New York, New York (PressExposure) February 10, 2012 -- Mitchell Clark, contributor to Profit Confidential, points out that the stock market was flat over the last 12 months, while McDonald's appreciated 35% not including dividends. Over the last two years, McDonald's appreciated 60% on the stock market and, over the last five years, the stock went up 141% not including dividends. According to Clark, this proves that you can do just as well owning the right large-cap stocks as you can speculating on the latest high flyers, with a lot less risk.
"It's kind of odd to think that a mature business like burger flipping could be so profitable, but this company has rewarded shareholders tremendously well," says Clark.
"I've always been a fan of investing in large-cap stocks, especially those that pay dividends," states Clark. Even though he spends most of his time researching smaller companies, he's seen stock market portfolios with a handful of large-cap stocks create a lot of wealth for people.
"The dividends compensate you for the prevailing rate of inflation and, for the most part, you sleep well at night knowing what you own," says Clark.
When the stock market collapsed in 2008 and then hit a low in March of 2009, McDonald's basically traded flat, just below $60.00 a share. The stock recently hit an all-time record high of over $101.00 per share, with a dividend yield of 2.8% at the time, according to Profit Confidential.
"Not bad at all if you ask me. The stock split seven times since the early 80s and is now due for another split," notes Clark.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it "begged" its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
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Profit Confidential is Lombardi Publishing Corporation's free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi's current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six