Friday, December 30, 2011


One of the Safest Stocks in the World is a “Buy” Right Now

If you’re a long-term investor, this stock should be at the top of your “buy” list right now.
In short, the company is a monopoly, it’s growing its earnings, it’s boosting its dividends, and it’s spending tens of billions of dollars to buy back its own stock.
It also has virtually no debt and is one of just four S&P companies that hold the coveted “AAA” credit rating — making it one of the safest stocks in the world.
Yet despite all of this, remarkably, shares are dirt cheap and the company is paying out its highest yield in history.



Billionaire investor Warren Buffett once said “…in effect, [this company] has a royalty on a communication stream that can do nothing but grow.”
In recent months, prominent money managers and hedge fund giants like David Einhorn, Donald Yacktman, Bill Nygren, and Dodge & Cox have been gobbling up shares of this stock like crazy.
It’s also a favorite investment among our elected officials: according to the latest data out of the Center for Responsive Politics, a jaw-dropping 70 members of Congress own this stock (28 Democrats, 42 Republicans).
Amazingly, most “regular” investors don’t realize what a compelling buying opportunity this company is right now — particularly for its long-term income potential.
For example…
If the company keeps growing its dividends at the same rate at which it has since 2005 — which equates to a 150% boost every seven years — then in just 14 years from now you could be collecting a 19.2% annual yield on the shares that you buy right now.
Hold for another seven years and you could collect a 48% annual yield… from dividends alone.
This is entirely possible when you consider its ultra-safe 23% payout ratio and the rate at which the company is growing both earnings and dividends.
In short, it’s the ideal income stock to buy today and hold for decades.
You may be surprised then when we tell you that the company we’re talking about is tech giant Microsoft (Nasdaq: MSFT).
Analyst Dan Ferris is actually the one who brought this opportunity to our attention.
In short, he recently noticed how Microsoft’s share price hasn’t gone anywhere in years — yet the value of its business has absolutely soared.
For example, over the past seven years — which includes the “Great Recession” — Microsoft has more than doubled its dividends and nearly tripled its earnings per share.
Take a look…
At the same time, the company has spent over $81 billion buying back its own stock.
With these factors in mind, you’d think its share price would be through the roof.
But when you consider it’s now trading for under 10 times earnings, the stock is as cheap as it has been in years.
In addition, anyone who buys today can lock in a 3.1% yield — an all-time high for Microsoft.
Take a look…

Action to Take: If you’re a long-term investor… and you’re interested in creating what could be the ultimate portfolio for a lifetime of safe, reliable and ever-increasing income… then consider buying shares of Microsoft (Nasdaq: MSFT) today.

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