Is possible to receive massive stock market profits with dividend and value stocks? Or, does that only happen with high growth tech stocks (FANG stocks). I personally invest for dividends and cash flow, and want to share today how I have experienced massive capital appreciation (and yield on cost) in my personal stock portfolio. I will share three holdings from my personal portfolio, one that I've never shared here before. While these stocks don't get as much coverage as tech stocks, they certainly perform very well (with a lot less risk, in my humble opinion).
First, I share Caterpillar (CAT). I purchased this tock in 2016 for $65 per share. It's already at $139, an increase of 114%. And, my yield on cost is 5.2%. Here's a classical dividend stock (not a high tech stock) that has proven one can make massive profits in the stock market (both capital appreciation and dividends) without risking it all on tech.
Next, I share a holding I've never discussed before on my channel, Home Depot (HD). I purchased this stock for $75 per share in 2014. Now, it's at $200 in 2018, an increase of 168%. And, I'm yielding 5.5% on cost in terms of dividend cash flow. I would say these types of gains give high flying tech stocks a run for their money. And, I'm doing it with less risk and a cash flow component! I invest for passive income, and love companies like Home Depot that truly reward their shareholders.
Last, I discuss Altria. Purchased for $16 per share in 2009, it's now trading at $58.52 in 2018, an increase of 266%. And, my yield on cost is 20%. That's right, I'm now receiving cash flow on my original investment on an annual basis that is nearly double the return of the S&P 500 (and growing). This is my first dividend growth stock yielding 20% on cost.
I discuss lessons I have learned over the years as an investor:
* I don’t get discouraged if I "lose" money in the short run. I will take this opportunity to average down (I did this with CAT).
* I understand that the gains will come sooner or later, it just takes time.
* I remind myself that value investing is difficult, and patience makes great investors.
Am I buying CAT, HD, and MO in 2018? Other than reinvesting dividends, no. I'm focused on value right now that I'm finding with Cedar Fair (FUN) and IBM (IBM). Each year, the stocks that are on sale tend to differ.
Want to learn how value stocks have outperformed growth, over the long term? This Bank of America / Merrill study is quite interesting:
Want to support my channel? Please don't forget to like, comment, and subscribe. We have a thriving investing community here. And, please don't forget to reach out on Instagram too:
Want to learn more about my experience investing in Caterpillar (CAT), a cyclical company? Here's a fun video:
Want to learn more about my position in Cedar Fair (FUN)? Check out this video:
I believe IBM is a great value stock in 2018. Learn more here:
Disclosure: I am long Caterpillar (CAT), Home Depot (HD), Altria (MO), Cedar Fair (FUN), and IBM (IBM). I own all of these stocks in my stock portfolio.
Disclaimer: I'm not a licensed investment advisor, and PPC Ian videos, Excel files, and content are just for entertainment and fun. PPC Ian videos, Excel files, and content are NOT investment advice. Also, I'm not a tax advisor and PPC Ian videos, Excel files, and content are NOT tax advice. Please talk to your licensed investment advisor before making any financial decisions. Please talk to your licensed tax advisor before making any tax decisions.
All PPC Ian videos, Excel files, and other content are (c) Copyright IJL Productions LLC.