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26.25% Annual Return With Lobbying Stocks? Here is how it works...

I found an interesting portfolio investing idea: Invest into stocks that spend a huge amount of money to support political campaigns’. 

It's no wonder that corporations have a huge interest in spending money for politics: Each dollar should create a return of 220 bucks in the future. That's a pretty good investment in my view.

I'm no social guy and have no thoughts in my mind how governments work but stocks that have spend huge amounts for lobbying as a percent of total assets, have performed very well in the past. 

Stocks that lobby Washington beat the street by shocking 11 percent yearly!

Since 2009 a compilation of lobbing stocks generated an annual return of 26.25 percent while the Sharpe Ratio of the combined portfolio reached a high value of 0.88.

Look at my attached stock list. Hope you get some new ideas. I still introduce many investing ideas and dividend growing stocks on my blog. 

Here are the top stocks that spend a large amount on lobbying as a percent of total assets:

#1 Southern Company (NYSE:SO) has a market capitalization of $41.97 billion. The company employs 26,300 people, generates revenue of $17.087 billion and has a net income of $1.710 billion.

Southern Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,733.00 million. The EBITDA margin is 39.40 percent (the operating margin is 19.05 percent and the net profit margin 10.01 percent).

Financials: The total debt represents 36.09 percent of Southern Company’s assets and the total debt in relation to the equity amounts to 115.67 percent. Due to the financial situation, a return on equity of 8.81 percent was realized by Southern Company.

Twelve trailing months earnings per share reached a value of $2.34. Last fiscal year, Southern Company paid $2.01 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.97, the P/S ratio is 2.46 and the P/B ratio is finally 2.18. The dividend yield amounts to 4.50 percent and the beta ratio has a value of 0.18.


Long-Term Stock Price Chart Of Southern Company (SO)
Long-Term Dividend Payment History of Southern Company (SO)
Long-Term Dividend Yield History of Southern Company (SO)

Lockheed Martin (NYSE:LMT) has a market capitalization of $58.95 billion. The company employs 115,000 people, generates revenue of $45,358.00 million and has a net income of $2,950.00 million.

Lockheed Martin’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,212.00 million. The EBITDA margin is 13.70 percent (the operating margin is 9.93 percent and the net profit margin 6.50 percent).

Financials: The total debt represents 17.00 percent of Lockheed Martin’s assets and the total debt in relation to the equity amounts to 125.09 percent. Due to the financial situation, a return on equity of 119.02 percent was realized by Lockheed Martin.

Twelve trailing months earnings per share reached a value of $9.89. Last fiscal year, Lockheed Martin paid $4.78 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.88, the P/S ratio is 1.30 and the P/B ratio is finally 12.10. The dividend yield amounts to 3.22 percent and the beta ratio has a value of 0.63.


Long-Term Stock Price Chart Of Lockheed Martin (LMT)
Long-Term Dividend Payment History of Lockheed Martin (LMT)
Long-Term Dividend Yield History of Lockheed Martin (LMT)

Kindred Healthcare (NYSE:KND) has a market capitalization of $1.29 billion. The company employs 40,000 people, generates revenue of $4,900.51 million and has a net income of $-44.81 million.

Kindred Healthcare’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $306.24 million. The EBITDA margin is 6.25 percent (the operating margin is 0.91 percent and the net profit margin -0.91 percent).

Financials: The total debt represents 40.23 percent of Kindred Healthcare’s assets and the total debt in relation to the equity amounts to 146.64 percent. Due to the financial situation, a return on equity of -4.14 percent was realized by Kindred Healthcare.

Twelve trailing months earnings per share reached a value of $-1.04. Last fiscal year, Kindred Healthcare paid $0.24 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, the P/S ratio is 0.26 and the P/B ratio is finally 1.00. The dividend yield amounts to 2.41 percent and the beta ratio has a value of 2.23.


Long-Term Stock Price Chart Of Kindred Healthcare (KND)
Long-Term Dividend Payment History of Kindred Healthcare (KND)
Long-Term Dividend Yield History of Kindred Healthcare (KND)

HealthSouth (NYSE:HLS) has a market capitalization of $3.38 billion. The company employs 13,900 people, generates revenue of $2,247.20 million and has a net income of $382.50 million.

HealthSouth’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $559.40 million. The EBITDA margin is 24.89 percent (the operating margin is 21.36 percent and the net profit margin 17.02 percent).

Financials: The total debt represents 59.88 percent of HealthSouth’s assets and the total debt in relation to the equity amounts to 346.62 percent. Due to the financial situation, a return on equity of 73.03 percent was realized by HealthSouth.

