Why is it so important to develop your own dividend machine? This multiple part article should help you come to the realization that few investors do until it is too late: The importance of building your own dividend machine
A 25 year old whose portfolio is only thirty thousand dollars, can buy a stock like Altria today with a dividend of about 8.5% .You will find out in the next installment why Altria is ideal for starting your own personal dividend machine.The twenty seven hundred dollars of annual dividends should double about every 9 years at least. With no further investment this particular dividend machine should return over eighty six thousand dollars annually at age seventy. Sound impressive? By reinvesting dividends the first fifteen years this amount should be well over two hundred thousand dollars annually at age seventy.How many of your friends do you think will have done that? Not bad for a one time investment.See the importance of a dividend machine now?
What happens if you don't have the thirty thousand dollars to get started ?Borrowing the money from a loved one or relative is a great alternative.Many parents grandparents and loved ones loan money to a child for an automobile or school which may or may not have a future tangible value. Giving your loved one their "inheritence" early may create a permanent dividend machine that can be transferred for many generations to come
Wharton School of Business professor Jeremy Siegel said that about 97% of the gain of the Dow since 1900 has been from reinvested dividends . Only 3% wwas caused by capital gains. Yet Mmany"gamblers" ,disguised as value investors ,have lost hundreds of thousands of dollars, investing in financials like AIG ,Bear Stearns and others. Their mistake is concentrating ONLY on capital gains and not dividends. In the next installment a step by step blueprint will help you to explain how to build your own personal dividend machine
After each article there will be some business links that I would like feedback with
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Great article!
ReplyDeleteGood to see you blogging billy. Blogging is a great tool and IMO serves better for your detailed writeups than message boards.
Looking forward for your next write up. May I suggest if you can include PM in your analysis too (just being selfish coz I've greater position in PM). PM dividiend is nothing to scoff at either.
Cheers
Cheers
Welcome to the blogosphere, BillyT. Are you still running your forum as well? It was the subject of a series of posts on GuruFocus a while back.
ReplyDeleteIn fact Iam still running the forum but am tired of trying to"motivate" others to participate. The forum members will decide by their actions its future.Apparently some posters were upset that my popular character"Short Jester" was actually me predicting trades.A former moderator "jealous" because his "million dollar Investment" lost 93% decided after knowing and laughing about it for 9 months suddenly developed a "conscience" and "spilled the beans". He also decided o say my trades were"phony" which was publicly disputed by those who "piggybacked" them and falsely claimed I got margin calls and then was not "man" enough to bet me 100K to back his "supposed" facts.My"mock portfolio" which is all dated http://www.atfreeforum.com/billyticketswin/viewtopic.php?t=289&start=240&mforum=billyticketswin has a dated record of my 2008 "ideas"
ReplyDeleteIam new here please feel free to offer up any suggestions and post your blog link on here.
Thanks for the shout out.peace