This Dividend Superstar Is a Must-Own Right Now
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| By Nilus Mattive |
A couple days ago, I told you to buy conservative dividend-paying stocks instead of waiting for a check from any politician.
That begs the question: Which particular companies do I like right now?
I normally save specific recommendations for people who pay for my various investment services.
But I don’t mind giving you one example right now, especially since it’s already up more than 82% since I put it into the Safe Money model portfolio back in June 2024.
Just to put a finer point on that …
This stock could have handed my subscribers about 40% a year since I told them to buy it.
That is absolutely incredible performance.
Yet even right now, the stock is still paying annual dividends worth about 6.4% a year.
That alone is MUCH higher than you’d get from any type of U.S. Treasury bond right now, even after the latest interest rate hike.
Meanwhile, if you use the special income-boosting strategy I discuss in this video, you can potentially get a lot more cash out of the stock just about any time you feel like it.
In fact, you can even start collecting big payments without even having to actually buy the stock at all!
I am not speculating on that.
We actually just applied our strategy to this stock and tracked an extra $721 in “free money” collected between July and last week … without requiring the purchase of a single share.
Perhaps the most surprising thing is that this company doesn’t have anything to do with AI, crypto, space exploration or any of the other big trends all over the headlines.
If anything, most people think it’s an old dinosaur with a dying business.
Which is funny because they’ve been saying the same thing for two decades now.
While my readers have been laughing all the way to the bank just as long.
I’m talking about tobacco company Altria (MO).
It was the very first recommendation I ever made in the very first newsletter issue I ever published with Dr. Martin Weiss.
And there was good reason for that: This was back in June 2007, when we were at the top of a real estate bubble … something that Martin and I were both warning about quite loudly.
Any time you’re in that kind of environment, investors are largely focused on greed rather than fear despite huge warning signs.
Which is the right time to do the opposite and focus on steady, conservative companies that hold up well during bad markets and tough economic times.
I made that case in the first issue of Dividend Superstars back in 2007, pointing out the fact that certain sectors of the stock market — especially consumer staples, healthcare and utilities companies — had held up very well during bad times even as most other categories of investments lost tremendous value.
This continues to hold true based on more recent research.
For example, a comprehensive study performed by State Street Advisors pointed to the same three sectors as safe havens during seven recessions occurring between 1960 and 2019.
On average, utilities lost just 2% … healthcare stocks lost 3% … and energy stocks fell 4%. Consumer staples actually GAINED 1%.
Meanwhile, how did other sectors do according to that study?
After the four groups I just mentioned, consumer discretionary companies were the next best performers. They lost 12% on average.
Tech companies were near the bottom of the list, dropping 20%. Only real estate did worse, losing 22%.
But there are two additional points I’d like to make.
First, this study did not seem to take into account dividend payments.
Those would have only shifted the results further in favor of the top four sectors while also bringing real estate much higher on the list.
Second, from my own research, drilling into the consumer staples sector more deeply would show one particular industry performing the best of all — tobacco products.
This is precisely why Altria was the very first stock recommendation I made for Dividend Superstars back in June 2007 …
Why I recommended buying more of it after the 2008 stock market crash …
And why I recommended it once again to Safe Money Report readers back in June 2024.
Because I’ve been saying we’re in yet another bubble environment, where investors are focused on hot names and interesting stories far more than cold, hard cash.
If you agree, I suggest you revisit companies like Altria right now.
Again, you don’t even have to buy any stock upfront.
Best wishes,
Nilus Mattive
P.S. Unlike a lot of other approaches you might hear about, this one is backed up by many years of real-world performance from actual published recommendations.
In fact, we’ve had a 93.8% success rate over the past six-plus years, and we’re on track for our best year ever.
Just click here to get the full story while you still can.
1https://www.advisorperspectives.com/commentaries/2019/01/30/sector-business-cycle-analysis
