The Secret That Can Carry You Through Your Investing Life

Dividends, plus the passage of time, can make a stock price chart look silly because of the easily understated nature of dividends in the wealth-building process.

That’s it. That’s the secret to building wealth. It’s amazing how much different investing appears when you only look at a stock chart (such as you typically see on CNBC) and then step back and adjust it for the passage of time to get a full picture of a company’s total returns.

Because dividend payouts typically amount to 2%, 3%, 4%, or 5% in a given year, they can become quite easy to neglect, perhaps regarded to the untrained eye with the same appreciation given to a dollar bill found in a seat cushion.

But if you find a company that either has a law starting yield with a high dividend growth rate, or has a pattern of returning a good chunk of income … Read the rest of this article!

Contrarian Investing in Rural America

By making court appearances on behalf of clients in small towns across Missouri, I have observed that certain businesses have extremely strong footing in each and every small town. People get gas at the Casey’s General Store or the Exxon franchisee station, go to McDonald’s or Dairy Queen to eat, and grocery shop at Wal-Mart or Kroger.

People rarely think in these terms, but of McDonald’s 34,000 locations, almost 22,000 of them are in areas with populations less than 15,000.

I contend that these businesses, when bought at the right initial price of 15x earnings or cheaper, will lead to 10-12% annual returns over the long haul. I also contend that these investor returns will be well-earned, in that one will encounter many doom-and-gloom newspaper headlines as they go through the process of earning these superior returns.

There are two main grounds for why these rural staples of American capitalism … Read the rest of this article!