Sneak Peek: A Strong Dividend Pick From the Crow's Nest Portfolio

Today we're bringing you a look at one of Jimmy Mengel's dividend picks for the readers of The Crow's Nest. Today we're bringing you a look at one of Jimmy Mengel's dividend picks for the readers of The Crow's Nest. Read on for an excerpt from The Crow's Nest and one of 27 companies on his list of the most reliable and lucrative sources of income for retirees today. [Outsider Club logo] Sneak Peek: A Strong Dividend Pick From the Crow's Nest Portfolio [Adam English Photo] By [Adam English]( Written Dec. 25, 2019 Today we're bringing you a look at one of Jimmy Mengel's dividend picks for the readers of The Crow's Nest. Jimmy's open portfolio is up a whopping 51%, with companies like this one forming a stable and profitable core. Read on for an excerpt from The Crow's Nest and the ticker symbol of one of [27 companies on his list of the most reliable and lucrative sources of income for retirees today](. Take care, Adam English Editor, Outsider Club --------------------------------------------------------------- --------------------------------------------------------------- [crows nest logo] Ahoy Crow's Nesters, The market has been unpredictable lately… and I’m sure more twists and turns lie ahead. Even if we do see a correction or crash, let’s keep things in perspective: • October 28, 1929: The “great crash” knocked Wall Street down 12.82% and jumpstarted the Great Depression. • October 19, 1987: The Black Monday crash dropped stocks by 22%. • September 17, 2001: The Dow fell 885 points and continued to fall, losing over 4% within a week. • September 29, 2008: The housing bubble burst and sent us into the latest recession. The Dow fell 777.68 points. These things happen. But if you play your cards right, you’ll always come out ahead. Here’s how things worked after each crash: • 1987: The Dow closed 1987 at 1,939, gaining back all of the loss and ending the year up by 2%. • 2001: The Dow closed the year at 10,021, a 21% rebound in less than three months. • 2008: From the March 9th lows to the end of 2009, the S&P 500 soared 64.83%, the Nasdaq gained 78.87%, and the Dow gained 59.28%. And it’s important to remember that things could always be worse. Much worse... I’ve been reading a historical book about the Donner Party. It’s called The Best Land Under Heaven: The Donner Party in the Age of Manifest Destiny by Michael Wallis. It tells the tale of the ill-fated Donner Party’s harrowing expedition from Independence, Missouri, to the Sierra Nevada mountains in California, where many members of the group met a grisly end. Spoiler alert: They had to survive by eating people. Had they been properly prepared and educated about their trip, many more would have made it out alive. There are a few takeaways from the experiences of the Donner Party that investors can apply to our current situation… Know Your Route The Donner Party knew that they wanted to start a new life in California. But they decided to take a shortcut, called the Hastings Cutoff, which was developed by a huckster named Langston W. Hastings. Hastings had also written the “authoritative” guidebook for westbound travelers, called The Emigrants’ Guide to Oregon and California. They were told that the Hastings Cutoff would shave several days off their trip. They had two options: They could stick to the “old road,” which meant staying on the Oregon Trail all the way up into present-day Idaho, then dropping down to follow the Humboldt River across present-day Nevada, and then — finally — crossing the rugged Sierra Nevada and descending into California. Or they could avoid the long, tedious detour north of the Great Salt Lake by taking a shortcut that had just been discovered the previous year but that no train of covered wagons had ever before attempted. This new route left the Oregon Trail just west of the Continental Divide, not far from an isolated trading post called Fort Bridger. From there it ran straight west through the Wasatch Mountains, skirted the south end of the Great Salt Lake, crossed the Great Salt Lake Desert and the Ruby Mountains, and finally came to the Humboldt River, where it rejoined the main California Trail for the rest of the way. The new route was called Hastings’ Cutoff... [oregon trail oc sneak peek] On paper, the cutoff promised to save 350, maybe 400 miles — an almost irresistible prospect for bone-weary overlanders only halfway through their journey and with more than 1,000 miles still to go. When spring came, Hastings headed out onto the Oregon Trail to persuade as many people as possible to take his route. His machinations were that summer would make Hastings’ Cutoff perhaps the most notorious trail ever carved through the American wilderness. Along their journey, the party was warned that the Hastings Cutoff was incredibly dangerous and untested. Many travelers were apprehensive of the less traveled shortcut. James Reed, one of the founding members of the party, was so enthralled by Hastings’ pitch that he decided to go full speed through the Hastings Cutoff. Sadly, he also ended up convincing most of the wagon party to join him. It would prove to be the worst decision of his life, and it cost many people their lives. You can guess what happened next... The travelers who took the tried-and-true Oregon to California trail eventually made it to their destination and started exciting new lives that were filled with prosperity and fulfillment. The Donner-Reed Party ended up freezing to death in 60-foot snowdrifts and eventually resorted to eating members of their party. The key to this is when someone offers you a shortcut that sounds too good to be true, it likely is. And not to be too dramatic, but I do believe that investing wisely really is a life-and-death decision. The moves you make now will eventually end up rewarding you or haunting you down the line. Like the old frog in boiling water fable, you usually don’t know you’re in danger until you’re already cooked. And that leads us right into the next point… Timing Is Very Important What are you seeking to accomplish, and when do you plan to arrive? Can you take your time and amble away, enjoying the scenery? Do you have the time to keep loading up on supplies? Or are you on a mad dash to retirement? The Donner Party was doomed from their lack of timing. For one, they left too late. The ideal time to leave would have been around mid- to late-April. But the Donner Party didn’t leave Independence, Missouri, until May 12th. They were the last major wagon train of 1846, and their late start helped doom them. They’d also spent too much time