Philip Morris International Inc. (PM), Diageo plc (ADR) (DEO), L Brands Inc (LTD): Sinful Stocks for a Secure Portfolio

Less is more

I wanted to get a little creative with this last pick so I choose L Brands Inc (NYSE:LTD) , owner of one of my favorite companies Victoria’s Secret, whom I’m sure we all are familiar. Surprising, researchers have found that demand for lingerie and women’s underwear remains relatively stable during times of economic turbulence.

In theme with the previous two companies, L Brands Inc (NYSE:LTD) sports a strong yield of 2.4%. This number is actually significantly higher if you factor in the $7 in special dividends payed to shareholders over the last few years. The company is primed for an Asia expansion and has outlined a strategic plan to slowly enter the region.

Here in North America, the company is working to establish its “Pink” brand into a separate freestanding brand. Pink, if your not familiar, is the company’s line targeted at younger consumers. By pulling younger consumers into to the broader Victoria’s Secret line, the company is creating lifelong relationships with women.

In Europe, the company has been welcome with open arms. The flagship London store has outperformed every expectation since its launch last year. Management has made it clear there are many possibilities they plan to explore throughout Asia in the years ahead.

At this time, the company is slowly integrating its brand and I believe consumers will respond well when the company goes full scale. If I were management, I would place a flagship store in the Macau district of China. A luxury lingerie store would fit well with the variety of other luxury American Brands while the company would benefit from exceptionally high sales per square foot.

Conclusion

Consider an investment in sinful stocks as these companies tend to offer investors consistent and growing dividends, global growth potential, and fortified earnings during times of economic turbulence.

The article Sinful Stocks for a Secure Portfolio originally appeared on Fool.com.

Nathaniel is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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