My specialty is higher paying dividend stocks, but as I survey the market landscape daily I keep an eye on how companies are doing business wise. Currently there are a good number of businesses doing very well even in this economy. Below I will briefly point out three of them and why if you are a capital gains investor they might fit your portfolio.
Nike..symbol NKE...year after year this company continues to amaze me. They sell high priced branded shoes that they make inexpensively at a extremely high profit margins. The key is branding and making customers believe they have to own a pair or not be hip. They go out sign sports stars to push their products on young people and year after year it works. It all began with Michael Jordon and unless someone finds a way to untie sports shoes and being hip it will never end as long as their are sports stars to sign to fat contracts. Yes, it is frankly stupid to spend hundreds of dollars on shoes such as these, but remember we do the same when buying diamonds and jewelry another high profit business. Even liberals who hate the overseas factories keep a pair in their closets. Owning Nike stock you would have doubled your money in the last five years.
McDonalds...symbol MCD.. let's face it their food is ok, not good, just ok. They stay under assault from the food police. But again hipness is what counts and for young people being seen in McDonalds is cool. The music is upbeat, the selection of food makes it possible for anyone to find something to eat and they figured out long ago the future was overseas having saturated just about every nook and cranny in the US. McDonalds also has proven they got a farm system for management second to none. It seems they got the right leaders at the right time in the right place every time and everywhere. I go to McDonalds occasionally and wonder at just how they sell so much food to so many people. As a investment owning their stock has been a winner. Great capital gains and solid and rising dividend. Another double of money if you owned their stock the last five years.
Apple...symbol AAPL..Like the other two companies above owning Apple products is hip. Just look at the lines that form at their stores every time a new product comes out. Young people might not buy health insurance, but trust me they will dig deep and do without almost anything to own an Apple product, be it phone, pad, pod, etc. Steve Jobs might be dying of cancer, but he will die knowing finally his superior product line finally beat Bill Gates and Microsoft in the marketplace. Owning this stock the last five years is almost a 10 bagger. If anyone in my lifetime has done more good for making the world a better place than Steve Jobs I do not know who it is. Do not tell me he owes more taxes or has a debt to mankind after all the jobs and wealth he has created for so many people since the early 1980's.
These are just three of the companies out there that are growing and prospering in this time of uncertainly and no growth world economy. If you do your homework you can likely find more that are not thriving right now and can make you some serious capital gains over the years.
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