Buying tobacco stocks 30 years ago would beat buying Apple at the same time by 31.5%

by missedthecue

 

With $100,000 investments performed on the same date. Dividends not reinvested. Math below.

Phillip Morris

4,045 shares at a cost of $24.72 per share on a $100,000 investment.

Stock split, 4 for 1. 10/10/1989. You now have 16,180 shares.

Stock split 3 for 1. 4/10/1997. You now have 48,450 shares.

MO pays out $50.29 dividends per share for a total of $2,436,550.50

MO current price $48.85. A total of $2,366,782.50 worth of MO stock.

03/28/2008, Altria (renamed in 2003) Spins off Philip Morris International. You receive 48,450 shares of PM stock

PM pays out $36.61 a share in dividends for a total of $1,773,754.50

PM current price $83.46. A total of $4,043,637

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3/30/2007, Altria spins off Kraft foods. You receive 33,528 shares of KRFT.

KRFT pays out $5.80 per share in dividends for a total of $194,462.40

Kraft Foods Group merged with Heinz. Your 33,528 shares now trade under ticker KHC.

KHC pays out $14.28 per share in dividends for a total of $478,779.84

KHC current price 47.63. A total of $1,596,938.64 of KHC stock.

10/1/2012 Kraft Spins off Mondelez. You now own 100,584 shares of MDLZ

MDLZ pays out $4.65 in dividends for a total of $467,715.60

MDLZ current price is $47.76 for a total of $4,803,891.84

Total return on investment? $18,162,512.82


AAPL

$100,000 would buy a split-adjusted 74,626 shares. At 170.5 current price $12,723,733 with total of $1,066,405.54 in dividends = $13,790,138.54

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