It started out as an experiment. It wound up being one of the
greatest investment discoveries we've ever found.
About two years ago, StreetAuthority co-founder Paul Tracy
approached me with an idea. He wanted me to build a portfolio
ofdividend stocks that would pay out more than 30 dividend checks a
month -- one for each day of the year. In order to show he was
serious, he gave me $200,000 and a dedicated brokerage account to
I must admit, I was a little skeptical at first. The idea seemed
too good to be true. But two and a half years, 884 dividends and
more than $36,000 worth of income later, the results have been far
better than anyone could have imagined.
Since I started my portfolio back in December 2009, my initial
$200,000 investment has grown to $264,977, giving a total return of
32.5%. Even better, the payments I receive from my portfolio now
average $1,357 per month...
Icall this method of investing the
strategy. Simply put, by creating a portfolio of high-yielding
dividend stocks that pay distributions regularly and have a history
of raising their payouts, I've successfully built an income machine
that pays me each and every day.
The best part is you can do the same.
And you don't need $200,000 either. My results are fully scalable.
So whether you have $1,000,000 to invest or $10,000, you can still
earn a steady income stream using this strategy.
Now, admittedly, there's another step to my strategy that has
helped me accelerate my income stream these past few years, and I
would be doing you a disservice if I didn't share it with you.
See, while it's tempting to take the cash that my portfolio is
generating (who wouldn't want an extra $1,357 per month in the
bank), I've found I can earn even more money by simply reinvesting
my dividends. By using my dividends to purchase moreshares
,compounding takes over. As a result, my next payment will be
larger, which then buys more shares, and so on.
Consider two income investors, both of whom start a Daily Paycheck
portfolio with just $20,000. But one of those investors chooses to
take the cash and spend it as he pleases. The other decides he
wants to reinvest his dividends.
Assuming they both earn a 7%yield , the chart on the right shows
you the difference compounding can make. After 10 years, the
investor who reinvested his dividends is generating $2,754 in
annual income -- nearly double the amount earned with no
And if the holdings happened to boost their dividends by just 5%
annually -- something even giant blue chip
has been able to beat -- the portfolio earns 278.5% more income
when compared to the investor who didn't reinvest.
In fact, the investor who reinvests could be generating
aneffective yield of 26.5% based on his initial $20,000
If you have even a little bit more time on your investment horizon
(or more money to invest, or additional dollars to invest each
year), then the numbers only get better. And keep in mind that
these are conservative estimates. They don't include one penny
ofcapital appreciation .
Of course, I understand if you want your money now and you choose
not to reinvest your dividends.
By not reinvesting your dividends, you will sacrifice the benefit
of compound growth. But even so, the average yield on my portfolio
is still 6.9% -- more than three times the average yield of the
S&P 500 -- and many times more than the averagesavings account
Before I started
The Daily Paycheck
portfolio, I was anxious about generating a portfolio that could
support me once I retired. I'm no longer anxious. Like my company
portfolio, my personal portfolio is generating more and more income
every month. And I know that when retirement comes, I can just
flick off the dividend reinvestment switch and start living off the
That's the power of my
strategy, and it's something I want every investor to
-- Amy Calistri
[Note: For more information on how you can start building your
own Daily Paycheck portfolio, I've put together a special
presentation that outlines how I'm earning the $1,357 per month
income stream (and the brokerage statement to prove it). To view
this free presentation -- including a few high-yield picks to get
started -- you can visit this link.]
Amy Calistri owns shares of T.StreetAuthority LLC owns shares of
T in one or more if its "real money" portfolios.