So Far So Good

Wendys(WEN) is making a nice comeback. Everything is on track for $6.50 a share within 2 years. It may move faster if a take out offer is made. Also you will collect around a 1.5% dividend in while you wait. Happy investing. Tony

I Told You So.

I hate to say those words but Wendy's(WEN)is starting to move finally. Up today over 6% on 5 times the normal volume. Still not too late to get in on this one. I think $6.5 a share within 2 years is easily possible. Happy Investing. Tony

The Power of Dividends

I am not the only one that invests with this style. Read this post from Marketwatch.com. Tony

ROCKVILLE, Md. (MarketWatch) -- Wouldn't it be great if you could pick stocks for free and still reap the rewards if they do well?



Unless you have a rich benefactor doling out play money or you count your paper trades as "profits," that's just a pipe dream for most of us.



But dividend-stock investors can get the next best thing via high-yield plays with reliable paydays. These companies can literally pay for themselves in a decade or so -- and then the value of the shares is 100% profit when you cash out.







Not every dividend stock pays for itself in a reasonable time, of course. Companies that slash payouts or keep yields at 1% or so could take a lifetime to shell out the dividends to offset your initial investment. But a select group of stocks have "paid" for themselves in less than 15 years of disbursements. That's certainly long term, but considering that many of these picks also have seen share prices jump dramatically, that 100% return on investment is nothing to sniff at. Read about the best dividend stocks to grow your nest egg.



Here are seven high-yield dividend stocks that have paid for themselves in less than 15 years, using real dividends and real share prices from the third quarter of 1995 to the present day:



Altria Group Inc.



Adjusted share price Oct. 2, 1995: $6.42. Dividends paid since Oct. 2, 1995: $32.19.



The math is a bit strange accounting for the 2008 spinoff of Philip Morris and a 3-for-1 split in 1997. But investors who jumped into what is now Altria in 1995 had a cost basis of around $6.42. The total dividends paid by Altria across the last 15 years add up to $32.19. That means the stock is paid for and then some even at current valuations -- though on this cost basis, shares would be paid for five times over. And that's not counting the 0.7 of a shares of Kraft Foods Inc. for every one share of Altria held in 2007 when it spun off its majority stake. Current investors should be pleased that Altria still has a big dividend payday, with a current yield of 6.3%.



Consolidated Edison Inc.



Share price Oct. 2, 1995: $30.50. Dividends paid since Oct. 2, 1995: $33.47.



The math on utility stock Consolidated Edison is a bit easier, with no splits to worry about. Shares are up 60% from valuations 15 years ago, and the regular dividend payments add up to a total of $33.47. It's worth noting that ED has paid a dividend on its shares for 125 consecutive years, so it's highly unlikely this stock will stop paying for itself anytime in the near future. Current yield for ConEdison is 4.8%. Read about utilities to avoid.



Dominion Resources Inc.



Adjusted share price Oct. 2, 1995: $18.94. Dividends paid since Oct. 2, 1995: $36.10.



Another stalwart utility stock, Dominion Resources , has seen shares more than double over the last 15 years when adjusted for a 2-for-1 stock split in 2007. But that's not the only way this pick has paid for itself -- this utility stock has delivered $36.10 a share in dividend payments since 1995. That almost pays for the current price of the stock, and is almost double the initial buy-in per share 15 years ago. Dominion stock currently yields a dividend of 4.1%, so it remains a pretty strong dividend play.



General Electric Co.



Adjusted share price Oct. 2, 1995: $10.58. Dividends paid since Oct. 2, 1995: $15.94.



Much-maligned conglomerate General Electric was trading for under $11 a share 15 years ago (accounting for a 2-for-1 split in 1997 and a 3-for-1 split in 2000). The GE haters will point out that a return of around 55% in 15 years is hardly better than a CD -- and let's not forget that 75% drop from its dot-com highs. Still, dividend investors have been rewarded by this company over the long term, despite recent slashes in payouts and a yield that remains a fraction of levels enjoyed a few years ago. GE has paid for itself 1.5 times over since 1995, and has even paid for itself at current valuations. GE stock currently yields about 2.9%. Read about five stocks set to rally in a short squeeze.



