Sin stocks: You hate them until you invest in them
Huge dividend growth. A record of clobbering the S&P. There's almost nothing for investors to dislike about these companies -- except perhaps the products they produce.
More than a decade ago, major tobacco companies faced a possibly lethal headache.
Yup, Tobacco, has been much better than a "great investment" they have been spectacular...
Plus the 3 we hold pay an average of about 5.3 - 5.5%, those are just extra coupons ontop of the appreciation....Long term for years.
Only last week, the new Edelman public relations survey said the financial services profession is the least respected of eighteen professions surveyed. Two German economists announced their research suggests capitalism is making us "evil." Finally, Pope Francis said money simply seeking the highest returns is causing many of the world's major problems. In short, it might have been better to close by saying "I believe it's ok to loosen your tie." A few investors, and yes they may be few these days, still believe Gandhi was correct that, "One man cannot do good on one area of life while doing harm in another area. Life is one indivisible whole." And my mentor Sir John Templeton, about whom I've written two books, believed he made sufficient returns even though he declined to invest in the sin stocks.
Founder, The Financial Seminary
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