The Dividend Machine

Edited by Bill Spetrino A Publication of Newsmax Finance

®

Achieve Financial Freedom With Secure Income And A Total Return Strategy
Vol. 11, Issue 1 / January 2019

Getting Rich Starts With

This One Simple Trick
“Bill, I’m afraid to put my money in the market that it was undervalued . . . no matter what other
right now.” investors thought at that moment.
That was the opening line in an email I received Legendary value investor Benjamin Graham
just before Thanksgiving from Jim, a subscriber, said it this way: “In the short run, the market
in a week that saw the major stock indices slide is a voting machine. But in the long run, it is
into negative territory for 2018. Panic was building a weighing machine.” In other words, strong
among investors as they watched companies with solid balance
the Dow fall below 25,000 and the sheets, compelling brands, and
Nasdaq tumble under the 7,000 “We’re bombarded sustainable revenues and profits
level, the latter led down by tech will win out over a temporary lack
titans like Apple (AAPL), Alphabet
with the wrong of investor confidence.
(GOOGL), Facebook (FB), and messages about That’s how I’ve made a fortune
Amazon (AMZN). money. Frankly, it’s on Altria (MO), Philip Morris
Of course, I’ve heard that many (PM), Herbalife (HLF), and Apple,
times before, especially from those why so many people among other positions where I
new to investing. Our natural struggle financially.” took big stakes.
instinct says it’s crazy to take our But, back to that email from Jim.
money and pour it into assets that Once I dug deeper, I discovered
are losing value. We prefer to acquire things that that this particular subscriber wasn’t worried only
become instantly more valuable the minute we about the market slide. Compounding his concern
buy them. was this: outside of participating in a 401(k), he
I get it. But I also know, after decades in this had never put a dime into a stock before. He often
business, that it’s a fantasy — and it isn’t how didn’t have much left over at the end of the month
markets function. My road to decamillionaire after all the bills were paid. “Was buying stocks just
status hasn’t been a straight-up journey. Instead, an irresponsible gamble?” he wondered.
there have been dips and struggles along the way, It’s at moments like these that I realize retelling
and the only thing that saw me through was good my own personal success story isn’t always enough
old-fashioned patience. to help others overcome their worries when first
That patience was helped greatly by understanding dipping a toe into the market. At that point, it’s
the real value of the stock I was buying, recognizing not just about the typical fear that comes with
stock investing. It’s more of a fundamental change household running. That’s important, of course —
in thinking, a re-evaluation of a person’s whole I wouldn’t tell you to stop doing so. Yet, one reason
perspective on their relationship to money. why 65 percent of Americans aren’t saving much
is because, by the time they pay off everything else,
Your No. 1 Priority there’s nothing left.
What do I mean? Throughout our lives, we’re They’ve done their part to help others get rich:
bombarded with the wrong messages about money. the people who own banks, power companies,
Frankly, it’s the reason so many people struggle insurance agencies, grocery stores. Actually,
financially. they’ve made lining the pockets of others a
It’s why we see stunning statistics about priority, at the expense of their own financial
the sorry state of savings. A recent study from well-being.
Bankrate.com found that 65 percent of Americans If your bills exceed your income, that’s a major
save 10 percent or less of their annual income, problem you must tackle, obviously. But beyond
with 19 percent saving absolutely nothing. that, one of the most important steps you can
And labeling such people as “lazy” is off-base. take toward financial freedom is re-ordering
The reality is, many of them are dutifully paying your priorities.
bills and expenses, just like Jim. They’re current Here’s the “simple trick” I referred to in the title
on their mortgage, their car payment, their to this month’s issue: Every time you get paid,
insurance premiums, their electric bill. They’re make sure you take a portion right off the top
productive members of society. However, they and use it to buy assets. Each and every time you
are making one common, critical mistake that is get paid, you want to keep part of it for yourself
destroying their ability to live comfortably and be first, before anyone else gets a slice.
able to look forward to a well-funded retirement. And for me, deciding where to put that
They are not paying themselves first. savings is a no-brainer. If you put it in a savings
Think about what happens when you receive a or money market account earning 2 percent or
paycheck. Where does the money go? What actions less, considering the inflation rate is just under 3
are you taking? If you’re like many, you’re paying percent, you’re guaranteed to lose.
the bills and covering the expenses to keep your However, by buying an asset such as a stock,
I’m getting something that can beat inflation
Bill Spetrino is a professional investor
over time, and in our case, usually pay a regular
who has earned millions for himself and his dividend, too.
investors solely through strategic investing. A stock represents the ultimate in passive
A trained accountant, he graduated from income. You’re buying a portion of a company
John Carroll University in Ohio and spent where the leadership and employees are working
a decade teaching. A lifelong entrepreneur on your behalf, without you having to lift a finger.
as well, Spetrino set out to understand and As I’ve said in this newsletter before, the more
codify a simple dividend investing strategy passive income you have, the less active income you
for life, an idea that eventually led to the need, and the more you can call your own shots in
creation of The Dividend Machine. He wrote about his path life and do what you want to do, instead of what
in his book, The Great American Dividend Machine, covering you have to do to survive.
how to pick the kinds of stocks Warren Buffett or the late Sir That’s what I want to see for subscribers like Jim
John Templeton would recommend, long-term cash generators
and the thousands out there just like him who are
with handsome appreciation as well. His dividend picks now
hesitant about taking the plunge into investing.
generate all of his family’s living expenses and more, and they
As I told Jim, and I’ll tell anyone else who
keep on growing. He consults with a worldwide base of clients
on investing and tax planning from his home in Ohio.
listens: Take some of each paycheck right of the top
and put it in the markets. For my part, I’ll continue

