Have A Coke And A Smile

Have a Coke and a Smile

Save yourself the calories and the tooth decay and buy the stock instead.

The companies that have weathered the storm in the last four weeks are well established, big name companies with rising dividends. Just look at the price chart above.

The yellow line (the bottom line in the chart) is the S&P 500. Compare the S&P500 to the three examples of what I’m calling “calorie-based-conglomerates” in the chart.

1)      Coca Cola (green line in the chart) = 125 years old and yielding 2.8%

2)      Kraft (red line in chart above) = 102 years old and yielding 3.4%

3)      McDonalds (blue line in chart above) = 71 years old and yielding 2.8%

In comparison, the US 10 Year Treasury Bond yields 2.05%. These days I feel like I have more confidence in Coca Cola, Happy Meals and Oscar Mayer Wieners to protect and grow my money than the US Government.

And really, all Western governments are looking pretty bad right now as a place to park your money. So if you are a safety-seeker and can no longer stomach the low interest rates on US Government bonds consider these industry dominators.

These big boys have been fine tuning their business models for decades and are well primed to pull through the “greater recession” that we are in right now.

As the economy worsens, people will be seeking cheaper means of nourishment. While they may not be the healthiest choices, the products these companies provide will continue to be in demand. And as people cut back on discretionary items, staples will still be purchased. Macaroni and cheese anyone?

Let us not forget the billions of consumers in Asia that are becoming more Western through their diet. This may be increasing the world’s waistline but it is also increasing these companies’ stock prices, dividends and returns.

So do you want something to smile about?

Add these and other “calorie-based conglomerates” to your portfolio and increase the waistline of your investment accounts.

Maybe I am thirsty after all.

Together, we are growing and protecting your wealth,
RC Peck


PS – If you are tired of the “pick of the month club” that so many newsletters follow and your money has been badly hurt the past four weeks than you may have already started noticing that it’s not the stocks you own but the strategies you follow that protect and grow your money in any climate. What strategies are your investment dollars following? Continue reading to learn about mine right here.