It started out as an experiment. It wound up being one of the
greatest investment discoveries we've ever found.
Less than five years ago, StreetAuthority co-founder Paul
Tracy approached me with an idea. He wanted me to build a
that would pay out more than 30 dividend checks a month -- one
for every day of the year. In order to show he was serious, he
gave me $200,000 and a dedicated brokerage account to get
I must admit, I was a little skeptical at first. The idea
seemed too good to be true. But less than five years, more than
1,574 dividends and over $65,000 worth of dividend income later,
the results have been far better than anyone could have
Since I started my portfolio back in December 2009, my initial
$200,000 investment has grown to more than $310,000, giving me a
total return of more than 55% in less than five years. The total
dividends I've received amount to more than $65,000.
Even better, during the past year, I've earned nearly $17,000
in dividends, amounting to $1,382 a month.
I call this method of investing
. 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
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 the cash that my portfolio is
generating (who wouldn't want an extra $1,382 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 more
shares, 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. 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 below 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 AT&T (NYSE:
) 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
an effective 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 of capital appreciation.
Of course, I understand if you want your money now and you
choose not to reinvest your dividends.
But by not reinvesting your dividends, you will sacrifice the
benefit of compound growth. Even so, the average yield on my
portfolio is still 6.0% -- more than three times the average
yield of the S&P 500 -- and many times more than the average
Before I started my premium advisory,
The Daily Paycheck
, I was anxious about generating a portfolio that could support
me once I retired. I'm no longer anxious. Like my Daily Paycheck
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 income.
That's the power of my Daily Paycheck strategy, and it's
something I want every investor to experience.
: Now that you know the idea behind my newsletter, I bet you are
wondering how to build your own
portfolio. You're not the only one. That's why I was recently
invited to speak in front of a live audience at St. Edward's
University to present exactly how my Daily Paycheck Strategy
works, and how I'm using it to earn $1,382 per month. To view
this exclusive presentation -- which includes a few high-yield
picks to get you started --
you can visit this link
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