2 DividendMachine.com January 2019

to give my advice on exactly where to put that cash weightings. As we go to press, that list includes
to work here in The Dividend Machine. Altria, Philip Morris, Applied Materials (AMAT),
As for my “buy at or under” prices, I’m very and Lam Research (LRCX), among others.
particular about where I set those. I cannot predict And this month, I also want to share a new
the exact bottom for a stock — no one can, and if stock that’s on my radar, one that I’d like to add to
they claim otherwise they are lying. What I can do our Aggressive Portfolio. Founded in 1980, Thor
is figure out what a fair value for a stock is, based Industries (THO) is in the business of designing,
on company metrics and future growth, and then manufacturing, and selling recreational vehicles
pinpoint a price where we can be confident that we (RVs), both towable and those you drive.
will make money over the long haul. The Elkhart, Indiana-based company owns a
number of RV brand names, including Airstream,
Don’t Follow the Herd Bison, CrossRoads, Cruiser RV, Dutchmen, Jayco,
When I talk about dividend investing, I know and Starcraft, among numerous others.
I tend to make it sound easy. It’s actually not easy THO has had quite a downward slide over the
to pick the stocks, but my job is to do that heavy past year, peaking at $161.48 on Jan. 24, 2018, while
lifting for you — to make this whole process as hitting its 52-week low of $63.48 on Oct. 29. It
simple and free of worry as I can. bounced to the mid-$70s by early November, only
Still, though, I realize there are still so many to fall again with the overall market. As I write this,
people out there with the same fears as Jim, who it’s around $64.
never get over it and don’t end up putting any of That kind of major tumble got my attention,
their savings into stocks. Part of it is just due to especially considering the type of business it
the scare tactics of the media. When markets have is in. Of course, economic factors can impact a
down days, the headlines are all doom and gloom. consumer cyclical business like RVs, since people
And when they have up days, we see a lot of doom will be less inclined to spend money on one when
and gloom, too, that it can’t last and a crash is times are tough.
coming. (The bottom line is, doom and gloom Yet, through this past year, we’ve had plenty of
sells, unfortunately.)
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good news economically, including
CHART 1: U.S. GDP Growth Rate, 2016-2018
record low unemployment, high
5
consumer confidence figures, and
GDP growth rates breaking past 3 4 4.2
percent in the latter half of 2018
3.5
(see Chart 1). The middle class still 3
3.0
2.8
could use some further economic 2.3 2.3
2 2.2
gains, yes, but there has been 1.9 1.8 1.8
nothing in the past year that would 1
1.5
0.4
indicate a company like Thor
should see its stock slide 60 percent 0
1/16 7/16 1/17 7/17 1/18 7/18
from peak to trough. The U.S. GDP growth rate has seen an impressive surge in 2018, reflecting
Well, there has been one thing strength in the economy — the type of strength that fuels large discretionary
that has hurt it — the trade war. purchases like RVs.
Tariffs on steel and aluminum SOURCE: TradingEconomics.com, U.S. Bureau of Economic Analysis

