{"id":55513,"date":"2014-08-05T21:12:46","date_gmt":"2014-08-06T01:12:46","guid":{"rendered":"http:\/\/countingpips.com\/?p=55513"},"modified":"2014-08-05T21:12:46","modified_gmt":"2014-08-06T01:12:46","slug":"how-you-can-legally-raid-the-cash-boxes-of-the-stock-market","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/08\/how-you-can-legally-raid-the-cash-boxes-of-the-stock-market\/","title":{"rendered":"How You Can Legally Raid the Cash Boxes of the Stock Market"},"content":{"rendered":"
August 5, 2014<\/div>
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By MoneyMorning.com.au<\/u><\/a><\/p>\n

Yesterday I revealed my three top tips for small-cap investing success<\/a>.<\/p>\n

These three simple principles guide my decision on whether to recommend a speculative investment.<\/p>\n

If you consider and apply that advice, you’ll set yourself up to boost your win rate in small-cap shares<\/a>.<\/p>\n

Today I want to let you in on a fourth secret. It’s a simple characteristic shared by successful emerging companies.<\/p>\n

And it’s all about the need for companies to attract dividend-hungry investors.<\/p>

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You see, shareholders are a fickle bunch. Often it’s not enough for a company to reward them with share price appreciation. They want to get their hands on the company’s profits in cash. That means many investors gravitate towards stocks that pay dividends<\/a>.<\/p>\n

That’s true in markets around the world. But it’s especially true in Australia. Dividends typically bring investors here a bonus tax credit.<\/p>\n

I’m sure you know why investors have been swinging this way. Lower central bank interest rates mean lower savings and term deposit interest rates.<\/p>\n

That has forced investors to take bigger risks to maintain the same income level.<\/p>\n

That means you should keep your eye out for stocks that can grow and<\/em> pay rising dividends. If you spot them before the rest of the market cottons on, you’ve most likely found a golden opportunity.<\/p>\n

Only one area of the market can meet investor demand for big growth and<\/em> tasty dividends – small-cap stocks.<\/p>\n

Companies that fit this bill are rare. I call them ‘Turbo Caps’.<\/p>\n

These are the profitable, or soon-to-be profitable small-cap stocks that are about to pay or increase their dividend.<\/p>\n

So, how can you identify a ‘Turbo Cap’ stock? I look for three key indicators:<\/p>\n