If you're a nerd like I am, then you've read your Jeremy
Siegel research and can name the top-performing S&P 500
stock from 1957 to 2003. But if you don't know the name of
that stock, see if you can guess it from the five hints
below.
Can you guess?
It turns out that this super-stock delivered a
near-20% annual return from 1957 to 2003, performance that
would have turned a measly $1,000 into
more than $4 million.
And the secret to getting this return, Siegel discovered,
was a combination of hint No. 2 and hint No. 5. By taking the
company's hefty dividend and reinvesting it in its
perpetually undervalued shares, investors ended up really
juicing their returns.
So what was the stock? You probably guessed that it was
cigarette-maker
Altria (NYSE: MO) -- a stock that's
stillpaying a greater-than-7% yield.
Yet even if you don't wish to own Altria -- given what it
sells, some don't -- the lessons its stock teaches are
relevant for everyone who seeks to make good money in the
market.
Look for:
A lineup of promising suspects
Our research team at
Motley Fool Income Investor
specializes in finding these types of stocks for their
investors. While I can't give away their current picks, here
are six stocks they told me I could tell you they're
watching:
Stock
Current Yield
5-Year Dividend Growth Rate
Wal-Mart (NYSE: WMT)
2.2%
25.5%
McDonald's (NYSE: MCD)
3.7%
29.5%
Lockheed Martin (NYSE: LMT)
3.7%
21%
Leggett & Platt (NYSE: LEG)
5.4%
12.1% Continued... |