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November, 2001

GROWTH PLUS INCOME - GETTING RICH SLOWLY
by LARRY

Although this has not been so true in recent years, historically much of the attraction and profits from stock investments has come from their dividends. A growth plus income strategy of getting rich slowly may be more practical, in the long run, than emphasizing only one at the expense of the other. Appreciation of principal, or growth, helps assure that one's assets stay ahead of inflation and may eventually provide for a comfortable retirement. But dividends, or income, as a share of company profits provided directly to investors, rather than plowed back into business ventures, can help smooth out the dramatic ups and downs of the stock prices and, sometimes, provide extra value during bear markets.

After the recent losses in equities, since March, 2000, several real bargains are now out there, many sporting hefty dividends. Here are five that seem overall to offer lower risk and greater growth potential than the stock market as a whole, while their dividends compare favorably with recent bond and money market yields.



AssetAllegheny
Energy
Ameren
Corp.
Hubbel
Inc. 'B'
KLM Royal
Dutch
Airlines
Simon
Property
Group
SymbolAYEAEEHUBBKLMSPG
Recent Price$38.10$41.34$27.90$8.92$27.90
Price to
Earnings (P/E)
9.012.317.1Not
meaningful
32.4
Yield4.6%6.1%4.7%7.8%7.5%
Price to
Book Value
172%172%211%24%201%
SafetyHighestHighestHighestAverageAbove
Average


DISCLAIMER

Larry is not a professional. Don't take him seriously!

Actually, the investment article provided here is for general information only and should not be considered as professional advice, a solicitation to buy or sell any security, or the Word of God. Investors are encouraged to do their own research while considering their personal goals and circumstances, or consult their own professional financial advisors, before making investment decisions. Neither Larry nor LARVALBUG will be liable for any losses sustained by any visitor to this site.

(Disclosure statement: Larry and Val have holdings in some of the suggested assets but do not "make a market" in any of them and do not derive any direct benefit from recommending them, except perhaps for a bit of smug self-satisfaction.)



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