made for more expensive

building materials, denting Thor’s CHART 2: Thor Industries (THOR) Stock Price, 2016-2018
profitability. And it came at a bad $160

time, just as the RV business was

enjoying a resurgence in popularity. $140
According to the Recreation
Vehicle Industry Association, U.S. $120
RV shipments were up 17 percent $67.29
from 2016 to 2017, and Thor’s sales
saw a 58 percent increase in that $100

same timeframe.
So, Wall Street has punished $80
Thor, and now the stock trades at a
trailing 12-month price-to-earnings $60
ratio of 8.27. As a reminder, P/E is 1/17 3/17 5/17 7/17 9/17 11/17 1/18 3/18 5/18 7/18 9/18 11/18

a calculation of current share price After hitting a 52-week high of $161.48 in January of 2018, RV manufacturer Thor
Industries fell all the way to around $67 by late November, a victim of uncertainties
divided by earnings per share. A surrounding the ongoing trade dispute and imposed tariffs on steel and aluminum.
sub-10 P/E represents a great value, However, the underlying business is still strong, creating a disconnect between the
especially in a stock market where price and true value of THO shares.
the S&P 500’s P/E is 21. SOURCE: Yahoo Finance

Fundamentally, Thor is on solid

ground. The management has grown earnings brands and a strong balance sheet, along with
per share 29.87 percent annually over the past five a dividend yield of 2.32 percent, makes THO a
years. At a market cap of $3.5 billion, the company compelling stock. What really puts it over the top
only carries $6 million in debt, against $275 for us, however, is the catalyst to come.
million in cash. It has over $5 per share in net That is, the trade war is not a permanent fixture.
cash. They’re managing money conservatively and It will be resolved, and when a deal with China
not getting overleveraged, giving them flexibility is struck, the uncertainty will cease — and Thor
to do well through any recessionary times that should benefit greatly when that happens, both in
may come. business and investor-sentiment terms. I can’t say
An American company with a range of resonant it’ll move back to the $160s, but it does have a lot

4 DividendMachine.com January 2019

of upside from where the stock is
CHART 3: VanEck Vectors Semiconductor ETF (SMH) Price, 2016-2018
currently mired.
I do view this as an Aggressive $120

rather than Conservative holding. It

fundamentally checks some boxes $110

that I look for in Conservative

Portfolio candidates, but the $100

uncertainty surrounding just when

the trade pacts will be negotiated $90

and finalized, along with the fact $90.74

$80
that the RV industry will move up
and down with overall economic
$70
cycles, increases the risk just enough
to push it to our Aggressive ledger. $60
I’m recommending Thor 1/17 3/17 5/17 7/17 9/17 11/17 1/18 3/18 5/18 7/18 9/18 11/18
Industries (THO) at or under The semiconductor industry had a rough year. On March 13, the VanEck Vectors
$76 per share, representing a 4 Semiconductor ETF reached its 52-week high of $114.55, then rose and fell in fits
and starts through the spring and summer before hitting a 52-week low on Oct. 29
percent weighting. at $86.95, representing a 24 percent swing from that recent top to bottom.
SOURCE: Yahoo Finance

Portfolio Update:
Our Semiconductor Holdings volatility as the sector slid 7.88 percent in 2018
A lot of you have rightfully asked me over the through mid-November. (See Chart 3.)
past month or so: What the heck is going on with In Dividend Machine, of course, we are weighted
semiconductor stocks? heavily in chipmakers, including Qualcomm
Just when it seemed the sector was finding (QCOM) and the aforementioned Applied
a bottom in October and November, Nov. 16 Materials and Lam Research in the Conservative
brought another harsh slide. The culprit this time Portfolio, and NXP Semiconductors (NXPI)
around was weak forecasts from Applied Materials on the Aggressive side. While we caught Lam
(AMAT) and NVIDIA Corporation (NVDA). nearer its bottom, the other three have all been
Nvidia was hit especially hard on that Friday, problematic in their own way.
plummeting 18 percent as it missed analyst Qualcomm, of course, has been up and down
expectations on third-quarter revenue, while this year — China trade tensions essentially ended a
projecting revenue in the fourth quarter that takeover bid by Broadcom (AVGO), and later also
was below Wall Street consensus estimates. nixed Qualcomm’s proposed acquisition of NXP
Cryptocurrency miners stopped buying graphics Semiconductors. Its stock saw a temporary boost
cards and created a big inventory backlog. Looking with a $21 billion buyback, but has been losing steam
ahead, gaming was likely going to be a particular since early October, not helped by its fourth-quarter
problem in the upcoming quarter, according to the earnings report, which revealed a revenue drop to
Santa Clara, California-based firm. $5.80 billion from $5.91 billion in the prior fourth
Other chipmakers also issued warnings quarter. Litigation expenses related to its ongoing
about future revenue pressure, including Texas court battle with Apple (AAPL) and the $2 billion
Instruments (TXN) and Advanced Micro deal-termination fee with NXP didn’t help matters.
Devices (AMD). NXP, meanwhile, was hard hit with the end of
All in all, semiconductors have been in a swoon the Qualcomm deal in July, and has yet to recover,
— a look at the VanEck Vectors Semiconductor even though the $25-billion-market-cap Dutch
ETF (SMH) over the past year shows plenty of company, which made $9.2 billion in revenue in

