J#6: Our next recommendation yields double digits
and is on track to become a double bagger
We are in the midst of completing our second Free Special Report for you. It exhibits all the attributes of my shophouse investment that I wrote about in my last journal entry, J#5.
If you recall, that investment took all of 30 minutes to analyse, and turned out to be a triple bagger.
Our second free Special Report recommendation has one of the largest mines in the world for a metal you very rarely hear about, yet it’s the fourth most used metal by tonnage (after iron, aluminium and copper).
It has a superb balance sheet, it is a well-run company, it supplies a commodity that is not replaceable and has healthy operating margins.
These are the same hallmarks of my shophouse investment. With the exception of a 6-month period, my shophouse was rented continuously over a 15-year period. It has had only three happy tenants. The fact that it has never been vacant for long periods shows the quality of the location, the uniqueness of the building’s design, its high demand by renters, and that it is a well-run and maintained property.
The shophouse has yielded 9.50% per annum. The rental income over 10 years alone has paid for the purchase price and the renovations including a new 4-story rear building. Property prices since 2004, the year we bought the shophouse, have nearly tripled. This is a tidy capital gain and important source of wealth.
I see similar possibilities with our next Double Digit Dividends recommendation. It pays a rich dividend over 10% per annum. The dividend payments alone should pay for the investment within 10 years, leaving all the future dividends and the resale price as profits.
An increase in its production capacity should also see the company’s price appreciate. So I am expecting this investment to be a double bagger. I’ll share all the reasons in my report to you.
In summary, like my shophouse investment, these are the attributes we seek in all the investments we make at Double Digit Dividends:
- Companies which give out generous dividends. Double-digits is our benchmark.
- They must have a history of rewarding shareholders with continuous double-digit dividend payments.
- Businesses that have a superb balance sheet (meaning little net debt), healthy operating margins, and which are well run.
- The potential to be, at least, a double bagger.
Our investments do take some time to find. They are, as our website states, “investment gems.”
I have been accumulating shares in our second recommendation for over 12 months. I am a big fan of this investment and my holding is sizeable. Our Double Digit Dividends mandate requires that no single holding shall exceed 20% of the portfolio’s Net Asset Value (inclusive of cash balances). This company gets, and deserves, all of the 20% allocation.
We shall be delivering our Free Special Report to our members on Tuesday, 21st July. You can register for an account at https://double-digit-dividends.com/register/
Finally, a message for my children’s consumption – it pays to be unique, and most times, it requires perseverance, patience and creativity. Become that gem!
Photos of their mining operations are provided below.
