I can't think of astock that's more hated.
We've written about this company several times before. And
just about every time we mention it, we end up receiving nasty
emails admonishing the fact that we would cover -- let alone
recommend -- investors ownshares of this company.
In fact, it happens so often that whenever we cover this
stock, I instruct our staff toput in a mention that
thisinvestment isn't for everyone. If you don't want to invest in
this stock, I can certainly understand. But if you have anopen
mind toward thisblack sheep, you're likely to appreciate what it
can do for you.
Simply take a look at its performance in the past five
In anotheryear marked by stagnating growth, a slowdown
inemerging markets and uncertainty almost everywhere, the most
hated company on the planet --
Philip Morris International (
-- is still making investors rich.
Unfortunately, I've noticed that more and more investors seem
to be tricked into thinkinginvesting has to be complicated.
Butstocks like Philip Morris prove that makingmoney doesn't have
to be hard.
Philip Morris doesn't have a complicatedbusiness model . It is
simply one of the most dominant and shareholder-friendly
companies on the planet. The company does business in more than
180 countries and owns seven of the world's top 15 global brands
in itsmarket .
But it has also made a mission of rewarding its shareholders.
In the last five years, it has returned more than $22 billion in
dividends while increasing the payments per share by 84.8%.
Today, the shares already pay a healthyyield of 4.3%. But if
you bought shares today and Phillip Morris kept raising
itsdividend by 16% a year (as it has averaged over the past five
years), your dividendincome would nearly double and you'd collect
yield of 7.9%
just five years from now.
Then there are the buybacks. Since May 2008, the company has
repurchased more than $27 billion in stock -- or nearly 23% of
theoutstanding shares . And the company recently announced
another three-year, $18 billion stock repurchase plan that began
a year ago.
All of these moves simply make the stock more valuable, even
ifearnings don't rise a cent. And as you can see in the chart
above, that's showing up in the share price as well.
Of course, with investing there's never a surefire thing.
There's no quality a company can possess thatwill guarantee its
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But there's a reason I named Philip Morris one of my
Top 10 Stocks for 2014
. When you can find companies that dominate their market and are
returning billions to investors, these stocks that can still
deliver strong returns in nearly any market -- including this