January 2019 NewsmaxFinance.com 5

2017, has shown strength after missing on earnings
estimates in the first two quarters of 2018. Analysts Upcoming Dividend Dates
really like its prospects, with NXP considered the Below are the stocks that will pay dividends in January and
February 2019. The ex-dividend date is the date by which
leading semiconductor supplier in automotive and you must own the stock in order to receive the dividend.
digital networking.
Ex-Dividend Dividend
As for Applied Materials, it released quarterly Stock Symbol Date Payment Date
earnings on Nov. 15, hitting expectations for the AbbVie ABBV 1/14/19 2/15/19
fiscal fourth quarter. Net income was $876 million, Comcast CMCSA 12/31/18 1/23/19
or 89 cents per share, down from $982 million and
91 cents per share in the fourth quarter of 2017. It’s
adjusted earnings per share, however, was 97 cents, would have compromised Trump’s negotiating
directly aligned with Wall Street expectations. position. Now, China has no reason to wait any
Revenue in the quarter increased from $3.99 billion longer to get serious, especially since a trade deal
in the fourth quarter of 2017 to $4.01 billion in this could help its ailing economy, which is suffering
latest quarter, just ahead of the $4.00 billion estimate. through its slowest rate of GDP growth since 2009.
However, forward expectations are low — The Shanghai Stock Exchange Composite Index is
analysts were hoping for $3.94 billion in revenue down about 20 percent year to date.
for the fiscal first quarter of 2019, with earnings of When it comes to a trade deal, I’m cautiously
92 cents per share. The company adjusted its own optimistic. It will happen, but it’s hard to predict
projections to a range of $3.56 billion to $3.86 timing at this point.
billion, and 75 cents to 83 cents per share. In the interim, as the situation continues
I realize that I’ve just shared a lot of tough news without resolution, it will affect overall investor
about an industry we’ve made a significant bet on. sentiment and be a drag on the semiconductor
As I’ve mentioned before, I’m personally invested industry performance.
right there with you, with more than a million However, I don’t see it as a long-term problem
dollars in Applied Materials alone. that will adversely impact the fundamentals of
So, when it comes to semiconductors, has my our companies — they are still industry leaders
conviction wavered? The answer is no. creating products serving a rapidly growing
Where I have been wrong is our entry point, technological need in the world. Short-term traders
especially in NXPI and AMAT. We were too early should fret, but I still see strong prospects for
on both, as I underestimated two things. First, I capital gains in the next two to three years.
did not expect China to be as belligerent in its As for the cyclical slowdown, it probably will
negotiation stance with the U.S. over trade. make 2019 a little tougher than I initially expected.
And second, I did not think the cyclical Still, I’m hearing from my experts in the
slowdown for semiconductors would be as deep as semiconductor field that, despite some public
some analysts and companies are now projecting warnings from analysts to the contrary, this
Global economic conditions may indeed reduce slowdown shouldn’t actually be as severe as
corporate spending on computing equipment in investors seem to be expecting based on the selloff.
2019. Those worries are being reflected in the lower The leadership at Applied Materials backed
guidance we’ve been seeing in this latest round of that assessment in their earnings conference call,
quarterly earnings. as reported by MarketWatch. “While we’re not
But let’s talk about that U.S./China trade ready to call the bottom of the current cycle, we
negotiations. It makes sense that progress can are optimistic that we’re not going to see the same
come faster now that the congressional midterms kind of volatility we saw in the past as an industry
are over. Chinese officials were waiting just in case
Democrats won the Senate and House, which Continued on page 8