resting, gathering supplies, and generally holding themselves up. They then waited too long to cross the snowy mountains. Many of the members had been either too old or too young and had to rest their understandably weary bones. Sometimes, like in the idyllic Alcove Spring where they’d stopped to rest and even carved their initials into the rocks, they just lingered too long in comfort and beauty when they should have kept moving. “I am beginning to feel alarmed at the tardiness of our movements,” one member wrote, “and fearful that winter will find us in the snowy mountains of California.” Each of these decisions cost them in the end. In the dead of winter, they found themselves in the grips of epic snowstorms that just kept coming. Most of the wagon crew thought it wise to bunker down for the winter and wait out the horrific snowstorms that were to follow. Lucky for us, we’re only dealing with the stock market going down a little bit. If you panic and freeze up every time the market takes a dive, you’ll likely end up falling far short of your retirement goals. If you stick to the route, time your investments right, and don’t sit around idly when things seem scary, you’ll be just fine in the end. Today I’m going to give you an example of the kind of stock that'll let you weather any stock market storm, and save you from cannibalizing your portfolio. Illinois Tool Works Inc. (NYSE: ITW) I shouldn’t have to explain the importance of tools to you. When a wagon breaks down, you’ll need tools to fix the broken axles. When a felled tree is blocking your path, you’ll need a saw and an ax to remove it. When you need to create a makeshift cabin to hole up in for the winter, you’ll need carpentry tools like hammers, nails, mallets, and planes. Tools aren’t going away. And there’s one company that’s been there almost since pioneer times to meet those crucial needs… Illinois Tool Works Inc. (NYSE: ITW). Illinois Tool Works manufactures and sells industrial products and equipment worldwide. It operates through seven segments: Automotive OEM, Food equipment, Test & measurement and electronics, Welding, Polymers and fluids, Construction products, and Specialty products. ITW was founded in 1912 by Byron L. Smith. Smith put out an ad in the Economist, looking to provide capital to a “high class business (manufacturing preferred) in or near Chicago.” He turned down several initial offers, waiting for the right proposal. And when a group of inventors with an idea to improve gear grinding came along, ITW was born. It’s now one of the best-performing dividend stocks of the last century. It’s flourished through wars and recessions and has expanded its businesses around the world. The company is not only a dividend aristocrat; it’s also a dividend king. This means that it’s had over 50 years of consecutive dividend increases. Had you invested, here’s how you’d have done with ITW over the past 20 years: [itw 20 year growth] That’s an astounding 540% return, turning $10,000 into $64,100. If you’d put it into a DRIP (Dividend Reinvestment Plan), which is my recommendation with solid dividend plays like this, you’d be up 736% and holding almost $83,650 on that $10,000 buy in. Here are some more details on this dividend king: • In 2011, ITW had more than 20,000 unexpired patents and pending patent applications worldwide, including 2,900 U.S. patents and 1,116 pending U.S. applications. The company typically ranks in the top 100 of patent issuers in the U.S. • It’s ranked 521 on the Forbes Global 2,000. • It sports a solid dividend of 2.39% and a five-year dividend growth rate of 17.1%. The Crow's Nest readers were clued into Illinois Tool Works Inc. (NYSE: ITW) when it was trading at $153.86 last year. We're now up just under 20%. ITW is above our $165 per share "buy under" price, but it is just one of 27 companies on my list of the most reliable and lucrative sources of income for retirees today. [To get a look at the rest, click here](. Godspeed, [jimmy-mengel-signature-transparent] Jimmy Mengel Investment Director, The Crow's Nest Enjoy reading this article? [Click here]( to like it and receive similar articles to read! Browse Our Archives [The Best Buying Opportunity You’re Going to See for a While]( [The Benefit of Private Placement Warrants]( [Jesus, Babe Ruth, and the Future of Energy]( [Want to Start 2020 in the Black? Here’s How]( [The Army Takes On China]( --------------------------------------------------------------- This email was sent to {EMAIL}. It is not our intention to send email to anyone who doesn't want it. If you're not sure why you've received this e-letter, or no longer wish to receive it, you may [unsubscribe here](, and view our privacy policy and information on how to manage your subscription. To ensure that you receive future issues of Outsider Club, please add newsletter@outsiderclub.com to your address book or whitelist within your spam settings. For customer service questions or issues, please contact us for assistance. [Outsider Club](, Copyright © 2019, [Angel Publishing LLC]( & Outsider Club LLC, 111 Market Place #720, Baltimore, MD 21202. For Customer Service, please call (877) 303-4529. All rights reserved. [View our privacy policy here.]( No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. Angel Publishing and Outsider Club does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. This letter is not intended to meet your specific individual investment needs and it is not tailored to your personal financial situation. Nothing contained herein constitutes, is intended, or deemed to be – either implied or otherwise – investment advice. Neither the publisher nor the editors are registered investment advisors. This letter reflects the personal views and opinions of Nick Hodge and that is all it purports to be. While the information herein is believed to be accurate and reliable it is not guaranteed or implied to be so. Neither Nick Hodge, nor anyone else, accepts any responsibility, or assumes any liability, whatsoever, for any direct, indirect or consequential loss arising from the use of the information in this letter. The information contained herein is subject to change without notice, may become outdated and may not be updated. Nick Hodge, entities that he controls, family, friends, employees, associates, and others may have positions in securities mentioned, or discussed, in this letter. No part of this letter/article may be reproduced, copied, emailed, faxed, or distributed (in any form) without the express written permission of Nick Hodge or the Outsider Club. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law.