Twelve trailing months earnings per share reached a value of $1.52. Last fiscal year, HealthSouth paid $0.36 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 25.34, the P/S ratio is 1.50 and the P/B ratio is finally 9.83. The dividend yield amounts to 2.18 percent and the beta ratio has a value of 1.72.


Long-Term Stock Price Chart Of HealthSouth (HLS)
Long-Term Dividend Payment History of HealthSouth (HLS)
Long-Term Dividend Yield History of HealthSouth (HLS)

ITC Holdings Corporation (NYSE:ITC) has a market capitalization of $5.92 billion. The company employs 539 people, generates revenue of $941.27 million and has a net income of $233.51 million.

ITC Holdings Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $614.66 million. The EBITDA margin is 65.30 percent (the operating margin is 52.70 percent and the net profit margin 24.81 percent).

Financials: The total debt represents 57.50 percent of ITC Holdings Corporation’s assets and the total debt in relation to the equity amounts to 223.84 percent. Due to the financial situation, a return on equity of 15.28 percent was realized by ITC Holdings Corporation.

Twelve trailing months earnings per share reached a value of $1.74. Last fiscal year, ITC Holdings Corporation paid $0.54 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.79, the P/S ratio is 6.29 and the P/B ratio is finally 3.71. The dividend yield amounts to 1.71 percent and the beta ratio has a value of 0.21.

Long-Term Stock Price Chart Of ITC Holdings Corporation (ITC)
Long-Term Dividend Payment History of ITC Holdings Corporation (ITC)
Long-Term Dividend Yield History of ITC Holdings Corporation (ITC)

Chemed (NYSE:CHE) has a market capitalization of $1.82 billion. The company employs 13,952 people, generates revenue of $1,413.33 million and has a net income of $77.23 million.

Chemed’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $199.61 million. The EBITDA margin is 14.12 percent (the operating margin is 9.44 percent and the net profit margin 5.46 percent).

Financials: The total debt represents 20.54 percent of Chemed’s assets and the total debt in relation to the equity amounts to 40.89 percent. Due to the financial situation, a return on equity of 17.12 percent was realized by Chemed.

Twelve trailing months earnings per share reached a value of $5.16. Last fiscal year, Chemed paid $0.76 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.70, the P/S ratio is 1.29 and the P/B ratio is finally 4.19. The dividend yield amounts to 0.82 percent and the beta ratio has a value of 0.78.


Long-Term Stock Price Chart Of Chemed (CHE)
Long-Term Dividend Payment History of Chemed (CHE)
Long-Term Dividend Yield History of Chemed (CHE)

FedEx (NYSE:FDX) has a market capitalization of $48.59 billion. The company employs 112,000 people, generates revenue of $45,567.00 million and has a net income of $2,097.00 million.

FedEx’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,069.00 million. The EBITDA margin is 13.32 percent (the operating margin is 7.56 percent and the net profit margin 4.60 percent).

Financials: The total debt represents 14.32 percent of FedEx’s assets and the total debt in relation to the equity amounts to 31.01 percent. Due to the financial situation, a return on equity of 12.81 percent was realized by FedEx.

Twelve trailing months earnings per share reached a value of $7.35. Last fiscal year, FedEx paid $0.60 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.35, the P/S ratio is 1.07 and the P/B ratio is finally 3.57. The dividend yield amounts to 0.47 percent and the beta ratio has a value of 1.25.


Long-Term Stock Price Chart Of FedEx (FDX)
Long-Term Dividend Payment History of FedEx (FDX)
Long-Term Dividend Yield History of FedEx (FDX)

Textron (NYSE:TXT) has a market capitalization of $11.52 billion. The company employs 32,000 people, generates revenue of $12,104.00 million and has a net income of $498.00 million.

Textron’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,208.00 million. The EBITDA margin is 9.98 percent (the operating margin is 7.00 percent and the net profit margin 4.11 percent).

Financials: The total debt represents 24.62 percent of Textron’s assets and the total debt in relation to the equity amounts to 72.70 percent. Due to the financial situation, a return on equity of 13.51 percent was realized by Textron.

Twelve trailing months earnings per share reached a value of $1.99. Last fiscal year, Textron paid $0.10 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.95, the P/S ratio is 0.95 and the P/B ratio is finally 2.69. The dividend yield amounts to 0.19 percent and the beta ratio has a value of 1.75.


Long-Term Stock Price Chart Of Textron (TXT)
Long-Term Dividend Payment History of Textron (TXT)
Long-Term Dividend Yield History of Textron (TXT)

9 Dividend Paying Lobbying Stocks (Click to enlarge)
Source: long-term-investments.blogspot.com