6 DividendMachine.com January 2019

 January 2019 Dividend Machine Portfolios
CONSERVATIVE PORTFOLIO — 90% OF HOLDINGS
Entry Entry Recent Buy at Current Total
Recommendation Symbol Weight Date Price Price or under Yield Return
Altria MO 10% 5/1/09 $16.37 $54.40 $60.50 5.96% 439.69%

Philip Morris Intl. PM 8% 5/27/09 $41.65 $85.43 $91.00 5.43% 215.22%

Visa, Inc. V 4% 2/23/11 $18.38 $138.64 $70.00 0.75% 713.39%

Apple AAPL 18% 6/26/12 $67.51 $176.69 $158.00 1.51% 251.10%

AbbVie ABBV 2% 1/2/13 $32.50 $90.55 $56.00 5.00% 165.38%

Qualcomm QCOM 12% 5/27/14 $68.91 $57.73 $72.00 4.49% -6.86%

eBay EBAY 2% 12/26/14 $24.00 $29.26 $27.00 0.00% 21.75%

Micron Technology MU 3% 5/22/15 $21.78 $36.88 $31.00 0.00% 73.33%

PayPal Holdings PYPL 2% 7/20/15 $33.00 $84.19 $44.00 0.00% 153.17%

American Express Corp. AXP 4% 5/24/16 $63.79 $107.64 $73.00 1.48% 70.76%

Delta Air Lines, Inc. DAL 4% 9/26/16 $38.52 $56.94 $42.00 2.45% 53.98%

Gilead Sciences GILD 5% 8/16/10 $55.94 $69.55 $82.00 3.27% 28.80%

NY Community Bancorp, Inc. NYCB 8% 7/28/17 $11.86 $10.23 $11.75 7.22% -9.43%

Comcast Corporation CMCSA 4% 6/13/18 $31.60 $37.69 $34.00 1.97% 19.31%

Applied Materials AMAT 10% 8/8/18 $43.78 $35.43 $52.00 2.28% -24.92%

Lam Research LRCX 4% 10/10/18 $141.20 $149.69 $160.00 3.01% 6.01%

AGGRESSIVE PORTFOLIO — 10% OF HOLDINGS

Entry Entry Recent Buy at Current Total
Recommendation Symbol Weight Date Price Price or under Yield Return
Herbalife HLF 16% 3/21/13 $20.17 $56.46 $33.75 0.00% 176.27%

Insperity NSP 2% 4/25/14 $16.00 $98.06 $45.00 0.83% 567.34%

F5 Networks FFIV 2% 1/28/16 $92.50 $169.55 $109.00 0.00% 83.30%

United Therapeutics UTHR 2% 3/24/16 $117.90 $113.29 $129.00 0.00% -3.91%

Alaska Air Group, Inc. ALK 2% 8/25/16 $67.72 $70.03 $68.00 1.84% 5.91%

Yum China Holdings, Inc. YUMC 1% 11/1/16 $10.15 $35.62 $16.00 1.36% 240.88%

Ligand Pharmaceuticals LGND 2% 2/24/17 $98.00 $152.77 $105.00 0.00% 55.91%

American Eagle Outfitters, Inc. AEO 2.5% 5/1/17 $13.96 $19.89 $14.00 2.81% 43.98%

