I coined the term “forever asset” to describe a group of top dividend stocks that have rewarded shareholders for decades. These wonderful businesses enjoy entrenched market positions, allowing them to crank out wide profit margins year after year. Over the past few months, I’ve covered a number of these companies. I’ve shown you how boring firms like soda, railroads, and cell phone towers can make great investments. And if you’re looking for a retirement income stream, these boring businesses make for some of the best stocks around. Today’s article highlights one of my favorite “forever assets” ...
Kellogg Company (NYSE:K) is the leading producer of ready-to-eat cereal, but also sells crackers, potato chips, and other assorted snacks. And while you won’t impress any MBAs sticking this name in your portfolio, I love the business. To start off, it’s depression-proof. No matter what the economy is doing, people need to eat. Shoppers buy food regardless of inflation, interest rates, or widening credit spreads. Next, it’s an incredibly lucrative business. Kellogg earns 40% gross margins. Over the past five years, the company has collected $0.37 in profit on every dollar of equity invested in the business. Finally, this is one of the most reliable dividend payers around. Kellogg has been mailing out checks to shareholders since 1925—back when Calvin Coolidge was President.
Source: Income Investor
Related Articles:
- 6 Blue Chip Dividend Stocks For When the Chips Are Down
- The 2016 Elite Dividend Stocks List
- My Top 3 Investing Mistakes
- 6 Stocks Currently Trading Below their Fair Value
- The Wit and Wisdom of Warren Buffett
- The Perfect Dividend Stock
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Many companies have been suspending their dividends during the COVID-19 crisis, and in many cases it is understandable. In times of economic...
-
While near-term fluctuations in the stock market can be unpredictable, dividends are one of the few reliable sources of market returns. Stoc...
-
“Research shows that dividend cuts are associated with significant share price declines on announcement,” Cornell University Professor of Fi...
-
AbbVie (NASDAQ:ABBV) is in the midst of a transition. AbbVie began life about a decade ago when it was spun off from health care and medical...
-
With interest rates at historic lows and bond-yields heading down quickly, the payouts from dividend stocks are becoming more and more appea...
-
3M Company (NYSE:MMM) is growing its FCF very well, and as a result, MMM stock is likely to move up at least 44% over the next or so. Right ...
-
Warren Buffett has said the best time to sell is never, and though he often doesn't follow his own rules -- as the recent sale of all th...
-
Dividend investing is a great way for investors to earn reliable income. Dividend stocks tend to have stable, cash-generating business model...
-
We’ve pulled up the details on some of Oppenheimer's recommendations. These are stocks with a specific set of clear attributes, that fre...
-
Looking for survivors in the high-yield midstream space? This general partner just dropped down $48M in trucking assets. Management is guidi...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.