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The Most Hated Company on Earth Is Making Investors Rich
Street Authority ^ | 20 Feb 2012 | Paul Tracy

Posted on 02/20/2012 11:47:08 PM PST by Cronos

>I can't think of a stock that's more hated.

I've written about this company several times before. I've personally owned it for years. But just about every time I mention it, I end up receiving nasty emails admonishing the fact that I would cover... let alone recommend... investors own shares of this company.

In fact, it happens so often that I instruct our staff to put in a mention that this investment isn't for everyone whenever they cover it. If you don't want to invest in this stock, I can certainly understand. But if you have an open mind toward this black sheep, then you're likely to appreciate what it can do for you.

Simply take a look at its performance so far in 2011...


In a year marked by credit downgrades, the European debt crisis and stagnating growth, the most hated company on the planet -- Philip Morris International (NYSE: PM) -- is still making investors rich. And that comes when the broader market has been a roller coaster ride.

 
In fact, Philip Morris touched a new 52-week high on Wednesday, Nov. 30.

Unfortunately, I've noticed that more and more investors seem to be tricked into thinking investing has to be complicated. But stocks like Philip Morris prove that making money doesn't have to be hard.

Philip Morris doesn't have a complicated business model. It is simply one of the most dominant and shareholder-friendly companies on the planet. The company does business in 180 countries and owns seven of the world's top 15 global brands in its market.

But it has also made a mission of rewarding its shareholders. In the past three years alone, it has returned more than $12 billion in dividends while increasing the payments per share by 43%. Today, the shares pay a yield of more than 4%.

Then there are the buybacks. Since May 2008 the company has repurchased more than $20 billion in stock -- or nearly 20% of the outstanding shares.

All of these moves simply make the stock more valuable, even if earnings don't rise a cent. And as you can see, that's showing up in the share price as well.

I must admit, I'm a bit biased though. I personally own Philip Morris and also selected it as one of my "10 Best Stocks to Hold Forever."

Of course, with investing there's never a surefire thing. There's no quality a company can possess that will guarantee its success.

Action to Take -- > But when you can find companies like Philip Morris that dominate their market and are returning billions to investors, these are the sort of stocks that can still deliver strong returns in nearly any market -- including this one.


TOPICS: Business/Economy
KEYWORDS: cigarettes; stocks
vice stocks....
1 posted on 02/20/2012 11:47:16 PM PST by Cronos
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To: Cronos
Then there's AAPL. Their products are habit-forming but not carcinogenic.

If you include them, the S&P earnings grew 8.4%. Exclude them, and it only grew 5.3%

2 posted on 02/20/2012 11:57:10 PM PST by cynwoody
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To: Cronos

Vice Mutual Fund
http://www.usamutuals.com/vicefund/phil.aspx


3 posted on 02/21/2012 12:00:31 AM PST by 2ndDivisionVet (You can't invade the US. There'd be a rifle behind every blade of grass.~Admiral Yamamoto)
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!

4 posted on 02/21/2012 12:05:18 AM PST by Bradís Gramma (PRAY for this country like your life depends on it....)
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To: Cronos

Most hated corporation is Phillip Morris?

I thought it was Haliburton?

Or Ben & Jerry’s!


5 posted on 02/21/2012 12:06:11 AM PST by hawkeye101 (Electing lawyers to political office is like hiring a raging alcoholic to run your bar!)
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To: Cronos
Smoke 'em if you got 'em...


6 posted on 02/21/2012 12:14:00 AM PST by Lazlo in PA (Now living in a newly minted Red State.)
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To: 2ndDivisionVet
Got that hated carbon stock?

Kinder Morgan Energy Partners L.P.(KMP). Yield at current price = 5.18%. Dividend has been raised in 42 of the last 47 quarters.

10 year chart

yitbos

7 posted on 02/21/2012 12:20:18 AM PST by bruinbirdman ("Those who control language control minds." -- Ayn Rand)
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To: FReepers


New Server Fund!

Donate Here!

Less than $2.9K to Go!

8 posted on 02/21/2012 12:22:10 AM PST by onyx (SUPPORT FREE REPUBLIC, DONATE MONTHLY. If you want on Sarah Palin's Ping List, let me know.)
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To: Cronos
Reading the headline, I thought they might be talking about Goldman or any of the other "too big to fail" banks and brokers; or the health insurance companies who make billions by denying care to and thus killing their customers; or Fannie and Freddie and other welfare black holes; or Government Motors and all the other union bailouts sucking the public teat; or just about any of the Mainstream Media Companies shilling for libtards; or any of the numerous alternative energy owned by Democrat Fat Cat donors who are receiving kickbacks for bankrolling Obozo; or perhaps even the Federal Reserve.

My mistake.

9 posted on 02/21/2012 12:51:26 AM PST by Zakeet (The idiot Obozo is to competent leadership as an Etch-A-Sketch is to art)
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To: Cronos

I thought Halliburton was the most hated company in the world? Even though Slick Willy Clinton chose them for work in the Balkans.


10 posted on 02/21/2012 12:58:32 AM PST by TigersEye (Life is about choices. Your choices. Make good ones.)
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To: Cronos; All

Anyone know what the ten best stocks are without us having to listen to a 30 min video?


