By Early to Rise<\/p>\n
Need more income? Join the crowd.<\/p>\n
Scads of folks are scouring the landscape for decent income investments to beef up their monthly take home \u2013 especially now, with gas and other everyday items skyrocketing.<\/p>\n
Thing is, with Bernanke & Co. printing money like there\u2019s no tomorrow, the returns on bonds, CDs, and money market funds are almost nonexistent.<\/p>\n
Instead, many people have turned to making big bets on growth stocks.<\/p>\n
But let\u2019s face it. Betting all your marbles on the next \u201chot stock\u201d can be dangerous\u2026 especially in the current landscape.<\/p>\n
By itself, one crazy out-of-your-control market plunge can lay waste to the best laid plans \u2013 and your retirement. And it won\u2019t matter how good your picks are\u2026 or how much homework you\u2019ve done.<\/p>\n
But here\u2019s the thing. You can get cold, hard cash on a monthly or quarterly basis \u2013 significant amounts of cash \u2013 simply by investing in companies with solid finances and strong management teams\u2026 companies that firmly believe they should reward loyal investors with steady and substantial dividends.<\/p>\n
Fact is, if dividend-paying stocks aren\u2019t a major part of your portfolio, the odds of having success in the markets are stacked against you. History reveals that investors who hold great stocks and reinvest the dividends can count on outperforming every major investment sector \u2013 including gold, silver, T-bills, or bonds \u2013 by a wide margin.<\/p>\n
Nothing else even comes close. And there\u2019s no reason to believe that will change any time soon. Want more proof? Dr. Jeremy Siegel, known as the Wizard of Wharton, conducted an exhaustive study of stock market returns from 1871 through 2003. In his study, he showed that over a 135-year period, owning stocks and reinvesting the dividends produced 97% of all stock market returns, while a miserly 3% came from capital gains.<\/p>\n \u201cCash In\u201d On the World\u2019s Most Powerful Long-Term Trends <\/strong><\/p>\n Since May of 2010, a small group of wealth builders have been privy to a very special type of investment recommendation\u2026<\/p>\n The wunderkind heading up this portfolio is looking for the Big Ones \u2013 long-term trends that will snowball over time into massive returns.<\/p>\n He\u2019s aiming for trends like oil in the 1970s\u2026 30-year government bonds in the 1980s\u2026 and the Internet in the 1990s.<\/p>\n So far, 70% of his picks are winners. And his open portfolio is already showing an average gain of nearly 20%.<\/p>\n Get in now, and you stand to see the biggest possible gains.<\/p>\n Learn the details here<\/strong><\/a>.<\/p><\/blockquote>\n<\/div>\n Let me repeat that. Dividend-paying stocks account for nearly all the returns investors gained in the history of the U.S. stock market.<\/p>\n Furthermore, by reinvesting the dividends<\/em><\/strong> \u2013 a key factor \u2013 stocks clocked in with a 6.8% annual rate of return for the last 200 years. That means the purchasing power of dividend stocks has doubled, on average, every 10 years over the past two centuries.<\/p>\n But there\u2019s more\u2026<\/p>\n In addition to a nice steady stream of cash, dividends provide another advantage in market downturns. When you reinvest your dividends while the stock is cheaper, you automatically add to the number of shares you own\u2026 and your subsequent checks get much bigger down the road.<\/p>\n It\u2019s no secret \u2013 a company\u2019s dividends play a major role in its performance. Yet many investors completely ignore this important fact.<\/p>\n But you can\u2019t buy just any dividend stock. History shows you must focus on the cr\u00e8me de la cr\u00e8me, the companies that are consistently growing their dividends<\/strong><\/em>.<\/p>\n Ned Davis Research compared the returns of all the stocks in the S&P 500 from 1972 to 2004 based on the companies\u2019 dividend-paying policy. The study showed that companies that consistently grew their dividends returned 10.6% per year, more than double the returns of companies that cut or eliminated them.<\/p>\n This is even more important if you\u2019re about to retire. Dividend growers provide consistent income and protection against market losses. That beats the heck out of cashing in your stocks to generate income every time the market tanks.<\/p>\n The fact is, if you\u2019re not getting paid cash on your investments you\u2019re probably losing out. And there\u2019s absolutely no reason for that\u2026 you can have your cake and eat it too.<\/p>\n We\u2019ve put together a special report that focuses on five stocks with operations all over the globe that have high and secure dividends\u2026 that yield significantly more than their historical average. These companies have such dominant business franchises that they generate exceptional cash flows.<\/p>\n Best of all, each of them has made a commitment to share that cash flow with their shareholders through high \u2013 and ever-growing \u2013 dividend payments.<\/p>\n Of course, every investment carries some risk. But all of the companies in our report have a stellar performance record of delivering growing dividends over decades<\/strong><\/em>. Even in the worst years for the stock market, they\u2019ve paid out big cash dividends to their investors like clockwork.<\/p>\n These stocks put you in control\u2026 You decide how many checks to receive and when.<\/p>\n So while you\u2019re sitting through this gyrating, up-and-down market, why not make 10%\u2026 18%\u2026 or even 20% on your money?<\/p>\n To gain full access to this special report, sign up for the Liberty Street Investor<\/em> here<\/a><\/strong>. By Early to Rise Need more income? Join the crowd. Scads of folks are scouring the landscape for decent income investments to beef up their monthly take home \u2013 especially now, with gas and other everyday items skyrocketing. Thing is, with Bernanke & Co. printing money like there\u2019s no tomorrow, the returns on bonds, CDs, … <\/p>\n
\nIn Triumph of the Optimists: 101 Years of Global Investment Returns (2002)<\/a><\/em>, the authors looked at stock returns from capital gains and dividends from 1900 to 2000. They found that a portfolio with dividends reinvested would have generated nearly 85 times the wealth of the same portfolio relying solely on capital gains.<\/p>\n
\nThis article appears courtesy of Early To Rise<\/a>, a free newsletter dedicated to creating wealth<\/a> and success<\/a> through inspiration and practical, proven advice. For a complimentary subscription, visit http:\/\/www.earlytorise.com.<\/p>\n","protected":false},"excerpt":{"rendered":"