Chris’ note: This week, I’ve been spotlighting ways you can stay ahead of inflation in your portfolio. And I’m continuing that mission today.
Below, you’ll hear from friend of Legacy Brad Thomas on why you want to own SWAN stocks during times like these. That stands for “sleep well at night,” because these stocks have proven records of paying rising income to shareholders through good times… and bad.
And as you’ll see below, often the dividend yield alone is enough to outpace inflation. And we’re not talking about high-growth tech stocks.
One company Brad has in his sights is a 190-year-old firm that owns one of the world’s most iconic brands. And at this writing, it pays a dividend yield of 8.6%.
One in two baby boomers thinks they’ll never retire.
That’s going by a OnePoll survey from 2021… before this year’s bear market hit.
I get that fear.
And the record inflation we’re living through doesn’t help.
We’ve seen an uptick in retirees returning to the workforce.
And about one in four Americans has delayed retirement due to the rising cost of living.
But I’ve made it my mission to give you the tools you need to retire in comfort. And despite all the negative headlines… and the horrible stock market action… and record inflation… you can still reach that goal.
It’s something my team and I at Wide Moat Research strive to show you every day.
That’s the publishing business I set up from my kitchen table after I lost a successful real estate empire in the 2008 crash. (A story for another day…)
We use our collective decades of stock market experience to find you the world’s most dependable income-generators.
And the best way we’ve found of building reliable streams of income is through what I call SWAN stocks.
That stands for sleep well at night. You can rest easy knowing these stocks have long track records of paying out income to their shareholders – no matter what the market’s doing.
And you can start to build your own reliable streams of income today on one of my favorite SWAN stocks…
Dividend King
SWAN stocks have strong businesses that support sustainable dividend payments.
These are regular income payments companies make to shareholders, usually once a quarter, out of their earnings.
Altria (MO) is an excellent example.
It’s the 190-year-old tobacco company behind the Marlboro cigarette brands.
And it carries an inflation-beating yield of 8.6%.
Here’s what sets that apart from what I call “sucker yields” – yields too high for a business to support.
On top of its solid growth plans – which include phasing out of cigarette sales – Altria’s earnings easily cover its dividend payments.
It’s making more than enough money to pay its dividend… raise it… and grow its operations.
And the company has raised its dividend every year for 53 years straight.
That makes it a Dividend King – a company that boasts at least a 50-year history of raising its dividend every year.
That kind of track record doesn’t guarantee Altria will keep raising its dividends. But it has no intention of breaking that streak unless faced with a full-on catastrophe.
It’s what keeps many of its shareholders so loyal.
And Altria plans to grow that dividend by about 5% a year.
So, it offers an inflation-beating yield of 8.6% you can count on today… along with dividend growth you can count on in the future.
Dependable Wealth
SWAN stocks like Altria aren’t common.
But they’re out there…
I recommend a list of them over at my Intelligent Income Investor advisory.
And they’re great ways to build solid, dependable wealth.
If you’d bought shares in Altria in 1986, and reinvested your dividends, your income stream would have grown to $25 for every $1 you invested.
That’s an 18% annual income growth over 36 years.
That’s the power of a SWAN stock.
Now, I’m not saying go out and put all your money into Altria today. But it’s a good place to start your search.
If you’re looking to get rich quick, SWAN stocks may not be for you. But if you’re interested in learning how to create steady, reliable income, they’re a sound investment.
Just remember you want to focus on stocks with a history of paying rising dividends to shareholders.
This is one of the best indicators that a company will continue to reward its shareholders with rising income streams.
Happy SWAN (sleep well at night) investing,
Brad Thomas
Editor, Intelligent Income Daily