News Analysis date published New: 
Monday, August 20, 2012 - 10:30
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Monday, August 20, 2012 - 10:37
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Monday, August 20, 2012 - 10:30

World's Greatest Business No. 1: Increasing Dividends 21% in a Year

Monday, August 20, 2012 10:30 AM

I've found 12 stocks that have done something remarkable...

In arguably the most volatile period since the Great Depression, these companies have seemingly ignored every "hiccup" the market has been through.

In the past year (ended June 30), these stocks have gained an average of 29.4%... compared to just 5.4% for the S&P 500.

In the past five years, the S&P 500 has been up just 1.1% (dividends included). While the overall market has languished, these 12 stocks have returned an average of 68.4% during the same period.

Even better, in the past 10 years, they've returned an average of 181.2%... nearly triple the S&P's 68.1% return.

But all of this comes with an added benefit -- massive dividend increases.

For example, just days ago, one of these 12 stocks increased its quarterly dividend payment by 75%. And another one that I will tell you about in a moment has raised its dividend payments 21% in just a year.

I call these 12 stocks the "World's Greatest Businesses." There are no guarantees, but my research shows this handful of stocks could be all that investors need to not only beat the market... but consistently grow their wealth -- and income -- year after year.

So how are these stocks able to beat the market... while raising their dividend payments so steadily?

It's because they share 11 traits that I've identified as intrinsic to the world's most successful companies.

Now, I don't have the space to tell you all about these 11 characteristics in this essay (you can read about all 11 traits here). But I can tell you about one of the most important traits for income investors:

The world's greatest businesses return billions of dollars to investors in the form of dividends and buybacks.

Take the first company I've identified as one of the world's greatest businesses. It owns stakes in dozens of infrastructure monopolies throughout the world.

It owns electric grids in Chile... railroads and coal facilities in Australia... ports all over Europe... toll roads in South America... and timberland in the United States and Canada.

In total, about 80% of the partnership's revenue is under contracts or is regulated. Meanwhile, this practically guaranteed revenue is coming from one of the most compelling portfolios I've ever seen.

Individually, each of these holdings would be a great business to own. But this security lets you own dozens of these money-making monopolies.

And yet, I'd be willing to bet that less than one in 10 investors knows about this gem, Brookfield Infrastructure Partners (NYSE: BIP).

Like any great business, Brookfield generates enormous cash flow and returns a hefty portion of that cash to its investors.

Brookfield Infrastructure pays $0.375 per unit each quarter. That's a 21% increase in just the past year, giving the units a yield of 4.0%.

But I think that distribution is going to rise in the years ahead. Brookfield explicitly states its aim is to raise distributions 3-7% a year, while aiming to return 60-70% of its net income to investors in the form of distributions.

How many other investments tell you that it's their explicit goal to continue increasing distributions... and at a rate that outpaces inflation?

And as you would expect with everything I've told you, Brookfield has topped the market for years. The company first went public in early 2008. As you can see, the stock has soundly beaten the market ever since.

Even Forbes has chimed in on this investment, saying a few months ago, "With rising estimates, strong growth projections, a fat 5% dividend yield and reasonable valuation, Brookfield Infrastructure offers a lot to like."

Action to Take --> But Brookfield is just one of 12 great businesses I'm eager to tell you about...

That's why I've put together a special presentation called The World's 12 Greatest Businesses. You can learn more about these stocks -- including several names and ticker symbols -- by visiting this link. Given how these 12 stocks have beat the market year after year, you won't want to miss it. Click here to read now.

Paul Tracy does not personally hold positions in any securities mentioned in this article.
StreetAuthority LLC owns shares of BIP in one or more of its “real money” portfolios.