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Non-Tech : Philip Morris - A Stock For Wealth Or Poverty (MO) -- Ignore unavailable to you. Want to Upgrade?

To: Geoff who wrote (2458)	10/6/1998 5:22:00 PM
From: sea_biscuit	Respond to of 6439

Thanks. And congrats to everyone too. Litigation crap has been there, and will be there even in the future. But here is a little nugget on why staying with MO over the long run has proved to be very profitable, to say the least. Tigue and Lisanti's book "Dividend Rich Investor" has two important tables -- one titled "free stocks" where the increasing dividends alone have more than paid for the price of the stock over a period of 10 years or so. And another table lists "yield on cost". Looking at some of those stocks, even I was flabbergasted! -- 12%, 15%, 17% yields on cost. So, at that point, essentially, you don't need stock-price appreciation at all and you don't even have to bother! The humongous yields take good care of you! A striking example is that of Philip Morris -- an investor who bought Philip Morris in 1981 for a split-adjusted $1.75 would have been raking in $1.46 in dividends per share in 1996, an 84% yield (yes, eighty-four percent, no typo there!) on the initial stock price. You don't see this kind of yield even on D-rated junk bonds in danger of bankruptcy. A remarkable lesson on the wonders that a long-term perspective can bring to the truly diligent investor. Dipy.

To: Geoff who wrote (2458)	10/6/1998 7:41:00 PM
From: md1derful	Respond to of 6439

G:Agreed, absolutely great stock action...is this THE breakout..still not sure, but I'll take it any way I can get it...we need these highs confirmed, if the volume on these breakouts continues to be relatively light

To: Geoff who wrote (2458)	10/6/1998 7:44:00 PM
From: billy d	Respond to of 6439

I also noticed that MO did finish a bit off of its high but one important point I'd like to make is that since I have been a MO shareholder (about 3 months) this has been the trading pattern. Rarely has there been a day when it finishes at or near its high but guess what? We are moving up while this market goes in the crapper and all of this without a settlement and today reaching a new high! Needless to say I'm impressed! To all you guys and gals wh have been in this stock longer then me and have had the patients to hang in there all of this time, CONGRATULATIONS! I think the best is still yet to come.