Driven by computers that cost more than the average person will earn in their lifetime the investment markets move at light speed. To keep pace hedge funds, mutual funds, institutional investors and multi-billion dollar money managers spend large sums of money on high-tech tools to give them an edge. Throw in some illegal insider trading from big names in the industry and it leaves you wondering what chance does a small individual investor have?
Not much of a chance if you let the Wall Street players define the rules. However, you might just slay the giant if you define the rules. In an October 2009 Wall Street Journal article, Jason Zweig noted that:
From the point of view of an investor, all this frantic trading is just noise. In 1976, the great financial analyst Benjamin Graham declared that "the stock market resembles a huge laundry in which institutions take in large blocks of each other's washing ... without rhyme or reason." Mr. Graham died that year, but today he would laugh at the speed of the spin cycle. He would then ignore the momentary vibrations in a company's stock price and go right back to analyzing the value of its business.Contrary to what many are now saying, buy-and-hold and investing in quality blue chip stocks is not dead. Consider the following stocks:
As an investor, you are free to choose your own time horizon. If other people want to try earning a few fractions of a penny a few thousand times a day, you should wish them well -- and refuse to join them.
Emerson Electric Co. (NYSE:EMR) designs and supplies product technology, and delivers engineering services and solutions to a wide range of industrial, commercial and consumer markets around the world. The company owns a broad portfolio of industrial businesses and has a reputation for providing consistent returns to investors. The company has paid a cash dividend to shareholders every year since 1947 and has increased its dividend payments for 57 consecutive years. Yield: 2.9%
Genuine Parts Company (NYSE:GPC) is a leading wholesale distributor of automotive replacement parts, industrial parts and supplies, and office products. The company has an extensive distribution network and has developed strong customer relationships over the years. The company has paid a cash dividend to shareholders every year since 1948 and has increased its dividend payments for 57 consecutive years. Yield: 2.8%
Johnson & Johnson (NYSE:JNJ) is a leader in the pharmaceutical, medical device and consumer products industries. The company enjoys competitive advantages and has products that are largely immune from economic cycles. The company has paid a cash dividend to shareholders every year since 1944 and has increased its dividend payments for 51 consecutive years. Yield: 3.1%
McDonald's Corporation (NYSE:MCD) is the largest fast-food restaurant company in the world, with about 33,700 restaurants in 119 countries. The company enjoys unrivaled scale advantages, a strong brand, a cohesive franchisee system and ample international growth opportunities. The company has paid a cash dividend to shareholders every year since 1976 and has increased its dividend payments for 36 consecutive years. Yield: 3.0%
3M Co. (NYSE:MMM) is a diversified global company that provides enhanced product functionality in electronics, health care, industrial, consumer, office, telecommunications, safety & security and other markets via coatings, sealants, adhesives, and other chemical additives. The company has invented some of the world's greatest products. It has a leading position in many of the markets it serves and a strong balance sheet with a relatively little debt. The company has paid a cash dividend to shareholders every year since 1916 and has increased its dividend payments for 54 consecutive years. Yield: 2.4%
Wal-Mart Stores Inc. (NYSE:WMT) is the largest retailer in the world, Wal-Mart operates a chain of over 10,000 discount department stores, wholesale clubs, supermarkets and supercenters. The company enjoys dominant market share positions, price leadership, strong cash flows and relatively little debt. The company has paid a cash dividend to shareholders every year since 1973 and has increased its dividend payments for 39 consecutive years. Yield: 2.4%
If your goal is to build an ever-increasing revenue stream from income investments, the above seven dividend stocks will give your income a boost over time. The key is to wait for the right entry point and let time take care of the rest.
Full Disclosure: Long EMR, GPC, JNJ, MCD, MMM, WMT. See a list of all my dividend growth holdings here.
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- 6 Healthcare Dividend Stocks For A Healthy Portfolio
- High Yield Dividend Stocks in Gurus' Portfolio
- Top dividend stocks of Warren Buffett
- Top dividend stocks of George Soros
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