By Charles O'Melia
When you invest in the stock market for ever-increasing cash
dividend income, verses trying to make a buck in the stock
market, your mind set will change. There will no longer be a fear
of losing money in the stock market. With the right type of
investment plan and investment choices all worries of losing
money in the stock market will disappear.
The mind set that will emerge when you adopt a proven income
producing investment plan in the stock market will create an air
of worry-free concern about the up and down turmoil of a volatile
stock market. Whether your investment portfolio is rising or
falling won’t make a difference. Your income producing investment
plan will prove to continually increase your cash dividend income
from all your stock market investments, on a weekly, monthly and
yearly basis.
The use of a proven investment plan will allay all fears about
investing in the stock market. Why? Because the proven investment
plan is based on two very simple and fundamental investment
strategies – investing in only those companies that have a
historical record of raising their dividend every year, and
having the dividends from those companies rolled back into more
shares each quarter, until retirement.
By investing in only those companies that raise their dividend
every year you will become confident and assured of each stock
market investment. And by having the dividends of each company
rolled back into more shares each quarter you automatically
dollar-cost average into the company’s stock throughout the
years.
What happens when you invest with this mind set – investing for
ever-increasing cash dividend income through companies that raise
their dividend every year, rather than trying to make a buck in
the stock market?
1. You begin investing in only those companies that have a proven
record of rewarding their shareholders every year. Every dividend
rolled back into the company’s stock every quarter increases the
amount of shares owned, and therefore, every dividend from the
company will be higher than the previous dividend. After 10 or 15
years, you’ll find that that cash dividend begins to add up!
2. The cash dividend income will increase every quarter, no
matter what the stock price of the company is at any given time
in the market place. As a matter of fact, once you have owned the
stock for 10 or 15 years, you’ll be torn as to whether you want
the stock to go up or to go down, since a lower stock price will
allow your dividend reinvestment to purchase more shares, thereby
accelerating your cash dividend income.
3. The rising dividend every year will help off-set the risk of
inflation. This will be especially helpful when you retire and
start having the dividends sent home, rather than having the
dividends rolled over into more shares. During the retirement
years, when the dividend is being sent home to help ends-meet,
the price of the stock doesn’t matter. Your income increases
every year anyway, because every company owned has a program of
raising their dividend every year.
4. After retirement, if your account is worth $250,000 one year
and due to a severe drop in the stock market, the net value of
your securities drops to $200,000, the net worth of the
securities at $200,000 would still generate a higher cash
dividend income. The net worth of your holdings means little, if
the income produced from your holdings is increasing every year,
no matter what the net worth. That is the partial reasoning
behind investing in only those companies that raise their
dividend every year. The other reason is to eliminate risk in
investing in the stock market. A company that has been raising
their dividend every year MUST be doing something right or the
money wouldn’t be there to pay their shareholders ever-increasing
cash dividends.
5. The lower the stock price goes, after your initial investment,
the higher the dividend yield of the stock. This is extremely
powerful and beneficial for you when you are still having the
dividends reinvested. Reinvesting those dividends at a lower
stock price accelerates your cash dividend income. And if you are
in retirement and no longer investing in the stock, the lower
stock price does not affect your dividend income at all. The cash
dividend income will still increase every year due to the
company’s program of raising their dividend every year.
As time goes on using this type of investment plan/approach you
will discover that by reinvesting those ever-increasing cash
dividends, coupled with stock appreciation is a very powerful
wealth creating formula!
To read the PREFACE from the book ‘The Stockopoly Plan –
Investing for retirement’ visit: www.thestockopolyplan.com
About the Author: Charles M. O’Melia is an individual investor with almost 40 years
of experience and passion for the stock market. The author
of the book The Stockopoly Plan – Investing for Retirement; published by American-Book Publishing. You can invest in the book at
http://www.pdbookstore.com/comfiles/pages/CharlesMOMelia.shtml
Source: www.isnare.com
