TSLA Among 3 Dangerously Overhyped Stocks

Stick with the value of solid dividend stocks

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TSLA Among 3 Dangerously Overhyped Stocks

Coca-Cola (KO) is a beverage company that engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide. The company has rewarded shareholders with dividend increases for 51 years in a row. Over the past decade, Coca-Cola has managed to hike dividends by 9.80% per year. Currently, the stock is trading at 19 times earnings and yields 2.80%. Check my analysis of Coca-Cola for more details.

Chevron (CVX), through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. The company has rewarded shareholders with dividend increases for 26 years in a row. Over the past decade, Chevron has managed to hike dividends by 9.60% per year. Currently, the stock is trading at 10 times earnings and yields 3.40%. Check my analysis of Chevron for more details.

Target (TGT) operates general merchandise stores in the United States. The company has rewarded shareholders with dividend increases for 46 years in a row. Over the past decade, Target has managed to hike dividends by 18.60% per year. Currently, the stock is trading at 15.70 times earnings and yields 2.70%. Check my analysis of Target for more details.

Philip Morris (PM), through its subsidiaries, manufactures and sells cigarettes and other tobacco products. The company has rewarded shareholders with dividend increases for years in a row. Since the spin-off from its parent Altria in 2008, Philip Morris has managed to hike dividends by 13% per year. Currently, the stock is trading at 17 times earnings and yields 4.20%. Check my analysis of Philip Morris International for more details.

I believe that the key to investing success is not how much a company will supposedly benefit society, but rather determine what their competitive advantage is and how durable that moat really is. After that, if you manage to purchase such a company at a fair price, and you hold at least 30 such companies in your dividend portfolio, you should do quite well for yourself in the long-run.

Full Disclosure: Long KO, CVX, TGT, CL, ADP, PM


Article printed from InvestorPlace Media, http://investorplace.com/2013/11/tsla-twtr-fb-amzn-tech-stocks-to-sell/.

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