The Dividend Chart You Have To See

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I have a chart that I want to show you. It's nothing complex or hard to understand. In fact, I take pride in how simple it is to read.

You'll be surprised that the information shown in this chart is the result of just under four years of work; but you'd never know it at first glance. Most people think it took a decade to cultivate.

You might also think that replicating what my chart shows takes a fortune to pull off. I've done it with a $200,000 initial investment. That's nothing to sneeze at, but it's far from an extraordinary amount of money.

The results are also fully scalable. If you only have half that amount to invest, you'll receive half of what my chart shows -- still a considerable amount of money. If you have $400,000 at work, just double my numbers. Anyone -- and any dollar amount -- can replicate my performance.

But the best news is that what this chart shows is the result of a strategy you can start today. It doesn't take a Ph.D. to follow. You don't have to track the market every day -- or every week for that matter. The beauty of this strategy is that it takes care of itself.

In fact, the primary investing "skill" you need is patience. If you can allow yourself to build a portfolio without having to constantly fuss over it, make unnecessary trades, or live and die by daily fluctuations, you can achieve these results.

My chart below shows what I'm talking about. Listed are the total amounts of the "paychecks" I've received over the past 13 months using my "Daily Paycheck" strategy. As you can imagine, I've been pretty happy:

The strategy is simple. By investing in a simple blend of high-yield, dividend-paying securities, I've succeeded in building an income machine that pays me each and every day.

Many of my holdings pay a dividend once a month -- like Calamos Convertible & High Income Fund (Nasdaq: CHY) . While others -- like Brookfield Infrastructure Partners ( BIP ) -- are increasing dividend payments at a fast clip.

For the past year, my "paychecks" (that's my nickname for dividend and interest payments from my holdings) have averaged more than $1,350 each month -- and a couple of months, the checks have added up to more than $1,600.

Imagine if you're a retiree -- that's a nice stream of cash from your investments to supplement any other income you might have.

The paychecks ramped up quickly as I rolled out the $200,000 portfolio in my Daily Paycheck advisory (and yes, that is real money).

But there's another step if you really want to see your income stream accelerate over time... it's why patience is key.

It's tempting to take the cash. Who wouldn't want an extra $1,600 per month in the bank? But I strongly recommend reinvesting your paychecks. By using your dividends to purchase more shares, compounding takes over. Your next payment will be larger, even if the dividend payment doesn't increase.

I won't lie, reinvesting does take a little time to see a major impact -- that's why patience is so important. (And before you start, give your broker a ring to make sure they offer reinvestment at no extra commission.)

But I think you can see from the performance so far that my "Daily Paycheck" strategy is one of the most promising ways to capture the most income from the market.

There is plenty more to share about my "Daily Paycheck" strategy ... which is why the StreetAuthority research team and I have put together a special presentation that outlines exactly how I find investments that allow me to earn roughly $1,350 per month in income.

As a bonus, my team and I are introducing a new idea. We call them "Hidden High-Yielders" because these are stocks with double-digit yields that for some reason the media show with only 1% yields. This idea is brand-new and the secret may not last long. To find out everything you need to know, I encourage you to click here now.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.


This article appears in: Investing , Investing Ideas , Stocks

Referenced Stocks: BIP

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