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
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
See, while it's tempting to take thecash 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 moremoney by simply reinvesting
my dividends. By using my dividends to purchase moreshares
,compounding takes over. As a result, my next paymentwill be
larger, which then buys more shares, and so on.
Consider two income investors, both of whom start a
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 giantblue 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 investment.
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
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.
Action to Take -->
But by not reinvesting your dividends, you will sacrifice the
benefit ofcompound growth. But even so, the average yield on my
portfolio is still 6.6% -- 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
So now that you know the idea behind my newsletter, I bet you are
wondering how I pick stocks to add to my real money portfolio. I
call that the
A three-part system that includes finding double-digit yielders
and stable dividend growth, but that's just part of it...
Click here to learn more