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Dividend Stocks A Billionaire Loves

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Want to know what dividend stocks this reclusive billionaire has in his portfolio? His private security force couldn’t keep me from finding out. – PowerPoint PPT presentation

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Title: Dividend Stocks A Billionaire Loves


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Welcome to Dividend Stocks Research Your premier
site for Rankings and Reviews of the best
dividends stocks around. For more info on
dividend stocks please visit our website
DividendStocksResearch.com
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  • Hi, My name is Aaron and Im with Dividend Stocks
    Research, today were reviewing our recently
    published article

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Dividend Stocks A Billionaire Loves
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When it comes to investing in dividend stocks,
its tough to ignore a billionaire. Especially a
billionaire who actually talked his kidnappers
into setting him free.
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Thats what Eddie Lampert did back in 2003.
Its not easy to find Eddies office in
Greenwich, Connecticut. Theres no sign, and
visitors run into the kind of security youd
expect for a guy whos worth a bundle... north of
3 billion.
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So I cant exactly stroll into Eddies office for
a friendly chat. But I have been able to check
out some of the dividend stocks he owns.
Fascinating stuff...
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Starting with a couple of hundred thousand shares
of IBM IBM. Even though IBM has been pounded, it
still pays a 2.7 dividend, and the dividend has
been growing for the past 15 years.
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Eddie bought his IBM at an average share price of
169.98. You can buy it for less right now,
so if youve ever wanted to get a better deal on
something than a billionaire, heres your chance.
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But heres something interesting to know about
Eddie, besides the fact he has homes in Florida,
Aspen, and Greenwich.
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(Security is so tight at his 38 million spread
in Indian Creek Island, Florida that his private
security team circles the island in boats.)
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Eddie Lampert also has huge positions in stocks
that DONT pay dividends. Thats because hes
made a massive bet on Sears SHLD.
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Along with running his hedge fund, ESL
Investments, hes the CEO of Sears, and owns a
boatload of Sears stock. So why does a guy like
Eddie Lampert own a dividend stock like IBM?
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Probably for the same reasons Warren Buffet
does. IBM is a great example of the two things
you should look for when youre checking out
dividend stocks to buy.
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Dividend StocksMust Give You These 2 Things
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The first thing you need is a track record of
growing dividends. Dividends that are growing
are better for your portfolio than the highest
dividend paying stocks.
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Thats because a high yield is risky. Dividend
growth is safer. Over the long haul, its how
youll make more money. Just ask Eddie Lampert
and Warren Buffet.
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And you can see why when you check out my article
on Dividend Investing Breakthroughs.
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Focus on dividend growth when youre looking at
dividend stocks to buy. But dont demand
perfection. Its not a perfect world. Even the
most solid blue chip dividend paying stocks
stumble.
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IBM ran into trouble awhile back. It cut
distributions by 80 in 1993. After dividend
growth, the second thing you want to look for is
a common sense business.
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Now we all have our own thoughts on what common
sense means. When it comes to investing in
dividend paying stocks, Im talking about a real
business that has real customers and a real
future.
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The latest fad restaurant concept with zero
franchisees isnt a real business. Neither is a
real estate developer sitting on lots of highly
leveraged land but nobody to buy the houses he
wants to build on it.
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Dividend Stocks Need A Yesterday And A Tomorrow
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The yesterday is the track record of paying
growing dividends. The tomorrow is the solid
prospect of more customers, more opportunities,
and more revenue.
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IBM clearly delivers on the yesterday. It
doesnt just give you a track record of paying
growing dividends... it gives you a well-deserved
reputation of one of the worlds best run
companies.
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The tomorrow... well, thats another question,
because it sold off its chip business and needs
its hardware and cloud services to light things
up.
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Check out this chart, and youll see the ugly hit
that IBM took in the fall of 2014. Thats when
IBM told investors that it was paying another
company 1.5 billion to take its chip business
off its hands...
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Not what you want to see... Unless youre a
patient, long-term dividend investor.
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And you cant help but think that billionaire
investors like Eddie Lampert and Warren Buffet
must feel good about IBMs future.
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If Buffet and Lampert figured IBMs glory days
were in the past, they would have bailed out.
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So heres what to do. When youre sizing up
dividend stocks, dont just keep your eyes glued
to the rear view mirror.
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As best you can, get a feel for the future of the
business your company is in, and try to
understand how the company will perform. Eddie
Lampert must believe in the future of IBM.
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And he clearly believes in the future of Sears, a
legendary retailer where sales have been on a
downhill slide for years.
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Even if you and I could slip past all the
security and make it into Eddie Lamperts office,
we wouldnt see a crystal ball on his desk. And
unless we got out in a hurry, heres what we
probably would see.
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A member of Eddies private security team staring
us down with an Uzi 9mm semi-automatic rifle.
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