Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) is a conglomerate of listed and unlisted businesses and is the second-oldest listed company in Australia, having been born in 1872. While it has well and truly proven its resilience to market gyrations by now, there are a number of other reasons why the stock presents as such an appealing buy today.
Here are three of those reasons.
- Washington H. Soul Pattinson, or Soul Patts, runs its business in a very similar way as Warren Buffett runs Berkshire Hathaway. Although the industries the two conglomerates invest in are quite different, both invest in quality, well-run companies with their sights set on the ultra-long term.
- Two of its largest shareholdings are in Brickworks Limited (ASX: BKW) and New Hope Corporation Limited (ASX: NHC). Although New Hope is currently acting as a drag on Soul Patts' earnings as the coal price continues to plummet, both companies are well placed to benefit in the long-term as Australia's and the globe's population soar.
- Soul Patts has annihilated the S&P/ASX 200 Index's (Index: ^AXJO) (ASX: XJO) return over the last 10 years and should continue to do the same over the coming decades. In addition, it is forecast to distribute 49 cents per share as a dividend in 2015, putting it on a fully franked yield of 3.3%.
Another solid dividend stock that could make you RICH!
Soul Patts has earned a spot in my portfolio and I believe it will serve me extremely well over the coming decades. But there is another stock I am also strongly considering taking up a position in…
