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
Hillside car service to O'Hare ..I often play a little game with myself when I... Read More
During our travel down life's path we come to many... Read More
Just 30 years ago the stock market was a shadow... Read More
As GuruFocus updates the stock buys and sells of gurus,... Read More
It is wonderful to be alive in the information age.... Read More
After finding the price of a particular stock, usually the... Read More
In 1960 an engineer working for a watch company in... Read More
A PEG ratio cannot be used alone but is a... Read More
If you're like many investors who squander those small dividend... Read More
One of the basic laws of physics is that a... Read More
Outlined below are some of the advantages and disadvantages of... Read More
When it comes to 401k's there is an overabundance of... Read More
I have watched my cat play with a bag of... Read More
Mutual funds are doing more and more to discourage investors... Read More
Never lose money in the stock market again. Yeah, I... Read More
(1) CHK stock price $16.74, NAV $32.5CHK is my favorite... Read More
For the year 2000 we have seen hundreds of mutual... Read More
One Saturday morning, while he was sitting at his computer... Read More
One of the main reasons many of us get into... Read More
You have decided to buy some stock or mutual funds,... Read More
Wall Street has been preaching for years and years to... Read More
It is commonly reported that the stock market averages about... Read More
There are many good penny stock investments available, which could... Read More
AS BUILDERS BEGIN WORK ON THE FREEDOM TOWER in New... Read More
If there is one term over-used when talking about making... Read More
Fond Du Lac Chicago limousine service ..Humpty Dumpty had a great fall and all the King's... Read More
Now where have I heard that before? I know. It... Read More
You probably know the story of Sherlock Holmes and the... Read More
Very few people, even professionals, have heard of the Dalbar... Read More
When you become interested in a stock or mutual fund... Read More
All stock trading and investing methods must deal with the... Read More
This article describes the model of a natural relationship between... Read More
I use the P/E ratio as a secondary indicator for... Read More
There can't be many traders who haven't at least considered... Read More
Options trading can increase the profits you make when trading... Read More
Stocks breakout from properly formed bases everyday but many investors... Read More
We learnt the following the hard way! If any of... Read More
Everyone who follows the financial news has heard of mutual... Read More
It looks like the market is ready to start up... Read More
Stock investment advice is easy to find. Do you get... Read More
Let's first define insanity. It is doing the same thing... Read More
Even if you don't own any of their stock or... Read More
I am hearing predictions by brokers, financial planners, talk show... Read More
Do you have a financial planner? Does one of your... Read More
Just about everything you have been told about Social Security... Read More
I'll bet with almost anyone that has stocks or mutual... Read More
The thinking process of the brain relating to the... Read More
The World Bank claims that some two billion of the... Read More
Let's hope you did not have any of the Enron... Read More
When it comes to mutual funds, there is a lot... Read More
Stocks & Mutual Fund |