New Thousand Oaks The Habit Burger Grill Continues This Burger Chain's Success Story

/

The Habit Burger Grill originated on November 15, 1969 at 5735 Hollister Ave, Goleta - a location that is still in operation to this day. The Habit is a fast casual restaurant concept that specializes in preparing fresh, made-to-order char-grilled burgers and sandwiches featuring USDA choice tri-tip steak, grilled chicken and sushi-grade albacore tuna cooked over an open flame. 

The chain was purchased by a private equity firm in 2007 and subsequently The Habit Restaurants, Inc. went public with an initial stock offering on November 19, 2014, 45 years after its inception.

The new location coming soon to Thousand Oaks. Ever wonder why the "b" in Habit is slightly twisted? I asked. The Habit indicates it "makes it special and light hearted."

The new location coming soon to Thousand Oaks. Ever wonder why the "b" in Habit is slightly twisted? I asked. The Habit indicates it "makes it special and light hearted."

A new location is coming to Thousand Oaks at the former Famous Dave's BBQ location at 3980 Thousand Oaks Blvd. This will mark the 4th Conejo Valley Habit Burger location, including existing locations in Thousand Oaks, Newbury Park and Agoura Hills. Additional Ventura County locations in Simi Valley (2), Camarillo, Oxnard and Ventura (2).

The Habit trades under stock symbol HABT and currently is (as of December 20, 2016) at $17.30 per share, down 4% from its initial public offering price of $18 per share. That said, its price soared to close at nearly $40 per share that first day of trading, making it a bit of a terrible investment for those that bought after the IPO.

Stock price aside, The Habit has been quite a success story, growing to 160 restaurants in 10 states and opening new restaurants at the rate of over 30 per year. Total revenue for The Habit's fiscal year 2016 is anticipated to be in the $283 million range.

Photo courtesy of The Habit Burger. While my Habit Burger doesn't look quite this perfect, that's no big deal. It usually reaches my mouth before my eyes have much time to admire it.

Photo courtesy of The Habit Burger. While my Habit Burger doesn't look quite this perfect, that's no big deal. It usually reaches my mouth before my eyes have much time to admire it.

But back to stock price. For a growth stock like The Habit, timing can be critical. Let's look at an example. Over the last two years ending today, had you purchased $100 in McDonald's stock (MCD), the value of that investment today would be $131, and you would have received cash dividends of close to $8, for a total return of 39%. $100 invested in HABT would now be worth about $52. 

So while The Habit Burger may have been rated #1 burger in a 2014 Consumer Reports survey (and I for thoroughly enjoy the burgers and other menu items at The Habit), you don't necessarily always want to put your money where you mouth is. Or your mouth where your money is, for that matter.

To learn more about The Habit, visit www.habitburger.com.

High Dividend-Yielding Stocks Can Reap Solid Returns for Cautious Investors

/

In April 2010 and March 2009 I highlighted some stocks that pay decent dividends, as an alternative to low yielding bank CDs and bonds. The market was up a nice 40% from March 2009 to April 2009. Throw in a 4 to 5% dividend and you were looking pretty good!

From April 2010 to today (December 2011), the market was fairly flat overall. While the Dow Jones Industrials were up 5.5%, the broader S&P 500 index was flat. Given the volatility of the market with the European debt crisis, ongoing U. S. economy concerns and other current events, investing in the stock market can make you sick to your stomach. But other low-risk investments like bank CDs yield practically nothing.

As an alternative, check out some of these high-yielding stocks. While there were a couple duds, overall these stocks were up nearly 6% over the last 18 months, beating the S&P 500. Plus, they paid investors between 4 and 5% in cold, hard cash! Here's an update.

