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I teach others how to become financially independent by creating their own dividend machine.Being able to have your annual dividend income MORE than pay your annual living expenses is how I define it. This book teaches you how to save money WITHOUT changing your lifestyle ,just the price you pay... More
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  • Build your dividend machine before its too late

    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


     

    Tags: MO
    Apr 11 8:05 PM | Link | 1 Comment
  • Greatest Time to Buy Stocks

    If you look at 3 past"recessions" you can see why its better to buy stocks now. In 1973 Pes were high and interest rates on T bills were double digits

     

    In 1981 T Bill Rates approached 15%

     

    In 2000 after the tech bubble Pes on JNJ Ko MSFT WMT and others were over 40

     

    Now we have low interest rates and once smart money finishes with corporate bonds and drives their yields down to normal rates BLue chip stocks with low PES will be REVISITED and start a bull market

    Apr 11 7:59 PM | Link | Comment!
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