Salivating at the Prospects for an Independent Scotland of 6 Million Debt Slaves - 1st Sep 14
Small Man Europe Is Now In “Effective State Of War” With Russia - 31st Aug 14
The Unintended Blowback Of False Flags - 31st Aug 14
Tesco Supermarket Death Spiral Latest Profits Warning and Dividend Slashed - 31st Aug 14
Dow, Gold and Silver - A Last Stand, A Fake Out And A Surge - 31st Aug 14
If U.S. Consumers are so Confident Why aren't They Spending? - 31st Aug 14
Scotland Independence House Prices Crash, Deflationary Debt Death Spiral - 31st Aug 14
Obama’s “Catastrophic Defeat” in Ukraine - 30th Aug 14
Stock Market Inflection Point Approaching - 30th Aug 14
Gold And Silver - Elite's NWO Losing Traction. Expect More War - 30th Aug 14
Corporations Join Droves of Americans Renouncing US Citizenship - 30th Aug 14
Peter Schiff U.S. Housing Market, House Prices Bubble Warning - 30th Aug 14
Russia, Ukraine War - It’s Time to Play the “Gazprom Card” - 29th Aug 14
The One Tech Stock Investment You Should Never Sell - 29th Aug 14
Bitcoin Price $500 as Current Downside Barrier - 29th Aug 14
Don't Get Ruined by These 10 Popular Stock Market Investment Myths - 29th Aug 14
Low Cost Transcontinental Gold - 29th Aug 14
Gold Bullish Central Banks Should Give Money Directly To The People - Helicopter Janet? - 29th Aug 14
US House Prices Bull Market Over? Trend Forecast Video - 29th Aug 14
The Fed Meeting at Jackson Hole Exposed Yellen’s Greatest Weakness - 29th Aug 14
AAPL Apple Stock About To Get sMACked - 29th Aug 14
A History of Unlimited Money: Learn From It or Repeat Its Mistakes - 29th Aug 14
How You Can Play to Win When Market Makers Are Calling the Shots - 28th Aug 14
EU Gas Supply Is In Real And Imminent Danger - 28th Aug 14
Central Banks at the Root of Evil - 28th Aug 14
European Bond Market: Bubble of all Bubbles! - 28th Aug 14
Employers Aren’t Just Whining: The “Skills Gap” Is Real - 28th Aug 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Biggest lie in Stock Market History Revealed

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