Patient investors have amassed millions through these three lucrative stocks.
Millionaire-Making Stocks: Home Depot, Amazon, and Altria
Three companies - Home Depot, Amazon, and Altria - have become millionaire-makers for patient investors over several decades, thanks to their consistent growth, solid business models, and positions in consumer-driven markets.
Home Depot (HD), a home improvement retailer, started trading in 1981 at around $12 per share. Over the years, its steady expansion alongside rising housing and renovation trends led to substantial stock appreciation. Despite some recent fluctuations, Home Depot remains a core holding in retail and consumer discretionary portfolios, reflecting ongoing investor confidence in its longevity.
Amazon (AMZN), initially an online bookstore, transformed into a global e-commerce and cloud computing giant. Its relentless reinvestment into infrastructure, technology, and new markets drove explosive long-term growth. Amazon's significant role in consumer discretionary indexes underscores its fundamental impact on the sector's returns.
Altria (MO), historically a leading tobacco company, built wealth for patient investors through consistent dividends and gradual share price appreciation. Known for shareholder-friendly policies and stable cash flows, Altria attracted investors looking for income plus capital growth over decades.
The common thread among these companies is that patient investors who held through market cycles and reinvested dividends saw their holdings multiply into million-dollar fortunes. Their stories highlight the power of investing in businesses with durable competitive advantages and the discipline of long-term ownership rather than frequent trading.
Amazon, beyond its e-commerce dominance, is expanding into streaming and artificial intelligence, positioning it as a promising investment for the future. Altria Group has paid and increased its dividend continuously for 50 years. An initial investment of around $10,000 in The Home Depot in 1981, adjusted for stock splits, would be worth approximately $318 million today. Amazon, a tech company, had its initial public offering in 1997. An initial investment of around $10,000 in Amazon's stock since its IPO in 1997 would be worth approximately $18 million today.
It's worth noting that Altria Group operates in the tobacco industry, and the number of tobacco consumers worldwide has decreased by around 19 million in the last two years, according to the WHO. However, Altria Group's unique business model involves raising prices without significant revenue losses. The company, which has a WKN of 200417, is considered one of the three companies mentioned that operate in relatively crisis-resistant industries.
Altria Group's dividend yield is approximately 9.5 percent, making it an attractive option for income-focused investors. The company has a large customer base and operates with a strategy that allows it to maintain profits despite industry challenges.
These companies' success stories serve as a reminder of the potential rewards of long-term investing in robust, countercyclical businesses. As always, it's essential to conduct thorough research and consider individual investment goals and risk tolerance before making any investment decisions.
[1] MarketWatch. (2021, March 18). Home Depot stock: Here's why it's a good buy right now. Retrieved from https://www.marketwatch.com/story/home-depot-stock-heres-why-its-a-good-buy-right-now-11615808536
[3] CNBC. (2021, February 23). These are the 10 most profitable retailers in the U.S. Retrieved from https://www.cnbc.com/2021/02/23/these-are-the-10-most-profitable-retailers-in-the-us.html
[5] Yahoo Finance. (2021, April 2). Amazon's stock price forecast for the next 10 years. Retrieved from https://finance.yahoo.com/news/amazons-stock-price-forecast-next-10-years-155600558.html
Investing in Home Depot (HD), Amazon (AMZN), and Altria (MO) has proven to be a successful strategy for patient investors who held through market cycles and reinvested dividends, evidenced by the substantial wealth these companies have generated over several decades. These companies' stories underscore the importance of long-term investing in businesses with durable competitive advantages, as seen in the impressive growth of Home Depot and Amazon, and the consistent dividends paid by Altria.
