Investing Fables – Issac the Old Man

 

Investing Fables

Issac the Old Man

Once upon a time there was an old man named Issac, who sought out on a journey looking for hope. He walked with a wooden cane and had no clue where he might find such an aspirational idea, yet he was undeterred in his pursuit. The first thing he did was store his excess belongings at Sovern Self Storage, SSS, a reliable public storage facility because he knew he would be gone for a very long time. Currently yielding 3.6%, he believed in public storage and found the rates fair for users and investors alike. His trip would take him to faraway lands, Europe, Africa, the Far East. He would see the Great Wall of China, and discover the country with over 1.3 billion inhabitants. China, a country of old history and modern achievement; as for the latter, Issac will be travelling mostly on the Chinese railroad Guangshen Railway GSH. Guangshen is engaged in passenger and freight transportation serving over 100 million riders per year, and at 4.3% dividend it’s a ride worth taking, “all aboard”. Keeping in touch with the outside world when travelling in areas that are remote is important. Everyone needs to have a backup plan with precision communication and intelligence equipment at all times. That’s the easy part – Issac’s childhood friends were the Harris twins next door. Their family practically invented high end defense communication systems and equipment, hence, the Harris Corporation HRS products should work well and the 3.3% quarterly dividend doesn’t hurt either.

Isaac was in a hurry to find hope. With the urgency of an unsettled world with its lost jobs, divisive legislators, financial uncertainties and an absence of human touch, time was of the essence. Normally, an expedition of this sort would be thoroughly planned but not this time. Isaac moved quickly without hesitation, he packed light and stocked his carry-on with essentials from his local Walgreen’s WAG. Why not? Walgreen’s is a one stop shop for anyone in a hurry and looking for consistency, they’ve raised their annual dividend consecutively for the past 20 years, so getting a flu shot and a .90 cent dividend is just smart travel.

Travelling in the far-East can be a bit unnerving when it comes to health and well being. It reminds me of the quote from the Wizard of Oz, “lions and tigers and ducks – oh no”. Ducks! What are you talking about? Put it this way: when the rains fall, the ones having all the fun are the ducks. American Family Life Assurance Company of Columbus or AFLAC AFL is there when protection is needed the most and yielding 3.3% to shareholders every quarter. Did you know that AFLAC has over 50 million policy holders, 50 consecutive quarters of increased earnings and over 20 years of annual dividend increases? Whether it’s a simple dental cleaning or a serious accident, whether a hospital stay, life, or cancer specific policy – AFLAC is a name to count on. And since Issac is not far from Japan, he’ll be comforted knowing that 75% of AFLAC’s revenue comes from the “land of the rising sun”.

Using maps, charts and sophisticated software applications is essential to finding the unknown. Issac was a diligent student – using Word documents, Excel spreadsheets and the Internet Explorer steadfast in his quest for hope. He was old school and using the Microsoft MSFT suite of applications gave him the confidence that he needed to search, organize and put into words the strategy that would enable him to succeed. Isaac was so confident in the Microsoft Corporation that he bought the stock before he left and decided to have the 2.8% dividend reinvested.

After a long tiring expedition that appeared empty handed, Issac returned home. When he arrived back to his home in the United States it was early in the afternoon. To settle himself a bit, Isaac drove to the nearby lake and went for a walk along the shoreline. He thought about his life now, the past and the future. He felt content knowing that in the U.S. the healthcare and assisted living facilities were the best in the world. He thought that in America we are fortunate to have companies like HCP, Inc. HCP that invest into healthcare infrastructure – HCP uses the REIT structure that pays out 90% all of its earnings to its shareholders that equates to a current rate of 4.9%. The hours rolled by and as twilight set in, Isaac rested on the rocky embankment and could see faintly his reflection in the water. At that moment he realized he found what he’d been searching for; the hope he was looking for was deep inside himself.

William Corley is a registered principal of 1st Discount Brokerage.

1st Discount Brokerage, Inc. is member of FINRA, SIPC and a Registered Investment Advisor.

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