Tag: PG

Top Yielding Dividend Aristocrats

by Fred Fuld III

Dividend Aristocrats are a group of 65 S&P 500 stocks that have increased their dividends annually for at least 25 consecutive years. They are considered to be some of the most reliable dividend-paying stocks on the market.

The Dividend Aristocrats index is maintained by S&P Dow Jones Indices. To qualify for the index, a stock must meet the following criteria:

  • It must be a member of the S&P 500 index.
  • It must have increased its dividend for at least 25 consecutive years.
  • It must have a market capitalization of at least $3 billion.

The Dividend Aristocrats index is a popular investment among investors who are looking for income and growth. The stocks in the index have a long track record of dividend growth, and they are typically well-established companies with strong financials.

Here are some of the top Dividend Aristocrats in 2023, ranked by their forward dividend yield:

  • Realty Income (O): 5.0%
  • IBM (IBM): 5.0%
  • AbbVie (ABBV): 4.4%
  • Coca-Cola (KO): 3.0%
  • Johnson & Johnson (JNJ): 3.0%
  • Procter & Gamble (PG): 2.5%
  • Pepsico (PEP): 2.7%

These stocks are all paying a high dividend yield, and they have a long track record of dividend growth. They are a good option for investors who are looking for income and growth.

Here are some of the benefits of investing in Dividend Aristocrats:

  • Income: Dividend Aristocrats are a good source of income for investors. They typically pay a high dividend yield, and they have a long track record of dividend growth.
  • Growth: Dividend Aristocrats can also provide growth potential for investors. Many of the companies in the index are well-established and have strong financials. This means that they are likely to continue to grow their businesses and their dividends over time.
  • Safety: Dividend Aristocrats are considered to be relatively safe investments. They are typically large, well-established companies with a long track record of profitability. This means that they are less likely to go bankrupt or cut their dividends than smaller, more volatile companies.

If you are looking for an investment that can provide you with income and growth, then Dividend Aristocrats may be a good option for you. They are a relatively safe investment that has the potential to provide you with a steady stream of income over the long term.

Disclosure: Author owns PEP.

Gisele Bündchen Stock Index Still Beats the S&P 500

Renan Katayama, CC BY-SA 2.0 https://creativecommons.org/licenses/by-sa/2.0, via Wikimedia Commons

by Fred Fuld III

Some of you may know Gisele Bundchen as the famous Brazilian supermodel. Some of you may know Gisele as the wife of American football player Tom Brady. Some of you may know her as both.

Unfortunately, the recent news about her relates to marital issues with Brady.

However, What Gisele should be known for is her intelligence, her beauty, and her business acumen. As a matter of fact, back in 2007 when the U.S. dollar was weak, she refused US dollars for some of her contracts and requested Euros instead.

She was the world’s richest supermodel as early as 2007, and has held that title until 2015, according to Forbes.

Back in 2007, I created the Gisele Bündchen Stock Index, which tracked the stocks that Gisele was connected to, primarily as a spokesperson or actress. The article can still be found in our Stockerblog predecessor website.

I tracked her stock index against the Dow Jones Industrial Average since then, and over the years, the Gisele stock index has continued to outperform, which you can see in the chart below. Her index even held up better than the Dow during the 2008 stock market crash.

Data Source: Yahoo! Finance: Historical Prices

Most stock market investors and stock traders today prefer to look at the S&P 500 as opposed to the Dow, as it more reflects the stock market as a whole.

So here is the Gisele index versus the S&P 500.

Data Source: Yahoo! Finance: Historical Prices

The following companies were included in the current index with information regarding Gisele’s connection. Over the years, a couple stocks were dropped due to lack of trading data for non-US companies, and added due to additional celeb endorsements.

LVMH Moët Hennessy Louis Vuitton S.A. (LVMUY) owns several companies that Gisele was the spokesperson for, including Louis Vuitton (a luxury French fashion company), Givenchy ( French retailer of clothing, accessories, perfumes and cosmetics), Guerlain (the oldest perfume house in the world), and Céline (a French ready-to-wear and leather luxury goods brand). Since 2007, the stock has increased by 733%.

She was also the advertising campaign face for Ralph Lauren Corp. (RL). That stock has gone up 27% since 2007.

Gisele was the celebrity endorser for Vivo Participacoes S.A. (VIV), the largest mobile phone service provider in Brazil and in South America. The stock has actually dropped 9% since 2007.

She starred in the comedy, Taxi, in her movie debut, and The Devil Wears Prada , both produced by 20th Century Fox, formerly a division of News Corp. (NWS) at the time the Gisele Index was created. The stock, which was actually involved in a spinoff and skews the return, is down 31% since that time.

