{"id":21654,"date":"2011-06-14T11:12:32","date_gmt":"2011-06-14T15:12:32","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=21654"},"modified":"2011-06-14T11:12:32","modified_gmt":"2011-06-14T15:12:32","slug":"the-8-rules-i-use-to-earn-112-77-in-dividends-per-day","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/06\/14\/the-8-rules-i-use-to-earn-112-77-in-dividends-per-day\/","title":{"rendered":"The 8 Rules I Use to Earn $112.77 in Dividends Per Day"},"content":{"rendered":"

Article by DividendOpportunities.com<\/a><\/span><\/strong><\/p>\n

The \t\t\t\t8 Rules I Use to Earn $112.77 in Dividends Per Day<\/strong><\/span><\/p>\n

Note<\/em>: The following is a guest article \t\t\t\t\tfrom Dividend Opportunities<\/em> co-founder Paul Tracy.<\/span><\/p>\n

I counted twice, just to be sure…<\/p>\n

$41,161.63<\/strong>.<\/p>\n

That’s the amount in “daily paychecks” — more commonly \t\t\t\t\tknown as dividends — I received from my investment \t\t\t\t\tportfolio in 2010. That total comes to $112.77 for each day \t\t\t\t\tof the year. Cash.<\/p>\n

Why am I telling you this?<\/p>\n\n\n\n
<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

It’s not to brag. I was born and raised in Wisconsin. The \t\t\t\t\ttypical Midwestern mentality is so ingrained in me, I very<\/span> rarely talk about money. And I’m not one to show \t\t\t\t\toff, either. I drive a Nissan I bought six years ago. I get \t\t\t\t\tmy hair cut at Supercuts.<\/span><\/p>\n

No, I’m telling you this because I honestly think what I’ve \t\t\t\t\tdiscovered is the single best way to invest, hands down.<\/p>\n

I’m talking, of course, about the “Daily Paycheck” strategy. \t\t\t\t\tIf you’ve read Dividend Opportunities<\/em> for even a \t\t\t\t\tcouple of weeks, you’re likely familiar with Amy Calistri \t\t\t\t\tand this strategy.<\/p>\n

Amy is the Chief Strategist behind our premium Daily Paycheck<\/a><\/em><\/strong><\/span> newsletter. Her goal is to build \t\t\t\t\ta portfolio that pays at least one dividend every day of the \t\t\t\t\tyear. The idea for her advisory came from my personal “Daily \t\t\t\t\tPaycheck” experiment.<\/p>\n

I’ve been following the strategy personally for a few years \t\t\t\t\tnow. In that time, I’ve not only been able to build an \t\t\t\t\tinvestment portfolio that pays me more than 30 times a \t\t\t\t\tmonth, but the checks are getting bigger and bigger as time \t\t\t\t\tpasses.<\/p>\n

What I like best is that it’s the easiest way to invest you \t\t\t\t\tcan imagine. Once you get started, it runs on autopilot. Of \t\t\t\t\tcourse, you’ll make a few portfolio adjustments now and \t\t\t\t\tthen, but you won’t have to anxiously watch your holdings \t\t\t\t\tevery day.<\/p>\n

Now it’s time to come clean. If you start this strategy \t\t\t\t\ttomorrow, it’s unlikely you’ll be earning $112 a day by the \t\t\t\t\tweekend.<\/p>\n

I’ve been fortunate to start with a healthy-sized portfolio. \t\t\t\t\tAnd as I said, I’ve enjoyed the benefits of implementing the \t\t\t\t\t“Daily Paycheck” strategy for a few years now, so my \t\t\t\t\tpayments have grown much larger than when I started.<\/p>\n

But here’s the good news… it doesn’t matter. Whether you \t\t\t\t\thave $20,000 or $2 million, you can start your own “Daily \t\t\t\t\tPaycheck<\/a>“<\/span><\/strong> portfolio today. The results are fully \t\t\t\t\tscaleable, and anyone can have success, as long as you \t\t\t\t\tfollow eight simple rules Amy and I created to not only \t\t\t\t\tbuild our portfolios, but also manage risks…<\/p>\n

\n\n\n\n
1. Dividend payers beat \t\t\t\t\t\t\t\tnon-dividend payers.<\/strong>
\nAccording to Ned Davis Research, firms in the \t\t\t\t\t\t\t\tS&P 500 that raised dividends gained an average \t\t\t\t\t\t\t\tof +8.8% per year between 1972 and 2008. Those \t\t\t\t\t\t\t\tthat cut dividends or never paid them produced \t\t\t\t\t\t\t\tzero return over this entire time span. <\/p>\n

2. Higher yields beat lower yields.<\/strong>
\nThis is such a “no-brainer” that it doesn’t \t\t\t\t\t\t\t\trequire explanation. Clearly, a bigger dividend \t\t\t\t\t\t\t\tputs more cash in your pocket.<\/p>\n

