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Dividend Stocks To Hold Forever

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Looking for the best dividend stocks to own forever? An eccentric billionaire reveals his lost secret. – PowerPoint PPT presentation

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Title: Dividend Stocks To Hold Forever


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Welcome to Dividend Stocks Research Your premier
site for Rankings and Reviews of the best
dividends stocks around. For more info on
dividend stocks please visit our website
DividendStocksResearch.com
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  • Hi, My name is Aaron and Im with Dividend Stocks
    Research, today were reviewing our recently
    published article

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  • Dividend Stocks To Hold Forever

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  • The billionaire John Paul Getty and I once stayed
    at the same hotel. It was one of those hotel
    rooms you never want to leave... The Park
    Sonnenhoff in Vaduz, Liechtenstein, a small
    country wedged between Switzerland and Austria.

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  • The only problem is that we werent there at the
    same time.
  • Otherwise, I would have been grilling Getty about
    his dividend stocks. After all, in 1957, Fortune
    magazine named him the wealthiest man in America.
    Not a bad guy to learn from.

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  • Getty may have had more alimony payments than
    dividend stocks... he was divorced five times.
  •  
  • But while his wives came and went, his dividend
    stocks stuck around.

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  • One of these stocks he bought in 1932 when it was
    bloodied by the Great Depression.
  •  
  • You can follow in Gettys footsteps and buy the
    same stock today.

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  •  Different name, different price, but the same
    bargain that made Getty so rich.

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  • The Dividend Stock That Paid 5 Alimonies

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  • In 1929 a share of Tidewater Associated Oil sold
    for 380.
  •  
  • In 1932, you could buy a share for 40. Thats
    when Getty went in and added to his Tidewater
    Holdings.

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  • Sure enough, the economy came around, oil prices
    went back up, and so did the price of Tidewater.
    The company went through a few name changes and
    was acquired by Texaco in 1984.
  •  Then in 2001, Texaco merged its refining
    operations into Chevron CVX.

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  • Which brings us to today...

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  • This Is The Kind Of Dividend Stock You Hold
    Forever

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  • Chevron is a good example of a dividend stock
    youll never want to sell.
  •  
  • Especially if you believe that oil prices have
    been roughed up about as much as theyre going to
    be.

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  •  Chevron is an SP 500 Dividend Aristocrat. It
    has been paying a growing dividend for 27 years.

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  • What is a dividend without this kind of
    consistent payout and growth?
  •  Not much. One-night stands, flash in the pan
    dividend stocks dont create wealth. They might
    be fun, they might give you a rush, but dividends
    that are paid one quarter and vanish the next
    arent what smart investors look for.

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  • They look for solid companies.
  •  And while Chevron no longer looks like The
    Tidewater Associated Oil Company John Paul Getty
    invested in 80 odd years ago, what made Tidewater
    a target for Getty makes Chevron attractive today.

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  • If theres a warning signal, and this is
    definitely something to consider, the dividend
    payout ratio is not good right now... its
    109.5.
  •  Most of the time, a number like this would send
    me running for cover.

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  • They tend to be time bombs. This means theres a
    simple question you need to ask...
  •  Does Chevron have enough money tucked away to
    keep paying the dividend while profits are
    roughed up by lower oil prices?

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  • Take a look at the balance sheet and youll see
    that Chevron has plenty of cash... more than 12
    billion.
  • Its stopped its stock buyback and its spending
    less on exploration.

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  • Its also selling off some assets to pump up the
    cash.
  •  So Chevron has trimmed its sails.
  • And its not in the high rent district of stock
    prices. The Price Earnings Ratio is 10.1x

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  • Thats a 45 discount from the overall market.
  •  And when you look back on Chevrons stock price
    performance....
  •  Its been able to plow through the ups and downs
    of the past 15 years. Youll see some nice
    growth...

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  • And remember... the growth in the stock price
    came at the same time dividends kept growing.
  • So these are some of the reasons why you should
    check out a company like Chevron when youre on
    the prowl for good dividend paying stocks.

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  • But theres something else to keep in mind.
  •  Something you wont find on a chart or in the
    balance sheet.
  •  When youre sizing up companies to find the best
    dividend stocks, never underestimate the
    importance of patience...

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  • The Lost Secret Of A Dividend Stock Billionaire

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  • John Paul Getty revealed this secret 50 years
    ago.
  •  Today, Getty has fallen out of fashion.
    Nowadays investors are smitten with Warren Buffet.

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  • But back in the late 1950s, back when Cadillacs
    had fins and TV shows were broadcast in black and
    white, Getty was the man.
  •  
  • The wealthiest man in America.

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  • Heres what John Paul Getty revealed in his
    wonderful book, How To Be Rich, published in
    1965.

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  • "It is possible to make money -- and a great deal
    of money -- in the stock market. But it can't be
    done overnight or by haphazard buying and
    selling. The big profits go to the intelligent,
    careful and patient investors, not to the
    reckless and overeager speculator. The seasoned
    investor buys his stocks when they are priced
    low, holds them for the long-pull rise and takes
    in-between dips and slumps in stride."

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  • Go Find Your Own Dividend Stocks To Hold Forever

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  • Take John Paul Gettys advice. Dont get all
    riled up about dips and slumps.
  • Look at the Chevron chart again. Youll see four
    different stretches over the past 15 years when
    the stock seemed like it was going nowhere.
  • And these days, you see it going south.

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  • Dont be what Getty called, the reckless and
    overeager speculator. Show some of his
    patience.
  •  
  • Take the dips and slumps in stride.

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  • Take a page out of Gettys playbook. Hes left
    the dividend investor a lot of great advice.
  •  But you know, looking back on Gettys remarkable
    life, you cant help but wonder...

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  • Why was Getty more patient with his dividend
    stocks than he was with his five wives?

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