26.25% Annual Return With Lobbying Stocks? Here Is How It Works

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Nov 21, 2014

I found an interesting portfolio investing idea: Invest in 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 spent huge amounts for lobbying as a percentage of total assets have performed very well in the past.

Stocks that lobby Washington beat the Street by a 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 linked 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 percentage 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. - See more at: 26.25% Annual Return With Lobbying Stocks? Here Is How It Works...