adding a sunroom to existing house barrington hills bungalow kitchen remodel huntley addition on a ranch house bartlett house bump out island lake coastal remodeling .. Chicago Drug testing

Investing in Dividend Paying Stocks

I was recently interviewed for a press release through a financial question and answer format. One of the questions asked of me in the interview was:

Where do you think the stock market is headed over the next five years?

My Answer!

Charles M. O'Melia: No one knows! There is an old Chinese proverb that goes something like this: "He, who could foresee events 3 days in advance, would be rich for thousands of years." On a long-term basis I have only witnessed expansion and progress. I believe that to be the nature of our American economy and our American way of life. And as our economy goes, so goes the stock market and I see no reason to change that belief.

Who would have thought the expansion in China would generate 5 billion dollars of business for GE? The US companies listed on the New York stock exchange have the ability to profit throughout the global expansion of business around the world. And, an investor can profit without the necessity of having to own an overseas fund or companies to profit.

Up until that question, the thought of what the market was going to do tomorrow (or for that matter, 5 years from now) have never concerned me. I never gave it a thought (Well, maybe a little!). There just isn't enough concern on my part whether we are heading for a bear market or a bull market, or if the markets are heading sideways.

When you own a portfolio filled with companies that have a history of raising their dividend every year, and a systematic approach of adding more shares to the portfolio through the dividend reinvestments every quarter, plus having a simple savings plan with an opportunistic buying approach of adding even more shares to the portfolio every quarter, it really doesn't matter. I am always buying more shares.

Sometimes I pay too much for one of my companies; sometimes I receive a great bargain. But no matter which, bargain or expensive, my income from those companies always continues to grow and grow and grow and grow and grow.

Sometimes, the dividend yield of one stock may be 5.15%, and the following year or two (even with two dividend increases during those two years) the dividend yield would drop to less than 3%. This, for example, may mean the stock price would have risen from the 30 dollar range to the 60 dollar range. I have found that when that 5.15% dividend yield drops to around 1%, the company's stock in question becomes so high that the company usually has a stock split, as well as a dividend increase.

Right now, the DOW seems to be having trouble breaking that 11,000 barrier. And, right now, I can't help thinking back, way, way, back.

For those of you who don't remember the late 1960's, early 70's, the DOW barrier was 1,000.

Oh, what a tough time that DOW 1,000 barrier was! I remember thinking ? it's going to break it this time. Back in 1966 was the first attempt (rose to 985) and it kept on trying to break the 1,000 barrier for the next 6 years. When it finally broke 1,000 (it reached 1,050 or so, in 1972), it immediately fell back. It took another 10 years before the DOW broke the 1,100 barrier. Six years for the DOW at 985 to break 1,000. Another 10 years to break 1,100. A total of 16 years to add a mere 115 points on the DOW.

So, is the 11,000 barrier in the DOW today similar to the 1100 barrier of times-gone-by? Will 11,000 on the DOW become a 16 year barrier? Could be! Then again, maybe not! I don't know! "He, who could foresee events etc."

In the meantime, I will continue watching my dividend income continue to grow and grow and grow and grow and grow!

To find the LINK for the complete financial interview visit: http://www.thestockopolyplan.com

You have permission to this article either electronically or in print as long as the author bylines are included, with a live link and the article is not changed in any way. Please provide a courtesy emailto: charles@thestockopolyplan.com telling where the article was published. (Word Count 706)

Charles M. O'Melia is an individual investor with almost 40 years of experience and passion for the stock market. The author of the book 'The Stockopoly Plan ? Investing for Retirement'; published by American-Book Publishing. The book can be purchased at http://www.pdbookstore.com/com files/pages/CharlesMOMelia.shtml

In The News:

Complacency

During the month of January the Dow Jones Industrial Average,... Read More

Financial Crime

Congress recently passed another new law that is supposed to... Read More

Catnip of the Stock Market

I have watched my cat play with a bag of... Read More

Your Job

There are so many kinds of work that needs to... Read More

The Value of Stocks of a Company

The debate rages all over Eastern and Central Europe, in... Read More

Index Fund Trading Using Technical Analysis and Swing Trading Strategies

Index Fund Trading can be one of the most profitable...or... Read More

Mutual Fund Commissions

You have heard about a particular mutual fund from a... Read More

Online Broker Trade History Not Doing the Job

Let me start by saying that...Most online brokers do not... Read More

Market Timing

Every broker and financial planner will tell you that you... Read More

The 1% Solution

You probably know the story of Sherlock Holmes and the... Read More

How to Pay Less and Get More: Discount Broker vs Professional

How do you invest? What do you really pay? At... Read More

Where Is The Beef?

Where is the beef? Or maybe it should be where... Read More

A Funny Thing Happened on the Way to the Stock Market

On the 40 year journey through the turmoil of a... Read More

DIY Portfolio Management

Exchange Traded Funds (ETFs) are growing. Investors are choosing low... Read More

Enron Cure

Let's hope you did not have any of the Enron... Read More

Social Insecurity

Just about everything you have been told about Social Security... Read More

How We Eluded The Bear Of 2000

The date October 13, 2000 will forever be embedded in... Read More

Rebalance And Diversify

The stock market has not been very kind to your... Read More

The Shadow

The Shadow knows. There used to be a radio program... Read More

Prosperity

It has fallen upon the consumer to make our economy... Read More

Protectionism

First let's see what protectionism is. According to Mr. Webster... Read More

The Bottom?

Every day I hear someone on CNBC proclaim that "this... Read More

Gold Fever

Right now there doesn't seem to be any "gold fever".... Read More

The Seven Mistakes All Novice Traders Make and How to Correct Them

We learnt the following the hard way! If any of... Read More

401K-itis

Are you one of those many people who dread reading... Read More

street light replacement commercial lighting Pete's produce ..
street light replacement commercial lighting Pete's produce ..