11 posted on 02/21/2012 1:43:48 AM PST by patriot08 (TEXAS GAL- born and bred and proud of it!)
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To: patriot08

I have been very pleased with the tracks of three Vanguard funds VMMSX (Emerg Mkts select), VGPMX (precious metals & mining) and VGENX (energy - NOT green energy.) These three funds, all managed, have a way of hedging each other, and are in themselves a hedge (or represent) a hedge against the Dow and S&P 500. Might be worth a look. I am staying in for the next few years at least and am happy to be “away” from the volatility of the NYSE’s “favorites.” These stocks ARE volatile, but in a way which seems to counterbalance prevailing ups and downs. Yes, I know VMMSX has been roundly criticized, and that’s part of why I believe it is a smart choice. Your thoughts welcome.


12 posted on 02/21/2012 2:05:43 AM PST by golux
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To: patriot08

Well, there was one analyst who stated that, if AAPL were valued as any other company, its share price is headed to $2,300 ...


13 posted on 02/21/2012 2:49:00 AM PST by PIF (They came for me and mine ... now it is your turn ...)
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To: Cronos

14 posted on 02/21/2012 3:00:41 AM PST by iowamark (The fault, dear Brutus, is not in our stars, But in ourselves)
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To: Cronos

http://www.youtube.com/watch?v=fIN8MmMloZE
SMOKE! SMOKE! SMOKE! (THAT CIGARETTE)

“”Now I’m a feller with a heart of gold
And the ways of a gentleman I’ve been told
The kind of guy that wouldn’t even harm a flea
But if me and a certain character met
The guy that invented the cigarette
I’d murder that son-of-a-gun in the first degree

It ain’t cuz I don’t smoke myself
And I don’t reckon that it’ll harm your health
Smoked all my life and I ain’t dead yet

But nicotine slaves are all the same
At a pettin’ party or a poker game
Everything gotta stop while they have a cigarette

Smoke, smoke, smoke that cigarette
Puff, puff, puff and if you smoke yourself to death
Tell St. Peter at the Golden Gate
That you hate to make him wait
But you just gotta have another cigarette

Now in a game of chance the other night
Old Dame Fortune was a-doin’ me right
The kings and the queens just kept on comin’ round

And I got a full and I bet ‘em high
But my bluff didn’t work on a certain guy
He just kept on raisin’ and layin’ that money down

Now he’d raise me and I’d raise him
I sweated blood, gotta sink or swim
He finally called and didn’t even raise the bet

So I said “aces full Pops how ‘bout you?”
He said “I’ll tell you in a minute or two
But right now, I gotta have me a cigarette”

Smoke, smoke, smoke that cigarette
Puff, puff, puff and if you smoke yourself to death
Tell St. Peter at the Golden Gate
That you hates to make him wait
But you just gotta have another cigarette

(Ah, smoke it! Hah! Yes! Yes! Yes!)

The other night I had a date
With the cutest little girl in the United States
A high-bred, uptown, fancy little dame

She loved me and it seemed to me
That things were ‘bout like they oughta be
So hand in hand we strolled down lover’s lane

She was oh so far from a cake of ice
And our smoochin’ party was goin’ nice
So help me cats I believe I’d be there yet

But I give her a kiss and a little squeeze
And she said, “ah, Marty, excuse me please
I just gotta have me another, cigarette”

And she said, smoke, smoke, smoke that cigarette
Puff, puff, puff and if you smoke yourself to death
Tell St. Peter at the Golden Gate
That you hate to make him wait
But you just gotta have another cigarette.””


15 posted on 02/21/2012 3:05:28 AM PST by iowamark (The fault, dear Brutus, is not in our stars, But in ourselves)
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To: Cronos

Okay. But what is the actual price of PM stock?


16 posted on 02/21/2012 3:37:17 AM PST by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all -- Texas Eagle)
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To: Cronos

Never mind. I found it. $81.64 as of 2/17/12.

P/E is 18.64

Is that a decent P/E?


17 posted on 02/21/2012 3:45:10 AM PST by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all -- Texas Eagle)
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To: Texas Eagle

that’s a low P/E ratio. Tech stocks are higher.


18 posted on 02/21/2012 3:57:01 AM PST by Cronos (Party like it's 12 20, 2012)
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To: hawkeye101

Ben and Jerrys far leftist...wouldn’t buy their ice cream under any circumstances...they make a fortune in this country and hate it...


19 posted on 02/21/2012 4:27:01 AM PST by goat granny
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To: iowamark

I’ll be glad to buy him all the cigarettes he can smoke.


20 posted on 02/21/2012 5:02:56 AM PST by Farmer Dean (stop worrying about what they want to do to you,start thinking about what you want to do to them)
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To: Cronos

Thanks


21 posted on 02/21/2012 5:40:59 AM PST by STJPII
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To: bruinbirdman

Reference bump! ;-)


22 posted on 02/21/2012 6:28:11 AM PST by Tunehead54 (Nothing funny here ;-)
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To: Farmer Dean

You already do,the Obama’s are the free ride tax payer bus.


23 posted on 02/21/2012 7:38:36 AM PST by Vaduz
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24 posted on 02/21/2012 8:33:02 AM PST by TheOldLady (FReepmail me to get ON or OFF the ZOT LIGHTNING ping list)
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To: Cronos

From reading the blurb I would have guessed Haliburton...


25 posted on 02/21/2012 10:47:57 AM PST by JimRed (Excising a cancer before it kills us waters the Tree of Liberty! TERM LIMITS, NOW AND FOREVER!)
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