Or, you could pay your car payment, take a trip to visit
the grandkids or go on a long overdue vacation. It's
possible thanks to the income generating power of
options. And best of all, options are actually much
safer than you've been led to believe - if you know what
less than 1 in 4 investors know about using options to
generate income.
For a proven way to increase income in
retirement, click here.
$7,200 in Dividends From a $10,000 Investment
It's the most lucrative investing strategy
I've ever found. It won't happen overnight, but I'm
convinced anyone can earn a significant amount of money with
this strategy.
Let me explain...
Over the past few weeks, I've shared the details of my "Daily
Paycheck" strategy (you can read those issues
here,
here, and
here).
Consider your typical income portfolio. It holds a position
in a few dividend payers and maybe a fund or two. You get
paid occasional dividends, that's for sure. But because you
only hold a few positions that pay quarterly dividends, the
income you receive is inconsistent.
That's where my "Daily Paycheck" strategy is different. The
goal is to build a high and steady stream of income. And as
I've told you before, I want to build a portfolio that pays
a dividend for every day of the year.
So right now, I'm earning more than 30 dividend checks a
month from my portfolio. At the same time, I'm generating an
average yield of 7.2%... and that's when interest rates --
which fuel the yields on most "normal" income investments --
are their lowest in history.
There's a major caveat, though. And it's one that will cause
most investors to never take the first step to start their
own "Daily Paycheck" portfolio. Most investors don't have
the most important characteristic that allows you earn the
greatest wealth via this strategy -- patience.
Take a $10,000 investment. In a portfolio like mine that
earns an average yield of 7.2%, that amount would earn $720
in dividend income during the year. I wouldn't sneeze at
$720, but it's just a fraction of what you could earn if you
simply let your portfolio pay you year after year.
The table below shows exactly what I mean. It shows how much
you'd earn... if you have patience. As you can see, even
modest amounts can generate substantial dividends.
Your $10,000 investment would earn a staggering $7,200 in
dividends in a decade. And that amount is before
any capital gains and ignores any dividend increases.
How Much Can You Earn?
Simply Look For Your Portfolio Size
Time Period:
1 Month
1 Year
5 Years
10 Years
Portfolio Size:
$10,000
$60
$720
$3,600
$7,200
$25,000
$150
$1,800
$9,000
$18,000
$50,000
$300
$3,600
$18,000
$36,000
$100,000
$600
$7,200
$36,000
$72,000
$200,000
$1,200
$14,400
$72,000
$144,000
$500,000
$3,000
$36,000
$180,000
$360,000
$1,000,000
$6,000
$72,000
$360,000
$720,000
*Numbers based on 7.2%
average yield (the current average yield of my portfolio). All
investing carries risk and no results are guaranteed. The figures
above will also be subject to taxes and commissions.
I want to make something clear... this isn't a
"get-rich-quick" scheme. You aren't going to invest a few
thousand dollars and be buying expensive sports cars or
going on exotic vacations.
But I think that's part of what makes this style of
investing so powerful...
See, if you want to become wealthy in the stock market, it's
probably not going to happen overnight. (Just ask early
investors in Facebook (Nasdaq: FB)) ... they're already down
26% on their original investment -- and the stock has only
been trading for a week.)
The key is finding stocks that will pay you consistent
dividends... and having the patience to let them grow your
wealth over the long-term.
Truth be told, there's a lot more to share about my "Daily
Paycheck" strategy. I've been building my own portfolio for
more than two years, earning more than $28,000 in total
dividends so far. To learn more about how you can do the
same -- without having to watch a video -- you can read my
presentation
here.
Always searching for your next paycheck,
Amy Calistri
Chief Investment Strategist --
The Daily Paycheck
Disclosure:
Amy Calistri does not own shares of the securities mentioned
in this article. In accordance with
company policies, StreetAuthority always provides readers with
at least 48 hours advance notice before buying or selling any
securities in any "real money" model portfolio.
Members of our staff are restricted from buying or selling any
securities for two weeks after being featured in our advisories
or on our website, as monitored by our compliance officer.
Income
Notes
Lowe's Companies Inc. (NYSE: LOW), the popular home improvement
store, just announced it was increasing its quarterly dividend
14% to $0.16 a share. Based on today's closing price, the
company will offer a 2.3% dividend yield.
-- Research Staff
10 Best Retirement Income Stocks
Now
Some pay quarterly.
Others pay monthly. All offer you a safer, more
stable, and reliable source of high income even if the
market goes down.
A major
disconnect has appeared in one of the highest-yielding sectors of
the market. The last time I saw this sort of opportunity, my
investment was up 80% in just six months.
I recently
told Dividend Opportunities readers about this high-yielding sector,
and now I want to tell you about one security in that sector that
just hit a 5-year high and has the potential to keep growing.
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