by Carla Pasternak
It's the most consistent way I know to beat the market.
Even better, there is rarely a bad time to start investing in these securities. You could have put your money into these stocks at the peak of the tech bubble, or the October 2007 market peak for that matter. Dozens of them are showing a triple-digit profit since then.
I don't want to make it seem you can't lose money with these unique investments. You certainly can, especially if you aren't patient. But there's no doubt the odds are in favor of making money, not losing it.
So what are these "magic" investments that have worked so well over the years... despite some of the worst financial turmoil we've ever seen?
They're simple. They are "boring" dividend payers that are able to maintain -- and raise -- their dividends no matter what.
They're among the most lucrative ways I've found to make money. Take a look:
Senior Housing Properties owns independent and assisted-living facilities that cater to seniors. It owns roughly 300 housing sites across the country.
The REIT began paying dividends in 2000 and has raised them steadily since then, a few pennies at a time. There has never been a dividend cut, even during the recent recession. That's helped lead to some amazing returns of more than 350% in the past 10 years.
It's the same story with other dividend payers who pay high yields and are dedicated to steady -- and increasing -- payments:
Magellan Midstream Partners (NYSE: MMP) paid quarterly dividends of just $0.28 10 years ago. Today it pays nearly triple that amount. Meanwhile, investors gained more than 600% during that time.
Now, make no mistake, the returns I've shown here are special. Not every dividend payer, even if they raise payments, will return hundreds of percent. Some could lose money.
I've been tracking income investments for years and I can tell you when you combine a high-yielding stock (5% or more) with consistent dividend growth, it's one of the best recipes for big winners.