  • Altria (Symbol: MO) Stock was $21 in April 2010 and is $29 today ($17 in March 2009). With a current yield of 5.6%, why not profit on someone else's vice (hopefully not yours...lung cancer will cost you plenty long-term).
  • BP plc (BP) BP was one of only 2 duds in this line-up but only because of the Gulf oil spill in May 2010. It is at $40 today, down from $60 in April 2010 (t
Read More

An Update on High Dividend Paying Stocks

/

Thirteen months ago I highlighted some stocks that pay decent dividends, as an alternative to low yielding bank CDs and bonds. Since then, the market has made a nice comeback, up over 40% overall.  A monkey could have made money in this market by throwing banana slices at ticker symbols on CNBC.

The good news is that the 19 stocks highlighted grew by nearly 40%, even before taking into account the 5% to 6% dividends paid out during the period!

While I can't predict where the stock market is headed (seems like it should be taking a breather at some point, but who knows...), let's take a fresh look at these stocks!

  • Altria (Symbol: MO) A year ago at $17 it yielded 7.9%. Today at $21 it yields 6.6%. Still worth a look profiting off smokers of the world!
  • BP plc (BP) Yielded 8.8% at $38 a year ago but today it stands at $60 and at that price yields 5.7%. I suppose this is worth buying for the yield. Heck, fixed rate mortgages are still less than that.
  • Aflac (AFL) At $15 it yielded 7.5%. But holy smokes! Stock is now $57 and yields just 2% at that price! I'd hold my shares purchased at lower prices but would hesitate buying more at this point.
  • Eli Lilly (LLY) Lilly is now at $37 and yields 5.3%, slightly less compelling than the 6.5% yield at $31 a year ago but seems safe.
  • GlaxoSmithKline (GSK) Yielded 6.8% at $29 last year but today yields 5.8% at $39. I'd consider
Read More

Where Do I Invest Money When Interest Rates are So Low?

/

My mother is retired and is doing her best to live off of her retirement savings and Social Security payments.  She prefers to invest in conservative CDs and bonds as she doesn't have a lot of money and doesn't want to risk losing money.  However, the rates are so low today she is wondering what to do.  CDs are earning a measly 1.5% to 2.5% depending on duration.  Corporate bonds aren't much better.

The April 2009 issue of Kiplinger's Finance has some good alternatives for those willing to put some money in stocks that pay decent dividends.  While investing in stocks certainly has downside exposure as we've all experienced recently, if you are investing for the long haul, consider some of the following:

  • Altria (Symbol: MO) at its current price of $17 generates a 7.9% yield (I don't like smoking but I don't mind profiting from those who do).
  • BP plc (BP) at $38 has an 8.8% yield! Nice!
  • Aflac (AFL) at $15 has a yield of 7.5% (though the stock price has been completely hammered down 80% over the past year...not for the faint of heart)
  • Eli Lilly (LLY) at $31 has a yield of 6.5%
  • GlaxoSmithKline (GSK) at $29 yields 6.8%
  • Nicor (GAS) at $29 has a yield of 6.4%
  • Merck (MRK) at $27 (was $24 yesterday) yields 6.3%
  • H.J. Heinz (HNZ) at $33 yields 5.1% - ketchup on some nice dividends!
  • Kraft Foods (KFT) at $23 yields 5.2%
  • Coca-Cola (KO) at $41 yields 4%

Other stocks that I like for their dividends and what I believe to be are solid future prospects are:

  • AT&T (T) at $24 a share yields 6.7%
  • Verizon (VZ) $28 yields 6.8%
  • Southern Co. (SO) at its current low point of $27 yields 6.3%
  • Johnson & Johnson (JNJ) today is at $51 and yields 3.8%
  • Kimberly-Clark (KMB) of Kleenex, Huggies and Depends fame at $46 yields 5.3%
  • Microsoft (MSFT) at its current low price of $17/share yields 3.1%
  • Bristol-Myers Squibb (BMY) at its current $21 price yields 6%
  • Even Procter & Gamble (PG) at $47 is now yielding 3.5%
  • I also like the iShares Investment Grade Corporate Bond ETF (LQD) which invests in high yielding corporate bonds and currently yields 5.8%

These yields look good now but things can change...both dividend payments and stock prices can drop (case in point...GE and all the financial stocks).  But stock prices have already dropped so much that I'm willing to take my chances on many of these.