Well, we have to hand it to Congress …
They are good at writing stimulus checks.
In less than 6 months, personal income has returned to pre-Covid levels.
Take a look …
That’s great news for stocks, since a top choice for most households who receive checks is to invest in the stock market. …
In fact, CNBC reported that those earning between $35K and $75K annually traded stocks nearly 90% more than the week just before receiving their stimulus check. That number was 82% for those in the $100K-$150K range, while it was a 46% bump for those above $150K.
The bottom line is, A LOT of money is going into the market …
So, today I want to share 2 stocks that will benefit from the stimulus coming in the next couple of months.
Plus they will pay awesome income as a bonus.
First, up …
British American Tobacco (BTI): A leading, well diversified tobacco franchise. There is tremendous brand loyalty in this industry and BTI expects to reach $5 billion in revenues by 2025.
A few things that I like about BTI:
- Investment-grade rating w/ a strong balance sheet
- Over a 7% dividend yield … 3x higher than comparable corporate bonds
- Wide moat (an edge over competitors) formed by cost advantages
- Morningstar rates them very high at a 30% discount to fair value
A tool I like to use is “fast graphs” because they provide great information on one graph.
The orange line below is key because it shows the price-earnings ratio generated by average growth.
This reveals just how undervalued the stock is …
Onto stock No. 2 …
Kinder Morgan Inc. (KMI): KMI has been one of the most resilient companies during the pandemic …
The stock has rallied 16% and announced a 3% dividend hike for next year.
AND it has much further to go with it’s fair value price up at $21.
Bring It Home
Look, I love the energy sector and KMI has a lot of value at its current price.
And although I am not a smoker, BTI is a bullet-proof income tobacco company because they have cost advantages and customer loyalty.
Most of all, these are two stocks to own for the long haul because …
You get paid an incredible income payment year after year that you can reinvest and let the magic of compound interest create income for life.
That’s what Power Income and Income Hunting are all about!
Live and Trade With Passion my Friends,
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