For Disney (DIS) she was a celebrity endorser and appeared in the ‘Year of a Million Dreams’ celebration photoshoot. Disney has moved up 241% since 2007.

Gisele was a spokesperson for Procter & Gamble (PG), increased Pantene’s sales in Brazil by 40% during her celebrity endorsement. The stock has had a solid return of 230%.

Finally, she was the spokesperson for the Volkswagon (VLKAY) TV commercials. The stock has had a superior return of 748% since 2007.

Based on the above stocks in the portfolio, the Gisele Index has increased by 215.89%, versus 134.44% for the Dow and 156.79% for the S&P 500.

There is one other stock that Gisele was involved with. She appeared on the Apple (AAPL) ‘Get a Mac’ advertisements to promote the new line of Macintosh’s.

Over the years, I have left Apple out of the index because the return on it was so gargantuan, I thought it would really skew the returns and the charts.

Do you know how much Apple has increased since 2007? The stock has gone up by 5,663%!!!

Here are the charts for the Gisele Index which INCLUDES Apple.

Data Source: Yahoo! Finance: Historical Prices

Data Source: Yahoo! Finance: Historical Prices

By including Apple in the index, the return is boosted to 284%, compared to the 216% without it.

Maybe some of these stocks might look attractive to you at the right price. At some point they should become fashionable, and may continue to outperform.

Prices are beginning of year first trading day close, adjusted for splits, dividends, and capital gains distributions. The Gisele Index is a price-weighted index, similar to the Dow Jones Industrial Average.

Disclosure: Author owns AAPL and DIS.

Should You Be investing in the Olympics?

by Fred Fuld III

The 2020 Olympic Games began on Friday, July 23, in 2021 of course. If you haven’t been watching the Olympics, you are missing the greatest sports event of the year.

The Olympic Games have many sponsors and several of these worldwide Olympic Partners are publicly traded.

Some investors believe that the sponsoring of this event will help increase revenues for the company sponsors. Others believe that if these companies are putting up all this money, that they expect a return on their investment.

So if you have wondered if investing in these companies would provide a good return, then check out the results below.

Olympics Stock Index

Company Symbol Price 7/23/21 Price 8/4/21 Gain/Loss
Airbnb ABNB 138.73 147.4 6.25%
Alibaba BABA 206.53 200.71 -2.82%
Bridgestone BRDCY 21.88 21.93 0.23%
Coca-Cola KO 57.01 56.1 -1.60%
Dow Chemical DOW 60.11 60.99 1.46%
General Electric GE 101.68 102.91 1.21%
Intel INTC 53 53.9 1.70%
Panasonic PCRFY 12.21 12.19 -0.16%
Procter & Gamble PG 139.79 142.43 1.89%
Toyota TM 179.85 182.18 1.30%
VISA V 249.02 236.67 -4.96%
TOTAL 1219.81 1217.41 -0.20%
EQUAL WEIGHT RETURN -7.96%

You will notice that the worst performers to date are VISA (V) and Alibaba (BABA) and the best are Airbnb (ABNB) and Procter & Gamble (PG).

Based on an equal weighting of all the companies, the total return from the start of the Olympics on July 23 to today, August 4, is a negative 7.96%, far worse than the market as a whole. The S&P 500 was only down 0.21% during that same time frame.

Yet there is still more time for the Olympics Stock Index to recover as the events don’t end until August 8.

 

Disclosure: Author owns TM.

Like Dividend Stocks? Check Out the Aristocrats

by Fred Fuld III

Many investors prefer dividends. Yet, just because a stock pays a dividend does not make it a good stock. But if a company has been raising dividends, and raising them on a consistent basis, it probably means that the company has been doing something right.

A Dividend Aristocrat takes this concept to the extreme. It is a stock that has increased its dividend every year for at least the last 25 years.

One of the Aristocrat leaders is Proctor & Gamble (PG) which has increased its dividend over 61 years.

At 3.76%, the yield is fairly high, compared to a bank savings account, a certificate of deposit, or a money market fund.

Other well-known companies that fall into this elite category are the following:
Coca-Cola (KO) 55 years
Johnson & Johnson (JNJ) 55 years
Lowe’s (LOW) 55 years
Colgate Palmolive (CL) 54 years
Target (TGT) 50 years
PepsiCo (PEP) 45 years

If you had bought any of these stocks ten or twenty or 30 years ago, and reinvested the dividends, your yield based on your original investment would be enormous.

Disclosure: Author didn’t own any of the above at the time the article was written.