Do you want to earn an extra R5,100 per month from simply opening an SMS
What I'm about to show you only takes about five minutes to put into action...
You won't have to crunch any numbers...
You won't have to calculate anything...
A bad acquisition is a 1000 times worse than paying a dividend!
No shareholder in a company wants their capital invested in a dog.
And bad acquisitions happen much more often than you realise and to some of the most savvy businesses.
Just consider these horrible acquisitions made by Woolworths and Famous Brands.
Woolworths: In 2017, Woolworths spent around R511 million to fix Australian retailer David Jones. But ploughing money into its Australian business wasn’t successful. In 2018, the company announced it reduced the carrying value of David Jones assets by around R6 billion. Woolworths even admitted it overpaid for David Jones when it bought the retailer for about R20 billion. This cost shareholders a cut in dividend of 18%!
Famous Brands: In 2016, Famous Brands ventured out of South Africa when it bought UK fast-food chain GBK. But since the acquisition, GBK hasn’t delivered the desired returns.. It also lost market share to other UK premium burger chains. GBK’s operating loss widened to R40 million. The consequence of this failed acquisition saw Famous Brands scrap its dividend for the first time in 13 years. Zero value returned to its shareholders!
Today, both stocks have lost value because of management’s poor acquisitions. And consequently, investors have lost a lot of money.
Ten filthy secrets to get rich quick
Have you noticed how some people always seem to have more money than others? They don’t necessarily have better jobs. Nor do they always earn amazing salaries. They just have more money.
But where... How... Did they get it?
What’s their secret?
Well, I’ve just released my new book - Little book of Big Income - 10 Filthy secret to get rich quick – In it you will discover how ordinary people can become extraordinarily wealthy just by applying some fairly simple techniques – techniques the rich use to get even richer. But the secret to how they do it will astound you – the rich don’t do anything special, they just do it in a very special way, as I’ll explain in my e-book.
I’m releasing 300 FREE copies starting today so if you want to reserve a copy of one of these 300 right now, simply claim your copy of Little Book of Big Income Secrets.
It’s a fact – Dividend paying companies have consistently outperformed non-dividend paying companies by as much as 100% - Here’s why!
Dividends have more reliable and consistent earnings. And a general investing rule of thumb is.. stock prices follow earnings.
Douglas J. Skinner and Eugene F. Soltes, professors at the University of Chicago and Harvard University, found that:
“…reported earnings of dividend-paying firms are more persistent than those of other firms and that this relationship is remarkably stable over time.”
In fact, over the last 20 years, dividends have been one of the most effective and consistent sources of investment returns. Over 47% of the JSE All Share Index’s total return can be attributable to dividends!
And over a 10-year period (since 2008 the financial crisis), JSE dividend-paying companies returned nearly 100% more than non-dividend paying companies.
So without question, high dividend-paying shares should form part of your investment portfolio.
See you next week,
Managing Editor, Real Wealth
If you want to invest in high dividend paying shares that constantly pay and grow their dividends, then you can find these lucrative opportunities in The Little Book of Big Income.