[Editor's note: In honor of the New Year, we at
StreetAuthority thought it might be worth looking back at some of
our most popular articles of 2012. This article was originally
published on June 22.]
I can't think of a stock that's more hated.
I've written about this company several times before. I've
personally owned it for years. But just about every time I mention
it, I end up receiving nasty emails admonishing the fact that I
would cover... let alone recommend... investors ownshares of this
In fact, it happens so often that I instruct our staff toput in
a mention that thisinvestment isn't for everyone whenever they
cover it. If you don't want to invest in this stock, I can
certainly understand. But if you have an open mind toward thisblack
sheep, then you're likely to appreciate what it can do for you.
Simply take a look at its performance during the past
In a year marked by credit downgrades, the European debt crisis
and stagnating growth, the most hated company on the planet --
Philip Morris International (
-- is still making investors rich. And that comes when the
broadermarket has been a roller coaster ride.
In fact, Philip Morris touched a new52-week high in October.
Unfortunately, I've noticed that more and more investors seem to
be tricked into thinkinginvesting has to be complicated. But stocks
like Philip Morris prove that makingmoney doesn't have to be
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 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 past three years alone, it has returned more than $12 billion
in dividends while increasing the payments per share by 46%. Today,
theshares pay ayield 4%.
Then there are the buybacks. Since May 2008 the company has
repurchased more than $20 billion in stock -- or nearly 20% of
theoutstanding shares .
All of these moves simply make the stock more valuable, even
ifearnings don't rise a cent. And as you can see, that's showing up
in the share price as well.
I must admit, I'm a bit biased though. I personally own Philip
Morris and also selected it as one of my "
10 Best Stocks to Hold Forever.
Of course, with investing there's never a surefire thing.
There's no quality a company can possess thatwill guarantee its
But when you can find companies like Philip Morris that dominate
theirmarket and are returning billions to investors, these are the
sort of stocks that can still deliver strong returns in nearly any
market -- including this one.
Action to Take -- >
investments that are similar to Philip Morris in that they
dominate their markets, pay increasing dividends and repurchase
billions in stock. To learn more about these ideas, including
several names andticker symbols , please
visit this link
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