An American first stock

As we all know by now, Trump’s No 1 presidency slogan is “American First” by encouraging American companies to invest more directly in the US than outsourcing. One major approach he is promoting is to create a “border tax” that will tax those products manufactured in foreign countries but sold in the US. If this is indeed implemented, companies with major international business will certainly be impacted and potentially in a major way. It is probably difficult these days to find out pure companies that are not outsourcing in their business. Putting politics aside and regardless if you like or not, as an investor, preparing for the potential impact won’t be wrong and hurt you. If you can find stocks that are only or largely doing business in the US, logically they should not be affected much, if any by the border tax. If somehow this tax is not implemented at all, then there should also just be business as usual for them. Finding such a stock is not easy and it is more difficult to find one that has proven itself to be thriving almost in all business environments it has gone through.  And even better, it is a great dividend aristocrat that will pay you very well for long term! I have found one that happens to have already treated me extremely well over a long haul but it is a “dirty and sin” stock that not necessarily everyone will like. I’m talking about a smoke stock, Altria (MO).

 

I have started to own MO since 2008 when it got crashed with all the other stocks. I have talked about the rationale why I like it so much a few years ago and you can find it here. No need to repeat myself as nothing has changed why it will continue to be a great dividend stock. But it happens also to be a pure US only company. It used to have international business as well but it has spun off the international business years ago, through which I luckily have also got a free stock, Philips Morris (PM), another extremely performing well stock that is paying me increasing dividends non-stop for years. Back to MO, honestly it is not really cheap but you probably won’t get a great chance to buy it cheaply unless the overall market gets another serious crash like in 2008. After it reached all time high at $75 a few months ago, MO has been in a small correction mode at the moment. I don’t know if it will happen but if it indeed goes below $70 in the weeks ahead, I think it will be another good opportunity to get some shares of MO as it will be relatively cheap and fits well with the American First theme. I suggest you add MO into your watch list and don’t miss the opportunity when it comes!