The topic this week is buying a company that doesn’t pay a great dividend, but has the growth prospects to pay a huge dividend. And the story starts with Apple (Nasdaq: AAPL).
Nobody ever thought of Apple as an income producer until the last few years. But if you bought this stock at its lower price – for example, many people bought it for $11 per share – your dividend yield right now would be over 100%.
That’s the potential a good growth company has if it is investor-friendly. And the one I like this week is Halliburton (NYSE: HAL), for many reasons…
It’s in the oil services business, which I’ve told you many times is a place that we need to be. This is where the money is going to be made without the great risk that the exploration and production companies take.
Now, Halliburton pays only a 1.1% dividend. But its growth prospects for the next 50 years are gigantic. With the energy boom in North America – again, as I’ve said many times in this segment – this is where you want to have your money. You’ve got to be in some type of growth without high risk.
And Halliburton meets all of those requirements. It’s in an essential industry… energy. It has a fabulous balance sheet. It dominates its market. And it’s heavily invested in the North American energy boom.
Take a look at Halliburton.