
4 Reasons I Own Amazon And So Should You
Posted On March 11, 2019 9:31 am
By: Dividend Sensei
By: Dividend Sensei
Even dividend investors should own some growth stocks, and here are four reasons Amazon is definitely one of them.
Summary
- While 96% of my retirement portfolio is dividend growth stocks, I do own one non-dividend payer, Amazon.
- That’s because I consider this company to be a way to tap into some of the biggest secular economic trends of the future.
- Amazon continues to grow like a weed, both its top and bottom line.
- The company’s wide moats in most of its market segments, courtesy of its multi-platform and sticky ecosystem business model, makes the company about 26% undervalued today.
- Even assuming much slower future growth and significant multiple compression, Amazon should be capable of delivering 10% to 20% total returns over the coming five years, crushing the S&P 500.
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