This ‘Hall of Fame’ Income Stock Has Returned 457%
For the past few weeks, I’ve been telling my readers about an elite group of high-yielding stocks. I call them my “High-Yield Hall of Fame.”
That’s because they are hands-down among the best performing, most reliable and most shareholder-friendly companies on the planet. And owning even a few of these stocks can help turn your income stream into a river of cash.
Take a look for yourself, and you’ll see what I mean.
These eight little-known income payers haven’t just outperformed the market over the past decade… they’ve absolutely annihilated it.
Now with a track record like this, you’d think more investors would know about these elite stocks. Yet I’m willing to bet nine out of 10 investors haven’t heard about them.
Why? Well, they aren’t the traditional “boring” dividend payers most people think of — after all, you can only get so far by following the herd with stocks like McDonald’s or Wal-Mart.
But the “smart money” has known about these stocks for years. I’m talking about billionaire investors like Jim Simons, legendary investment firms like Vanguard and Goldman Sachs — heck, one of these stocks is even owned by 11 different members of Congress.
You see, the smart money knows what it takes to find an investment that can reward shareholders year after year — just like my High-Yield Hall of Fame stocks have.
They all share important traits that make them truly remarkable investments:
1) They outperform in any market
2) They reward shareholders year after year with growing dividends
3) They possess unique advantages that competitors can’t replicate
Finding a company that possesses all of these traits is easier said than done. What’s more, you have to be willing to venture off the beaten path a little bit in order to find them.
Take, for example, a stock like Six Flags Entertainment (NYSE: SIX).
This company, which is the largest owner and operator of amusement parks in the country, might not be the first name that comes to mind when looking for an elite income stock. But upon closer examination of the three traits I just mentioned, it qualifies on all counts.
– For one, shares have risen 28.2% over the past 12 months, while the market is currently down 3.6% for the year. But this stock has also been on a steady tear since it went public in early 2010, gaining a whopping 457% compared to the S&P 500’s 75% return.
Up to 175 million Americans travel hundreds of miles each year to visit the company’s unique destinations, which include 18 amusement parks in the United States, along with several water parks and amusement centers in Mexico and Canada.
Tickets to the company’s theme parks run upwards of $50. And while attendance dipped slightly in 2014 (down 2%), higher customer spending within the parks actually led to a 6% increase in revenue for the year.
The firm is on pace to bring in roughly $1.3 billion in sales for 2015, continuing its steady trend of growth…
Much of Six Flags’ growing sales (and share price) in the past few years can be attributed to an improving economy, where job creation, wage growth and cheap gas have contributed to more families visiting the company’s parks with more cash to spend.
But you can see in the chart above that even during the sluggish recovery years following the Great Recession, Six Flags was able to grow.
– And Six Flags has a great dividend record. The firm’s first dividend payment was just $0.09 per share when it went public, but in just five years that payout has risen to $2.03 per share — an increase of more than 2,000%. That’s an average dividend increase of 480% per year.
Now, of course, that kind of growth rate can’t continue forever. But it shows just how quickly management committed to rewarding shareholders. Today, the stock yields about 4.5% — more than double the market average.
– When it comes to competitive advantages, Six Flags has them in spades.
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The Six Flags brand has become synonymous with affordable family entertainment. That strong branding, along with high barriers to entry in the theme park industry, has given the company a wide moat around its business.
Think about this: building a new park takes at least three years and a minimum of $300 million in upfront construction costs. So even if other companies were interested in competing with Six Flags, the monetary obstacles and time commitment alone would be enough to deter them. This means Six Flags has attractive markets like Atlanta and Dallas all to itself.
Pack Your Portfolio With Stocks Like This
When it comes down to it, a stock like Six Flags really offers everything investors should look for in an elite income stock: a track record of market-beating returns, a lofty dividend yield, and a wide economic moat to ward off competitors.
While current valuations don’t leave the stock as much upside as some of the stocks in my High-Yield Hall of Fame, I can see the stock having 10% upside from current levels. Coupled with its strong 4.5% yield, I think it could easily net investors a solid double-digit return over the next year.
The truth is, every investor needs a few Hall of Fame stocks in their portfolio. With Hall of Fame stocks, you can rest easy at night knowing you have a group of investments that outperform even the market’s most popular stocks…
Each of my High-Yield Hall of Famers possesses a dividend yield that’s up to two… four… even six times bigger than the market. And on average these stocks have seen their share prices skyrocket by more than 300% in the past decade.
There’s no reason you shouldn’t be loading up on shares of these elite, under-the-radar investments today. I’ve even put together a full report on all eight of my “High-Yield Hall of Fame” stocks. And you can access it now, here.