I coined the phrase “forever assets” years ago to describe an elite group of businesses that have rewarded investors for decades. These firms sell timeless products and enjoy entrenched market positions, and thanks to this type of competitive advantage, these stocks have crushed the broader stock market. While tech firms have to invent the next hot app every other quarter, forever assets don’t have to run on the innovation treadmill. Likewise, forever assets don’t deal in financial mumbo-jumbo or hard-to-understand investment derivatives. In some cases, many of these firms have made the same product for over 100 years. That has resulted in a reliable, growing stream of income that has lasted for decades.
One great example: The Coca-Cola Company (NYSE:KO). Most people associate the the company with its trademark beverage (hint: it’s in the name), but over the years, the company has acquired a diversified portfolio of leading brands, like “Sprite,” “Fanta,” and “Dasani.” Exciting? Not really, but selling the basics has made Coca-Cola into a cash-flow machine. The company has paid a dividend for over 125 years. Its shares have also beaten the S&P 500, delivering a total return (including dividends) of 12,500% since 1968.
Source: Income Investors
Related Articles:
- Why Dividends Matter
- Hey, You Invest Like a Girl!
- Are Storm Clouds Gathering For These 4 High-Yielding Securities?
- Weekly Links: May 13, 2017
- 5 Dividend Stocks With A Low P/B Ratio
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
If you want to earn more dividend income from the stock market, then you need to start investing in healthcare. Analysts project the number ...
-
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 ...
-
I am going to double down on Exxon Mobil (XOM) this week because I believe investors will have to deal with more market volatility going for...
-
High dividend yields are harder to find lately, given the long-running stock market rally. But that scarcity doesn't mean investors have...
-
Dividend investing is all about owning investments that pay you — and pay you well — through thick and thin markets. And whether you are bui...
-
The U.S. boosted tariffs on $200 billion worth of Chinese goods from 10% to 25%. The markets had expected this to be the week that this deal...
-
One little-known tax loophole allows Americans to collect large, growing distribution checks from the government. And investors can begin ea...
-
Every investor needs a security blanket -- that piece of the portfolio that needs no attention and doesn't keep you up at night. Busines...
-
Technology is the alchemy of the stock market. It is where companies turn worthless silicon into incredible new and expensive gizmos and dev...
0 comments
Post a Comment
Post a Comment