💸 The Best Stock Ever
Every Wednesday it’s Dividend Day.
In this series, I will teach you 5 things about dividend investing in less than 5 minutes.
1️⃣ Best performer of the century
Do you know the best-performing stock over the past 100 years?
It’s Altria!
A big reason for this?
Dividends.
Altria was formerly known as Philip Morris. They’re a tobacco company that sells cigarettes, primarily under the Marlboro brand, as well as smokeless tobacco products.
Source: Which U.S. Stocks Generated the Highest Long-Term Returns?
2️⃣ 4 Types of dividends
What kind of dividend investor are you?
Here are the 4 different types of dividend stocks:
Source: Andrew Lokenauth
3️⃣ A dividend quote
John D. Rockefeller co-founded Standard Oil in 1870, revolutionizing the petroleum industry and becoming the wealthiest person in modern history.
He was a fan of dividends too:
"Dividends are a great way to build wealth." - John D. Rockefeller
4️⃣ Dividend stocks outperform
The difference in performance of dividend payers versus companies that don’t pay dividends is remarkable.
Check out this chart from a Wells Fargo presentation.
Click the image to see the whole PDF
In Saturday’s article, we’ll teach you how to build a wealth-creating machine from dividend-paying companies!
5️⃣ Example of a dividend stock
Altria makes money by selling tobacco products like Marlboro cigarettes and through investments in alcohol, cannabis, and nicotine products.
Here’s a look at the current numbers.
- Profit Margin: 41.4%
- Forward PE: 9.8x
- Dividend Yield: 7.4%
- Payout Ratio: 81.2%
Source: Finchat
That’s it for today
That’s it for today.
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In case you missed it:
Used sources
- Interactive Brokers: Portfolio data and executing all transactions
- Finchat: Financial data