If you don’t get dividends from your equity holdings over the next three to five years, your wealth is at risk.
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New York, NY (PRWEB) January 04, 2012
While there are always individual standouts in any stock market, Mitchell Clark, contributor to Profit Confidential, thinks that owning the right large-cap companies that pay dividends will likely be the best strategy for the next three to five years.
“It’s been 11 years of significant turmoil in the stock market and, without dividends, investors would have lost money due to the rate of inflation,” says Clark.
Clark highlights several standouts during the last decade that have the profile he likes, such as Caterpillar Inc. “This company was trading at a split-adjusted price of around $20.00 per share in 2000 and proceeded to advance to over $116.00 per share, while increasing its dividends.”
“Apple Inc. was a huge standout, particularly since 2005, when the stock proceeded to appreciate from under $50.00 a share to over $400.00,” Clark writes, “Apple didn’t pay dividends, but this could change over the coming years.”
Clark believes that it’s very likely we’ll continue to get lackluster returns from the stock market for several years to come, so adding strong companies that pay dividends is a good strategy.
“With the likelihood of rising inflation, just maintaining your wealth will become a more difficult chore,” Clark says. This is why he believes dividends are so important to the equity market going forward. “If you don’t get dividends from your equity holdings over the next three to five years, your wealth is at risk.”
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.