Urban Outfitters, Inc. URBN 2% 5/30/17 $19.01 $37.50 $24.25 0.00% 97.26%

Snap Inc. SNAP 15% 8/25/17 $12.69 $6.23 $15.50 0.00% -50.91%

The Cheesecake Factory CAKE 2% 9/28/17 $41.93 $46.68 $44.00 2.63% 12.06%

Foot Locker, Inc. FL 2% 10/27/17 $32.49 $54.93 $39.00 2.71% 71.47%

Hawaiian Holdings HA 2% 2/26/18 $37.35 $38.01 $39.00 1.34% 2.27%

Newell Brands NWL 8% 3/27/18 $22.33 $23.54 $28.00 4.23% 6.84%

Michael Kors Holdings Ltd. KORS 10% 12/22/14 $55.98 $42.43 $59.00 0.00% -24.21%

NXP Semiconductors NXPI 6% 7/2/18 $98.65 $81.82 $107.00 1.18% -17.06%

L Brands, Inc. LB 8% 9/12/18 $28.00 $33.02 $28.00 4.00% 19.36%

NEW Thor Industries THO 4% — — $64.31 $76.00 2.32% —

As of close December 4, 2018. The weighting percentages listed are what Bill Spetrino recommends as far as your allocation of your total investment in each position. The total
weighting will not exceed 100% within each portfolio, although it may sometimes be under 100%, indicating a holding in cash. The total return calculation reflects the change in
price, as well as reinvested dividends. Your results may vary, depending on your own weighting decisions and whether you choose to reinvest dividends.

January 2019 NewsmaxFinance.com 7

Continued from page 6 driving down the price and making it a value in
the first place. Look back on all our successes over
or as a company,” said Applied Materials’ CFO Dan the years, and you’ll see a who’s who of stocks that
Durn. He pointed to the “large market for PCs and were driven down to ridiculously low levels by
mobile devices, plus the emergence of a big wave of unwarranted panic.
new demand drivers related to AI and big data.” We’ve won in banking, healthcare, tobacco,
The semiconductor industry isn’t going away. retail, and yes, technology, among others. There’s
We are still on the early cusp of the technological no reason to think those aforementioned
revolution that’s transforming the globe, and firms semiconductor stocks won’t one day be that same
like AMAT, LRCX, and NXPI are leading the way. sort of success story for us.
Qualcomm is, too, but that company comes
with a caveat; I still believe a leadership change Actions to Take
is in order there, and if we don’t see some drastic Action No. 1: Buy Thor Industries (THO) at or
improvements out of that team in the coming under $76 per share, representing a weighting of 4
months, I may be inclined to sell that stock — percent of the Aggressive Portfolio.
although I do not see any reason at all why we Action No. 2: Do you have questions regarding
should take a loss in it, either. The 4.49 percent your subscription? You can reach our customer
dividend is a valuable incentive in the meantime. service team by email at customerservice@
newsmax.com or by calling (888) 766-7542.
Bright Days Ahead
In closing, I’d like to reiterate one key thing Sincerely,
about Dividend Machine: We follow a value-based
investment strategy. That means we’re usually
buying companies when overall sentiment is
terrible, and people hate or fear the stock (and
associated industry). Bill Spetrino
But it’s all that short-term negativity that’s Editor, The Dividend Machine

