Although Valentine’s Day is still two days away, love is in the air. It’s not the type of love you’re probably thinking of, though. Rather, I’m talking about an investors’ devotion to his or her investments. You know, those stocks you could spend the rest of your life with.
What makes a company worth calling your very own, till death do you part? Well, to begin with, you’d like to see clearly defined competitive advantages, if not an economic moat, within the industry in which a company operates. Businesses that are a go-to within their respective fields tend to have staying power and are often very profitable.
Secondly, profits from a time-tested business model are a must. Profits are the first building block to receiving a dividend, and a dividend is your ticket to rapid wealth creation. Being able to reinvest your payout back into more shares of dividend-paying stock leads to a compounding pattern of more shares of stock owned and, therefore, a bigger dividend payout. Not to mention, dividend-paying stocks, which we’d expect to be steadily profitable, tend to outperform non-dividend-paying stocks quite substantially over the long run.
Third and finally, having a brand name can do wonders. Companies that are well-recognized by the public or business community typically have no trouble engaging with their customer base and developing a loyal following.
With this in mind, here are 10 stock market sweethearts all investors can hold near and dear to their hearts.
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