This ‘Forever Asset’ Yields 5.3%

The firm gushes cash flow. Right now, investors are collecting a total shareholder yield of over five percent. And I’m not the only one who likes this stock. Former Microsoft Corporation (NASDAQ:MSFT) chief executive officer Bill Gates is a major investor. A number of billionaires–including Jim Simons, Steve Cohen, and Ken Griffin–have also quietly built positions. Let me explain. As regular readers are aware, I’m a big fan of a group of companies I like to call my “Forever Assets.” Forever Assets are wonderful businesses that have stood the test of time. These companies exploit their entrenched market position to earn outsized cash flows. Many of these firms have paid out dividends to shareholders for decades.

You only need to take a quick glance at a stock price chart to see just how lucrative these investments can be. Longtime shareholders have been collecting dividends not just for years or decades, but for generations. Case in point: Canadian National Railway Company, or CNI stock for you ticker hounds. If you’ve ever traveled across the Midwest, you may have seen a CN train barreling across the plains. The company owns 20,000 route miles of track across Canada and the central United States. Businesses rely on CN for shipping everything from oil and grain to cars and lumber. But while you may have never heard of it, the company meets my criteria of a Forever Asset for a couple of reasons. (Source: “CN Investor Presentation,” Canadian National Railway Company, January 2017.)

Source: Income Investors

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