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investment decisions. The Dividend Machine does not give personalized investment, tax, legal, or other business advice. We suggest that you consult with your financial adviser or other financial professionals
before making any investment. The information in this publication is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy, sell, or trade in any
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Little-Known Disruption in
U.S. Drinking Habits Impacting
Millions of Americans!
Worries about the health impact of sugary soda and the
dangers of contaminated tap water have sent consumers
scurrying for beverages that are both healthy and safe…
By Lee Bellinger consumer tastes has created a unique opportunity
Editor of Off-Grid Confidential for investors to profit.
The disruption of the U.S. beverage industry For more than 30 years, I’ve been the publisher
began with soaring demand for healthier beverages of a leading investment newsletter that has helped
from consumers looking to break their unhealthy investors spot major trends well in advance time
addiction to sugary soda. and time again. And it’s clear that America is
And that disruption and demand have only moving on from sugary beverages — and making
grown stronger thanks to America’s tap water healthier choices.
crisis. It has become apparent that water systems The Alkaline Water Company [NASDAQ:
across America are failing — and that some cities WTER] is out in front of this megatrend and
routinely deliver water contaminated with lead and could help early investors turn a modest $2,500
other toxins. investment into $27,500 or more, as I believe its
The result: a booming bottled water market that shares are now grossly undervalued.
includes a surprising new and fast-growing segment Big Soda is Investing
called “enhanced” water.
Billions in this Trend
That is bottled water featuring added minerals,
vitamins, nutrients or flavorings. Sales of sugary soda have been steadily declining
for more than a decade. According to Fortune
Sales of healthier water offerings are growing magazine, since 2004, “carbonated soft drinks have
by 26.4% a year, making it the fastest growing shed 1.6 billion cases in volume.”
segment of the bottled water market.
In order to keep up with this shift in consumer
One of the leading enhanced water brands is tastes, big soda companies have been scrambling
Alkaline88® from The Alkaline Water Company to gain a foothold by investing billions of dollars to
[NASDAQ: WTER]. It has rapidly become one of grab market share. For example...
the nation’s best-selling enhanced waters — with
sales projected to reach $40 million in FY 2019. • Dr. Pepper Snapple Group bought beverage
company Bai Brands for $1.7 billion, paying
Unprecedented Growth in about 7.4 times revenue.
a Highly Competitive Market • In August 2018, Coca Cola acquired a minority
Over the last four years, sales of Alkaline88® stake in sports drink company BodyArmor,
have soared more than 435%. handing basketball star Kobe Bryant a 3,200%
return. The transaction valued Bryant’s 10%
That type of growth is almost unprecedented in a stake in the company (for which he paid $6
market as highly competative as bottled water, with million) at a staggering $200 million.
nearly 200 different brands.
• Coca Cola also paid $4.2 billion — or 11.7
The combination of this brand’s rapid growth
with “Big Soda’s” swift reaction to changing (Continued on next page)
 times revenue — to acquire Vitaminwater. to market soon.
This frenzy of acquisition activity could be a The tastes of the American consumer are
catalyst for sending shares of The Alkaline Water changing — and “Big Soda” is spending billions to
Company sharply higher. The company’s fast- grab or retain market share in the enhanced water
growing brand — Alkaline88®, valuable trademark business. I believe The Alkaline Water Company
and state-of-the-art technology make it an attractive [NASDAQ: WTER] is well-positioned for
target for a “Big Soda” buyout. growth in this space and could make an extremely
And, the company is becoming even more attractive attractive acquisition target.
as it introduces new products that are at the leading
edge of the next huge trend...
Investor Alert: The Alkaline Water Company
[NASDAQ: WTER] Is Now a “Strong Buy”
CBD-Infused Beverages Are Taking
I’ve conducted in-depth research on this
North America By Storm!
company and have personally visited with the
Much like alkaline water, CBD — a non- company’s management.
psychoactive compound — has been shown to have My findings — along with my 30 years of
a wide range of health benefits. experience helping investors profit from major
Studies have suggested that CBD can be used as trends — have led me to issue a “Strong Buy” alert
an effective treatment for chronic pain, Alzheimer’s to my Off-Grid Confidential newsletter subscribers.
disease, liver, lung and breast cancer tumors, It is my opinion that this potentially fast-moving
diabetes and Crohn’s disease. scenario could help turn every $2,500 invested into
$27,500.
Combining CBD with alkaline water creates
a product virtually guaranteed to have strong To help explain how this scenario could unfold
appeal to health-conscious consumers — and that’s in the months ahead, I’ve prepared a Special Report
precisely what The Alkaline Water Company called Tap Water Woes, Enhanced Water Profits.
[NASDAQ: WTER] has plans to do. You’ll receive a FREE copy when you accept a risk-
free trial subscription to my Off-Grid Confidential
The timing for the company’s introduction of a newsletter. Plus, you’ll receive seven additional
line of CBD-infused water is perfect, coming in the FREE reports designed to help you protect your
early stages of the newest megatrend. family and grow your wealth in 2019 and beyond.
Just recently — in September 2018 — shares of Off-Grid Confidential is the one newsletter you
New Age Beverages Corp. (NBEV) soared 45% in can rely on to tell you what’s really going on in the
a matter of hours after the company announced that world — and how to prepare for whatever comes
it had tested an infused beverage in Colorado. geopolitically and with the economy. In addition
In addition, Coca Cola is now looking at to receiving important megatrend alerts, you’ll
introducing CBD-infused wellness drinks, with also receive breaking news and buy, hold and sell
reports suggesting the company has been in talks updates about The Alkaline Water Company
with a potential partner to help develop these new [NASDAQ: WTER].
products. To subscribe to Off-Grid Confidential now, and
In the midst of this emerging trend, The to claim your eight FREE Special Reports valued
Alkaline Water Company [NASDAQ: WTER] at $176, call Toll-Free 1-877-371-1807 or visit
has announced the launch of its new A88 Infused www.TheWaterInvestor.com.
Beverage Division, which will bring new products Offer Code: LNDM01118
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