When you invest in the stock market for ever-increasing cash dividend income, verses trying to make a buck in the stock market, your mindset will change. There will no longer be a fear of losing money in the stock market. With the right type of investment plan and investment choices all worries of losing money in the stock market will disappear.
The mind set that will emerge when you adopt a proven income producing investment plan in the stock market will create an air of worry-free concern about the up and down turmoil of a volatile stock market. Whether your investment portfolio is rising or falling won't make a difference. Your income producing investment plan will prove to continually increase your cash dividend income from all your stock market investments, on a weekly, monthly and yearly basis.
The use of a proven investment plan will allay all fears about investing in the stock market. Why? Because the proven investment plan is based on two very simple and fundamental investment strategies ? investing in only those companies that have a historical record of raising their dividend every year, and having the dividends from those companies rolled back into more shares each quarter, until retirement.
By investing in only those companies that raise their dividend every year you will become confident and assured of each stock market investment. And by having the dividends of each company rolled back into more shares each quarter you automatically dollar-cost average into the company's stock throughout the years.
What happens when you invest with this mind set ? investing for ever-increasing cash dividend income through companies that raise their dividend every year, rather than trying to make a buck in the stock market?
1. You begin investing in only those companies that have a proven record of rewarding their shareholders every year. Every dividend rolled back into the company's stock every quarter increases the amount of shares owned, and therefore, every dividend from the company will be higher than the previous dividend. After 10 or 15 years, you'll find that that cash dividend begins to add up!
2. The cash dividend income will increase every quarter, no matter what the stock price of the company is at any given time in the market place. As a matter of fact, once you have owned the stock for 10 or 15 years, you'll be torn as to whether you want the stock to go up or to go down, since a lower stock price will allow your dividend reinvestment to purchase more shares, thereby accelerating your cash dividend income.
3. The rising dividend every year will help off-set the risk of inflation. This will be especially helpful when you retire and start having the dividends sent home, rather than having the dividends rolled over into more shares. During the retirement years, when the dividend is being sent home to help ends-meet, the price of the stock doesn't matter. Your income increases every year anyway, because every company owned has a program of raising their dividend every year.
4. After retirement, if your account is worth $250,000 one year and due to a severe drop in the stock market, the net value of your securities drops to $200,000, the net worth of the securities at $200,000 would still generate a higher cash dividend income. The net worth of your holdings means little, if the income produced from your holdings is increasing every year, no matter what the net worth. That is the partial reasoning behind investing in only those companies that raise their dividend every year. The other reason is to eliminate risk in investing in the stock market. A company that has been raising their dividend every year MUST be doing something right or the money wouldn't be there to pay their shareholders ever-increasing cash dividends.
5. The lower the stock price goes, after your initial investment, the higher the dividend yield of the stock. This is extremely powerful and beneficial for you when you are still having the dividends reinvested. Reinvesting those dividends at a lower stock price accelerates your cash dividend income. And if you are in retirement and no longer investing in the stock, the lower stock price does not affect your dividend income at all. The cash dividend income will still increase every year due to the company's program of raising their dividend every year.
As time goes on using this type of investment plan/approach you will discover that by reinvesting those ever-increasing cash dividends, coupled with stock appreciation is a very powerful wealth creating formula!
For more excerpts from the book 'The Stockopoly Plan ? Investing for Retirement' visit: www.thestockopolyplan.com
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: www.thestockopolyplan.com
after renovation cleaning Wilmette ..An investor can find and research the best stock on... Read More
Mutual funds were created with the idea that one person... Read More
Being wrong is OK, but let's not carry it to... Read More
Index Fund Trading can be one of the most profitable...or... Read More
This is a guide to the different types of mutual... Read More
There can't be many traders who haven't at least considered... Read More
It is finally catching up with them. The brokerage companies... Read More
When we go to the circus we see a trapeze... Read More
There are many important things you need to know to... Read More
Mutual funds were moderately successful in creating a presence in... Read More
It seems that every day I turn on the TV... Read More
How do you invest? What do you really pay? At... Read More
Stocks breakout from properly formed bases everyday but many investors... Read More
One of the most believed bits of conventional wisdom from... Read More
Maximizing a stock market investmentThere are several factors an investor... Read More
I have been trading for several decades and was an... Read More
During the day I watch CNBC-TV, the stock market channel.... Read More
When you become interested in a stock or mutual fund... Read More
I feel that an investment strategy in the stock market... Read More
A colleague of mine just returned from a scuba diving... Read More
You remember (they show it on TV every year) the... Read More
You've decided to try your luck at trading stocks or... Read More
Just about everything you have been told about Social Security... Read More
This is the continuing story of our two imaginary traders,... Read More
Everybody is riding the Wall Street Roller coaster. Even if... Read More
interior house cleaning Wilmette ..I don't know what kind it is, but I saw... Read More
Success in small cap & micro cap stock trading like... Read More
From the book 'The Stockopoly Plan' by the author Charles... Read More
There are so many kinds of work that needs to... Read More
I love roller coasters. The steeper the better. High and... Read More
When it comes to stock market trading it PAYS to... Read More
Before you buy another car you walk around the lot,... Read More
Do you have a nest egg? You know, a place... Read More
There are many good penny stock investments available, which could... Read More
Peter is a professional trader, Paul is not. Peter has... Read More
One of the basic laws of physics states that a... Read More
The recent criminal fiasco in the mutual fund industry is... Read More
I am taking the time to help others learn the... Read More
It looks like the market is ready to start up... Read More
If there is one term over-used when talking about making... Read More
Being wrong is OK, but let's not carry it to... Read More
I have watched my cat play with a bag of... Read More
On Monday, November 25, 2000 Investor's Business Daily listed on... Read More
Everyone who follows the financial news has heard of mutual... Read More
People are constantly asking me why is the stock market... Read More
At some time in your life you have been on... Read More
The trash business in its efforts to cook their books... Read More
Wall Street has been preaching for years and years to... Read More
Did you run out to buy that duct tape yet?... Read More
When you become interested in a stock or mutual fund... Read More
Stocks & Mutual Fund |