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
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
Add it all up, and things are starting to get tense. That leaves investors wondering where they can go for safety. After years of tech outpe...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
Dividend-paying stocks are like the ballast that keeps a ship from capsizing during stormy seas. They provide grounding for investors who, w...
-
Are you on the hunt for a generous and reliable dividend stock? If so, the list of Dividend Aristocrats -- comprised of those few companies ...
-
Individual investors were jolted by the sudden reappearance of market volatility in October. Given a range of issues spanning natural gas av...
-
If you’ve paid any attention to the financial news lately, you’d know that market sentiment has changed. This shouldn’t come as a surprise; ...
-
Overall, the widely followed Berkshire Hathaway investment portfolio shows Warren Buffett knows the value of a consistent and growing divide...
-
Without a doubt, buying and holding stocks is the best way to generate wealth over long periods of time. And we're not talking about hol...
0 comments
Post a Comment
Post a Comment