{"id":25836,"date":"2011-12-07T08:44:25","date_gmt":"2011-12-07T13:44:25","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=25836"},"modified":"2011-12-07T08:44:25","modified_gmt":"2011-12-07T13:44:25","slug":"the-8-rules-i-use-to-earn-124-29-in-dividends-per-day","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/12\/07\/the-8-rules-i-use-to-earn-124-29-in-dividends-per-day\/","title":{"rendered":"The 8 Rules I Use to Earn $124.29 in Dividends Per Day"},"content":{"rendered":"

By Paul Tracy, <\/span>globaldividends.com<\/a><\/strong><\/p>\n

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

$41,513.18<\/strong>.<\/p>\n

That’s the amount in “daily paychecks” — more commonly known as dividends — I’ve received from my investment portfolio in 2011. That total comes to $124.29 for each day of the year. Cash.<\/p>\n\n\n\n
\u00a0 <\/ins><\/ins><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Why am I telling you this?<\/span><\/p>\n

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

No, I’m telling you this because I honestly think what I’ve discovered is the single best way to invest, hands down.<\/span><\/p>\n

I’m talking, of course, about the “Daily Paycheck” strategy. If you’ve read Dividend Opportunities<\/em> for even a couple of weeks, you’re likely familiar with Amy Calistri and this strategy.<\/p>\n

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

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

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

Now it’s time to come clean. If you start this strategy tomorrow, it’s unlikely you’ll be earning $124 a day by the weekend.<\/p>\n

I’ve been fortunate to start with a healthy-sized portfolio. And as I said, I’ve enjoyed the benefits of implementing the “Daily Paycheck” strategy for a few years now, so my payments have grown much larger than when I started.<\/p>\n

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

\n\n\n\n
\n

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

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

3. Reinvesting your checks beats cashing them.<\/strong>
\nReinvesting buys you more shares, which leads to larger dividend checks, which buy you even more shares, and so on (this is how my dividend checks have grown).<\/p>\n

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

5. International beats domestic.<\/strong>
\nThe average U.S. stock pays just 2.1%. That’s peanuts compared to yields overseas. Stocks in New Zealand yield 4.9%… stocks in France yield 4.7%… in Germany 4.0%… and in the U.K. 3.9%.<\/p>\n

6. Emerging markets beat developed.<\/strong>
\nIt’s much easier for a small economy to post fast growth than a large one. And investors who know this benefit. Over the past 10 years, Vanguard’s MSCI Emerging Markets ETF (NYSE: VWO<\/a>) has gained an average of 10.7% per year. Stocks throughout the developed world, as measured by the MSCI EAFE Index, have been up an average of just 4.8% per year.<\/p>\n

7. Tax-free beats taxable.<\/strong>
\nTax-free securities often put more cash in your pocket at the end of the day — especially if you’re in a high tax bracket. A muni fund yielding 6.0% pays you a tax-equivalent yield of 9.2% 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 — you actually earn more. Thanks to compounding, a stock paying out 1% monthly yields far more than 12% — it can actually pay you 12.68% if you reinvest.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n


\n<\/span> It’s these eight rules I’ve followed to build a portfolio that has not only paid me $124 a day in 2011, but that is also seeing rising payments. In November, I earned 37 checks, at an average daily amount of $160.30.<\/span><\/p>\n

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

But earning thousands of dollars each month consistently? I never experienced that until I implemented the “Daily Paycheck<\/a><\/strong>” strategy.
\n
\n<\/span> Good Investing!<\/span><\/p>\n

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

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

P.S.<\/strong> — My ultimate goal is to build a portfolio that pays me $10,000 a month. In November I pocketed $4,808.87, so I’m well on my way. To learn how easy it is to set up your own “Daily Paycheck” portfolio, be sure to read this memo<\/a><\/strong>. It has all the details on how to get started yourself.<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Paul Tracy, globaldividends.com I counted twice, just to be sure… $41,513.18. That’s the amount in “daily paychecks” — more commonly known as dividends — I’ve received from my investment portfolio in 2011. That total comes to $124.29 for each day of the year. Cash. \u00a0 Why am I telling you this? It’s not to … <\/p>\n

Continue reading “The 8 Rules I Use to Earn $124.29 in Dividends Per Day”<\/span><\/a><\/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-25836","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/25836","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=25836"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/25836\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=25836"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=25836"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=25836"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}