I counted twice, just to be sure.
That's the amount in "daily paychecks" -- more commonly known as
dividends -- I've received from myinvestment portfolio in the past
12 months. That total comes to $1,358 a month. Cash.
I'm not telling you this to brag. I'm telling you because I
firmly believe that my system of investing is hands down one of the
best ways to invest in the stockmarket .
Whether you're 28 or 88... whether you're a millionaire or just
getting started... and whether you have an MBA or didn't graduate
high school... you can make money using this strategy.
The best part is all you need is 10-minutes a month. That's it.
You could be earning hundreds, if not thousands of dollars in extra
income, in literally less time than it takes you to shower in the
If you're a regular StreetAuthority.com reader, then you've
probably figured out by now that I'm talking about the
Simply put, the goal of this strategy is simple. By investing in
a basket of high-quality income stocks that pay dividends
regularly, I've successfully built a portfolio that pays me
adividend for every day of the year. In October alone I collected
34 dividends for a total of $1,332.
To be fair, my results are based on a starting position of
$200,000. But that doesn'tmean you need that much to be successful
using the Daily Paycheck system. My results are fully scalable. So
whether you have $500,000 or $5,000 to invest, this style of
investing can work for you.
The secret to this system lies in something I like tocall "the
Dividend Trifecta." Put simply, The Dividend Trifecta is a
three-part approach to dividend investing that multiplies the
effectiveness of every dollar you invest.
For example, one approach in The Dividend Trifecta involves
investing in what I like to call "Fast Dividend Growers." These are
companies that are increasing dividend payments up to 15% a
The logic here is simple. When you invest in companies that are
steadily growing their dividend year in and year out, then you're
buying a dominant business with strong cash flows whose dividend
payment you can rely on -- making them the perfect fit for my
Unfortunately, these stocks are pretty rare. Standard &
Poor's has aDividend Aristocrats Index that's made up of stocks
that have increased dividends for 25 years or more. Only 42 stocks
made it into the index at last count.
The good news? There are a number of companies that have
consistently raised their dividends for years, but simply haven't
made it the full 25 years...
By my estimates, there are about 100 securities I'd say fill the
bill as a way to grow your income.
And if you buy theirshares and let these securities pay you over
the long term, then you can earn some enormous dividend yields.
Take a look at one of my portfolio holdings,
Magellan Midstream Partners (NYSE:
, for example...
When I added Magellan Midstream Partners to my
portfolio in February 2010, the master limitedpartnership paid an
annual dividend of $1.42 per share. Trading at a split-adjusted
price of roughly $21 per share, any investor could have picked up
the stock and locked in a solid 6.7%yield .
However, Magellan Midstream Partners increased its dividend 11
times since then. Today it is paying $1.94 per share. That's a
36.6% dividend increase in less than three years. That gives anyone
who bought the company back when I recommended it a 9.2% yield on
their original investment.
This company could grow its dividend for years to come. If it
sustains its 11% annual dividend growth rate, then in 2015 (just
three years from now) the company could pay $2.65 per share in
That's a 12.6% yield on your original 2010
Meanwhile, from the time I recommended Magellan Midstream
Partners through the end of October, the shares have appreciated
114% -- including dividends, my subscribers have enjoyed a total
return of 144.6%.
Action to Take -->
That's the power of investing in "Fast Dividend Growers," and it's
why I've considered them as one of the main elements of
"The Dividend Trifecta."
When you invest in fast-dividend growing stocks, you're buying
companies whose stable dividends can pay you steady income --
regardless of market conditions.
-- Amy Calistri
P.S -- Now, there's plenty more to share about "The Dividend
Trifecta"... and I don't have the space to include it all here.
Instead, I've put together a special presentation that outlines the
other two elements of this investing approach. To view this free
presentation -- you can visit this link.
Amy Calistri does not personally hold positions in any
securities mentioned in this article. StreetAuthority LLC owns
shares of MMP in one or more of its "real money" portfolios.
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