Public Storage Inc.



Share price Oct. 2, 1995: $18.50. Dividends paid since Oct. 2, 1995: $24.93.



Technically a real-estate investment trust, Public Storage is a dividend stalwart that has paid for itself easily in the past 15 years. What's more, share prices are up about 450% in the last decade and a half, making this a heck of a retirement investment for those who jumped in back in 1995. Current dividend yield for Public Storage is 3.1%. The company could be a strong investment as many people are afraid to buy a home in this volatile housing market, and are relying on storage units to house their furnishings as they rent.



Rayonier Inc.



Adjusted share price Oct. 2, 1995: $14.23. Dividends paid since Oct. 2, 1995: $20.34.



Also technically an REIT just like Public Storage, timber powerhouse Rayonier has been paying dividends since 1994 and has paid for itself for any investor that bought in across those early years. After two 3-for-2 stock splits (one in 2003 and one in 2005), Rayonier stock was trading for an adjusted price of around $14 in 1995, and has paid more than $20 in dividends. Equally pleasing are the stock's 15-year returns, with gains of about 180%. The current dividend for Rayonier is 4%.



United Technologies Corp.



Adjusted share price Oct. 2, 1995: $10.84. Dividends paid since Oct. 2, 1995: $11.28.



Aerospace and industrial giant United Technologies has seen three 2-for-1 splits -- in 1996, 1999 and 2005. Adjusted for those events, investors would have bought into UTX at under $11 a share in 1995 and enjoyed a stunning return of nearly 550% in the next 15 years. To top it off, United Technologies shares would have paid for themselves with more than $11 in dividends. Current dividend yield for UTX is 2.4%.



Jeff Reeves is the editor of InvestorPlace.com. Follow him on Twitter at twitter.com/JeffReevesIP

Dividend Increase

Not to pat myself on the back but McDonalds(MCD) was a great stock idea made on this BLOG a while back. Today they announced an 11% increase in their Dividend starting next quarter. Also the stock is trading at close to it’s all time high currently at $75 a share. When I first wrote about it was in the $50 a share range. It’s one of those buy once and hold forever stocks that I love for the long haul. Plus they raise their dividend almost every year so you more than keep up with inflation even if the stock stays flat! Wendys(WEN) is taking awhile to turn around but I still believe this is a good place to park money that you should be able to cash out in 2-3 years once they turn it around or they get bought out at a premium. Happy investing. Tony

Stock Pick Updates

Finally some vindication! Wendys stock is on the move, as well as the whole market. McDonald's is at a new all time high, this one I have been recommending to all my friends and family for some time now. It's not too late to get into this bull move in the market. I still recommend buying quality dividend paying stocks for the long haul. Happy Investing. Tony

Kraft Foods(KFT)

Here is an article supporting my pick of Kraft Foods(KFT) for long term purchase. Goof luck investing. Tony


INTERVIEW: Kraft Foods To Raise Profile Of Cadbury Products In China


Aug 13, 2010 00:27:34 (ET)


By Jeffrey Ng


Of DOW JONES NEWSWIRES



HONG KONG (Dow Jones)--Kraft Foods Inc. (KFT) is seeking to raise the profile of Cadbury products in China as the U.S. food giant ramps up investments in developing markets, particularly the Asia-Pacific region, which has become Kraft's key growth driver following its multi-billion dollar acquisition of the British confectioner earlier this year.



The Northfield, Illinois-based company, with brands such as Kraft, Maxwell House, Tang and Oreo, has been expanding its presence in developing markets over the last three years amid slowing growth at home. It spent US$7.2 billion to buy Groupe Danone SA's global biscuit business in 2007 to give it a stronger toehold in countries such as China and Indonesia.



Kraft Chief Executive Irene Rosenfeld said the company's US$19 billion purchase of Cadbury PLC was "just the next step in that evolution." Kraft targeted the confectionary producer in large part because of its presence in fast-growing developing markets in Latin America, Asia-Pacific and the Middle East.