3. Reinvesting your checks beats cashing \t\t\t\t\t\t\t\tthem.<\/strong>
\nThis buys you more shares, which leads to larger \t\t\t\t\t\t\t\tdividend checks, which buy you even more shares, \t\t\t\t\t\t\t\tand so on (this is how my dividend checks have \t\t\t\t\t\t\t\tgrown).<\/p>\n

4. Small caps beat large caps.<\/strong>
\nA 70-year study of different equity classes \t\t\t\t\t\t\t\tshowed that $1,000 invested in small-cap stocks \t\t\t\t\t\t\t\tgrew to $3,425,250. In large-cap stocks it grew \t\t\t\t\t\t\t\tto only $973,850.<\/p>\n

5. International beats domestic.<\/strong>
\nThe average U.S. stock pays just 2.0%. That’s \t\t\t\t\t\t\t\tpeanuts compared to yields overseas. Stocks in \t\t\t\t\t\t\t\tNew Zealand yield 5.4%… stocks in Portugal \t\t\t\t\t\t\t\tyield 4.1%… in Spain 5.3%… and in the Czech \t\t\t\t\t\t\t\tRepublic 4.8%.<\/p>\n

6. Emerging markets beat developed.<\/strong>
\nIt’s much easier for a small economy to post \t\t\t\t\t\t\t\tfast growth than a large one. And investors who \t\t\t\t\t\t\t\tknow this benefit. Since 1994, Vanguard’s \t\t\t\t\t\t\t\tEmerging Markets Stock Index Fund is up +268%. \t\t\t\t\t\t\t\tStocks throughout the developed world, as \t\t\t\t\t\t\t\tmeasured by Morgan Stanley’s EAFE index, are up \t\t\t\t\t\t\t\tjust +55%.<\/p>\n

7. Tax-free beats taxable.<\/strong>
\nTax-free securities often put more cash in your \t\t\t\t\t\t\t\tpocket at the end of the day — especially if \t\t\t\t\t\t\t\tyou’re in a high tax bracket. A muni fund \t\t\t\t\t\t\t\tyielding 6.0% pays you a tax-equivalent yield of \t\t\t\t\t\t\t\t9.2% if you’re in the 35% tax bracket.<\/p>\n

8. Monthly payouts beat annual payout. <\/strong>
\nGetting paid monthly is not only more convenient \t\t\t\t\t\t\t\t— you actually earn more. Thanks to \t\t\t\t\t\t\t\tcompounding, a stock paying out 1% monthly \t\t\t\t\t\t\t\tyields far more than 12% — it can actually pay \t\t\t\t\t\t\t\tyou 12.68% if you reinvest.<\/p>\n

 <\/p>\n

<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

It’s these eight rules I’ve followed to build \t\t\t\t\ta portfolio that not only paid me $112 a day in 2010, but \t\t\t\t\tthat is also seeing rising payments. In December, I earned \t\t\t\t\t59 checks, at an average daily amount of $214.18. \t\t\t\t\t(December’s payouts were higher than normal thanks to \t\t\t\t\tyear-end dividends, but there’s no doubt the payments are \t\t\t\t\tincreasing.)<\/span><\/p>\n

I’ve been investing for the better part of two decades. \t\t\t\t\tDuring that time, I’ve tried just about every strategy and \t\t\t\t\tstyle you can imagine. And don’t get me wrong — you can \t\t\t\t\tmake money any number of ways in the market.<\/p>\n

But earning thousands of dollars each month consistently? I \t\t\t\t\tnever experienced that until I implemented the “Daily \t\t\t\t\tPaycheck<\/a>“<\/span><\/strong> strategy. <\/span><\/p>\n

Good Investing!<\/p>\n

<\/span><\/span><\/p>\n

\"\"<\/span><\/span><\/span><\/p>\n

<\/span><\/span><\/p>\n

Paul Tracy
\nCo-Founder — StreetAuthority, Dividend Opportunities<\/em><\/span> <\/em><\/span><\/p>\n

<\/em>P.S.<\/strong> — My ultimate goal is to build a portfolio that pays me \t\t\t\t\t$10,000 a month. In December I pocketed $6,639, so I’m well \t\t\t\t\ton my way. To learn how easy it is to set up your own “Daily \t\t\t\t\tPaycheck” portfolio, be sure to read this memo<\/a><\/strong>. It has all the details on \t\t\t\t\thow to get started yourself.<\/p>\n","protected":false},"excerpt":{"rendered":"

That’s the amount in “daily paychecks” — more commonly known as dividends — I received from my investment portfolio in 2010. That total comes to $112.77 for each day of the year. Cash.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-21654","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/21654","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=21654"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/21654\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=21654"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=21654"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=21654"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}