Growth stocks make most of the headlines, but they don’t always make investors the most money. Investing in a hot industry can be exciting, but who can say which firms will survive? Will these businesses even be profitable? The real money, as the top dividend stocks above show, comes from compounding small returns over long periods of time. You typically find those kinds of profits in businesses that don’t grow, don’t innovate, and don’t make headlines. But if you’re willing to trade being the talk of your next cocktail party for steady returns, cash cows might be some of the best investments around.
Yet despite their stodgy reputation, cash cows owners have become rich over the decades. In a 2015 paper, Credit Suisse Group AG (NYSE:CS) published the returns of each industry between 1900 and 2010. The best businesses tended to be slow, mature industries like food, chemicals, and electrical equipment. (Source: “Credit Suisse Global Investment Returns Yearbook 2015,” Credit Suisse Group AG, last accessed March 8, 2017.) Take my favorite cash cow, Iron Mount REIT (NYSE:IRM), for example. The firm has the excitement of milk toast. The company stores paper documents for businesses, charging a fee in exchange for warehouse space. J M Smucker Co (NYSE:SJM) looks like a textbook cash cow. The company makes jam, pet food, and other pantry items. In other words, timeless products that don’t need to be reinvented every few years. Smuckers will probably look the same decades from now. Enbridge Energy Partners, L.P. (NYSE:EEP) might be the best cash cow of all.
Source: Income Investors
Related Articles:
- 4 High Yield, High Risk Dividend Stocks
- 5 Dividend Stocks To Buy And Hold, Not Buy And Forget
- All Investments Carry Risk
- Warren Buffett's Two Investing Rules For Dividend Investors
- Dividend Stocks vs. Dividend ETFs
These Top Dividend Stocks Yield Up to 13%
Posted by D4L | Thursday, March 30, 2017 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
In this series, we look through the most recent Dividend Channel ''DividendRank'' report, and then we cherry pick only those...
-
Owning dividend stocks can be a great way to both generate cash flow and beat the market long term. And if you can find stocks that are over...
-
I wanted to find an ideal list of stocks with high dividend yields. The stocks would have to be cheap as well. And the dividends would have ...
-
Long-time readers know I’m a big fan of the insurance industry because of one quirk in their business model. Customers always pay premiums u...
-
It has been a glum time for ExxonMobil (NYSE:XOM) shareholders. Regardless of whether you’re looking at the past one year, five years, or te...
-
Investors tend to gravitate to dividend stocks, particularly when those equities increase their payout on an annual basis. When these types ...
-
“Cheap” stocks aren’t necessarily the best cheap stocks to buy. And dividend stocks, even those with a high payout, aren’t necessarily safe....
-
This company's management has raised the quarterly distribution 71 straight quarters, 22 straight years - it will be a Dividend Aristocr...
-
The markets have been doing very well over the past several weeks, and finding some good bargains has been a bit challenging of late. Howeve...
-
Dividend-paying companies are beacons of profitability. Generally speaking, a company isn't going to share a percentage of its profit or...

0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.