The Emergency Fund Stock
Since my immediate goal has been the establishment of an emergency fund, I thought it best to analyze a few dividend paying stocks for the piece of my emergency fund that I will hold in my investment account.
My criteria are as follows.
1) Large Cap Stock (market cap of over $5 billion)
http://en.wikipedia.org/wiki/Large_cap
2) A high volume stock (Classified by me as a stock that trades at least 1 million shares/day on average. This is important because if I ever had do, I'd want to sell quickly)
3) Pays a dividend of at least 2%. (All dividends will be reinvested to grow my emergency fund)
The companies that I came up with are as follows:
1) Altria Group (Symbol: MO)
"Altria Group, Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products worldwide. It sells its tobacco products principally to wholesalers; retail organizations, including chain stores; and the armed services. The company also engages in the manufacture and sale of packaged foods and beverages. Its food products comprise snacks, beverages, cheese and dairy, grocery, and convenient meals. The company sells food products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, and other retail food outlets. In addition, Altria Group provides finance leasing services. The company was founded in 1919 and is based in New York City."
http://finance.yahoo.com/q/pr?s=MO
$180 billion market cap; Average volume of ~9.5 million; 4% dividend
People smoke, it is addicting, they will smoke in both good times and bad. Very recession resistent stock!
"Altria in January 1970 initially acquired 277 shares, a stake that would have started by paying out a mere $69 per quarter at the time.
That wasn't much then, but after 37 years of stock splits, our hypothetical investor now has 26,592 shares of Altria -- worth $2.26 million today. Perhaps more importantly, our investor is receiving $91,476 each year in dividends. (It should also be noted that these figures would be even larger if the investor reinvested dividends over the years.)"
http://aol.fool.com/investing/dividends-income/2006/12/22/stocks-that-pay-you-back.aspx
I don't know about you...but I sure could use a multi-million dollar emergency fund!
2) General Growth Properties (Symbol GGP)
"Owns, operates, manages, leases, acquires, develops, expands and finances operating properties located primarily throughout the United States and develops and sells land for residential, commercial and other uses primarily in master-planned communities."
http://caps.fool.com/Ticker.aspx?source=icaedilnk9950012&ticker=GGP
$12.69 billion market cap; Average volume of ~1.2million; 3.5% dividend
Buy land...god isn't making any more of it.
I decided to shift a little of my investment money into Altria. It seems to fit my style more and I think that it is a great investment as well as a safe place to store come cash while allowing it to accumulate interest via dividends!
Total Invested in Altria: 77.79% one one months income.
My criteria are as follows.
1) Large Cap Stock (market cap of over $5 billion)
http://en.wikipedia.org/wiki/Large_cap
2) A high volume stock (Classified by me as a stock that trades at least 1 million shares/day on average. This is important because if I ever had do, I'd want to sell quickly)
3) Pays a dividend of at least 2%. (All dividends will be reinvested to grow my emergency fund)
The companies that I came up with are as follows:
1) Altria Group (Symbol: MO)
"Altria Group, Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products worldwide. It sells its tobacco products principally to wholesalers; retail organizations, including chain stores; and the armed services. The company also engages in the manufacture and sale of packaged foods and beverages. Its food products comprise snacks, beverages, cheese and dairy, grocery, and convenient meals. The company sells food products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, and other retail food outlets. In addition, Altria Group provides finance leasing services. The company was founded in 1919 and is based in New York City."
http://finance.yahoo.com/q/pr?s=MO
$180 billion market cap; Average volume of ~9.5 million; 4% dividend
People smoke, it is addicting, they will smoke in both good times and bad. Very recession resistent stock!
"Altria in January 1970 initially acquired 277 shares, a stake that would have started by paying out a mere $69 per quarter at the time.
That wasn't much then, but after 37 years of stock splits, our hypothetical investor now has 26,592 shares of Altria -- worth $2.26 million today. Perhaps more importantly, our investor is receiving $91,476 each year in dividends. (It should also be noted that these figures would be even larger if the investor reinvested dividends over the years.)"
http://aol.fool.com/investing/dividends-income/2006/12/22/stocks-that-pay-you-back.aspx
I don't know about you...but I sure could use a multi-million dollar emergency fund!
2) General Growth Properties (Symbol GGP)
"Owns, operates, manages, leases, acquires, develops, expands and finances operating properties located primarily throughout the United States and develops and sells land for residential, commercial and other uses primarily in master-planned communities."
http://caps.fool.com/Ticker.aspx?source=icaedilnk9950012&ticker=GGP
$12.69 billion market cap; Average volume of ~1.2million; 3.5% dividend
Buy land...god isn't making any more of it.
I decided to shift a little of my investment money into Altria. It seems to fit my style more and I think that it is a great investment as well as a safe place to store come cash while allowing it to accumulate interest via dividends!
Total Invested in Altria: 77.79% one one months income.
posted by Thor @ 12:04 PM
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