Rosenfeld told Dow Jones Newswires in an interview that Kraft is placing "disproportionate focus" on Asia-Pacific, mainly because of the strength of the Indian and Chinese consumer markets, in which the company expects to see "explosive growth" in the future.



The world's second-largest food company after Nestle SA doesn't break down its figures for Asia-Pacific, but it has said its operating profit for the region has registered double-digit growth since 2008, and it expects a similar trend to continue.



Though Cadbury has had a strong position in India, its presence in mainland China--Kraft's fastest growing market--has been very small. Rosenfeld said she hopes to build on the success of Kraft's Oreo cookies in China with Cadbury's line of products, which include Dairy Milk, Trident, Dentyne chewing gum and Halls cough drops.



Kraft's China revenue has quadrupled over the last four years, helped by the acquisition of the Danone biscuit business, which provided a strong distribution platform for Kraft to market flagship products such as Oreo.



Efforts to cater to local tastes by reducing the sweetness of Oreo cookies sold in China have helped make the brand the best-selling packaged cookie in the country, according to Kraft.



"I think you will see a similar step-up in a number of the core Cadbury businesses," said Rosenfeld. "Cadbury was essentially sub-scale in that market and today, as part of the Kraft family, the infrastructure is considerably greater and our opportunity then to penetrate the country...is that much greater."



Rosenfeld added she expects the Cadbury franchise in China to be a "very important and significant growth engine for us in the next couple of years," but declined to give projections.



Kraft has already taken Cadbury's Halls cough drops to outlets in China that carry Kraft products, and the company expects similar opportunities to raise awareness of other Cadbury brands.



The company is also realizing operational savings in China with the combination of the two businesses. For example, the company is making surplus sugar from its Tang factory available for use at Cadbury's Halls factory, which is just 500 meters away, said Rosenfeld.



In addition, she said the company is in the process of consolidating the China headquarters of Cadbury and Kraft in Kraft's Shanghai offices. Cadbury had been operating out of Beijing.



The inclusion of Cadbury's operations helped boost Kraft's second-quarter net revenue from developing markets by 73.4% from a year earlier to US$3.30 billion, surpassing contributions from Europe, and accounting for 27% of its total US$12.25 billion of revenue for the quarter.



Rosenfeld said Kraft will invest more heavily in developing markets, especially in Asia-Pacific, to drive growth from a strong base. Aggregate spending in the region will be "considerably north of" the 8% of revenue Kraft has planned for the company as a whole, she said, though specific investment figures haven't been finalized.



But she said new acquisitions won't be part of Kraft's investment plans. "I feel very good about our portfolio, and it will be many years before we work through some of the opportunities, so I would say it would be premature to comment on those kinds of opportunities."



Since becoming CEO in 2006, Rosenfeld has led an effort to make Kraft a bigger, more profitable company through acquisitions and investments in major brands.



Under her watch, the company's developing-market strategy has involved placing particular focus on 10 products in 10 key markets, helping boost profits from the segment by 24% over the last three years.



With the Cadbury deal, Kraft has added Trident, Halls, and Dairy Milk to its list of 10 focus products and put India on the map as a target market.



Rosenfeld said she looks forward to building Kraft's businesses in China and India to the point where they each generate US$1 billion in revenues a year, putting them on a level with the company's operations in Russia and Brazil, though she declined to provide a timeframe. "I'm quite optimistic about the future of our business in this region."



-By Jeffrey Ng, Dow Jones Newswires; 852-2802-7002; jeffrey.ng@dowjones.com



(END) Dow Jones Newswires



August 13, 2010 00:15 ET (04:15 GMT)

Wendys (WEN)

Wendy's stock is slowly making a comeback. I have noticed the traffic picking up in their local 3 stores here in North Jersey. I love their new premium chicken offerings and the Bacon n Blue is awesome! I look for the stock to slowly rise towards the $6 a share range by next spring. So look for a 40% gain from here and collect the dividend in the mean time. Happy investing. Tony