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Agave
Publishers LLC strives to give small investors
investment strategies that work even when the market
is chaotic and when risk levels are normally high.
Dividend stock investing, especially where funds can
be reinvested directly with companies without
brokerage fees, can be a safe and profitable strategy
in both bull and bear markets. It is great for
generating income; it is superb for multiplying the
power of money.
Agave
Publishers offers a strategy that allows the investor
to compound stock investments with boring regularity
and automatic reinvestment of returns. This simple
process can make financial goals become reality. It is
a complete and unique investment tool, designed to
produce above-average returns with maximum protection
of capital.
The strategy can be downloaded for viewing and
printing using PayPal for $19.95 simply by
clicking here. The basic vision and
outline of the investment strategy are outlined below.
THE START OF SOMETHING NEW
Every
year I attend several investment conferences. The most
interesting, in my opinion, is the Money Show
held annually in Las Vegas. This is not your typical
investment conference where a limited number of
investment strategies are promulgated by a few
committed investors. No, the Las Vegas conference is
unique. It’s a crowded potpourri of enthusiastic
speakers with a million views of the global economy.
About 10,000 participants look for ways to invest.
Some may even be interested in saving their money, but
I doubt it. I wonder, sometimes, if the desire for
investing is associated with the itch to gamble.
Like
the city of Las Vegas, the tribal get-together of
investors is colorful, dynamic, and full of good
spirits and belief in the future of this country.
There is plenty of money out there that can be
harvested. The silent signs are saying, “Come fulfill
your ambitions; let’s make some money.”
Most
people attending the Las Vegas Money Show are
eager to tempt fate in order to make money, just as
they are when they put $50 on the Pass Line of the
craps table. Most of the Money Show investors
bet on the bull market just as they would on the Pass
Line of the gaming table. It seems to be in the blood
of American investors to test the limits of a system
and try to become wealthy fast, even though the risk
is high. They are optimistic and believe that they
will always have a chance to score big.
If
you listen to the over-committed investor the strategy
of risk taking, whatever that may be, works. One hears
of the successes, the series of “7s” and “11s”
building skyscraper stacks of chips. But where are the
losers? Doesn’t anyone ever lose? Do you ever read in
investment newsletters that you may lose most of your
money by following their strategies? Does your broker
ever warn you of the consequences of your actions?
Will your financial advisor with a dismal record ever
tell you to go elsewhere? Of course not: it is not in
their interest to play the downbeat.
What
I have learned over the years at the Money Show
in Las Vegas and elsewhere is that the best way to
better your standard of living, even in a recession,
is to build wealth slowly with quality stocks, always
seeking to lower risk by preserving capital . The
analogy with gambling on the tables in Las Vegas is
still valid. There are some games where the odds,
under certain conditions, are in your favor, if you
understand the game, know the odds, play
persistently, resist doubling down after a loss, and
objectively evaluate the risk. If you do those things
then over time you will prosper. Not many gamblers do
this, for their return must include the histrionics of
the wager, but a few players unobtrusively make their
living doing just those things.
Dividend investing in quality stocks, where your money
is constantly compounded through automatic
reinvestments of dividends is one of the few
strategies where risk can be pushed to its lowest
level and where your money can multiply by a factor of
one hundred or more. High yielding dividend stocks can
do that for you, but it takes knowledge, persistence,
constant attention to risk, an eye for value, and a
commitment of about ten percent of your monthly
income. Discipline is the most important key. All in
all, dividend investing is still the easiest and
surest way to fulfill your financial dreams.
High Yield Stock Dividend Strategy: Success in Bull and Bear Markets
may
be your key to ultimate financial success. The system
of investing introduces you to the powerful concepts
you need, and gives you insight into hundreds of
potential stocks that generate dividends. There are
about 13,000 common stocks in the public market place,
but only about 300 have potential for fueling your
investment strategy. You will learn what these stocks
are and why they are considered great investments.
Here are the major qualities to look for in a great
dividend strategy.
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The stocks have
about five million shares outstanding.
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Look for S & P
quality ratings in the “A” category or
Morningstar’s 4 & 5 stars.
-
The stock
companies should have minimum assets of more
than a billion dollars.
-
Shares of stocks
should have at least 10 years of generating
dividends.
-
Dividends should
show at least 10 years of constant increases
in dividends.
-
Volatility should
be low, and price advances should be steady
over the years.
-
The company should
produce products that everyone must have.
-
Institutional
investors should prefer these stocks.
-
The payout ratio
(earning per share divided by dividends paid)
should be less than 50%.
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The price/earnings
ratio should ideally be 19 or less, indicating
high value stocks with low price.
-
And, of course,
the investor should be able to reinvest
dividends without brokerage fees.
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If
you are unclear as to how this approach works,
consider the characteristics of the Procter & Gamble
(PG) stock I recently purchased on a reinvestment
plan. The stock sells for about $67 and has a dividend
yield of 2.40%. The P/E is 19.70. Assets are over 1.38
billion dollars, and the earnings per share for 2007
are $3.22. Procter and Gamble has paid dividends for
57 years, and shows a perfect record of increasing
dividends over those 57 years. Almost everyone is
familiar with their important products, which include
Head & Shoulders, Olay, Crest, Dawn, Downy, Tide,
Bounty, Charmin, Pampers, Folgers, Gillette razors and
blades, and Duracell batteries. What do you think the
chances are that this company will fail or cut or
discontinue dividends? You bet, the chances for
failure are extremely small. This is a company with
superb management and great performance.
So,
how much can you earn on this single stock. With a
$250 up front investment, $200 a month contribution,
and a 3.4% yield reinvested over 20 years the total
return will be $69,950. You will own about 874 shares
of P & G (assuming it reaches $80 per share), and the
dividend yield should on the be about 3.4% on the
average instead of the initial 2.4%. You have saved
approximately $1600 by buying direct and avoiding
brokerage fees (about $7.00 per trade). Your total
out-of-pocket investment is $48,000. Thus, you have
increased your capital by 46%. That’s good, and that’s
conservative.
P & G is off in price about 11% from its 52-week
high, When the stock market recovers from its
downturn an investor can expect a sizable capital
gain, as well as a 2.40% or higher dividend yield.
Indeed, the analysts at Yahoo Finance estimate that P
& G will reach $77.69 during the next year. The price
is relatively unimportant, but it does tell us that we
earn substantial dividends, and can expect higher
dividends in the future. We can enjoy today’s returns
with the expectation that we will also receive
significant capital gains.
Stick
with the most important criteria and the outcome is
almost inevitable. I call the procedure a “force
multiplier,” meaning that you force the outcome to
happen by the force of your choices. The force
multiplier consists of your financial contributions,
the percent yield of the stock, the price appreciation
over time, and the compounding of these factors
through continuous reinvestment. The force multiplier
for dividend investing is your ticket to your goals,
and it doesn’t even hurt. You force the process to
happen. Once in place you occasionally check your
investment and relax.
Let’s assume that you grit your teeth and set up
funds for your retirement by investing a $1000 up
front and a $1000.00 a month for 30 years at 9.30%. In
Chapter 11 of the dividend strategy you will find some
high-yield stocks including Ferrellgas that does have
a 9.30 % yield. Your return on this investment is
$1,905,373.98 over 30 years and $692,956.58 over 20
years. There’s your retirement nest egg right there.
Obviously, it is best to compound your investment for
long periods (start early, go long) and do it with
high dividend yields around 8% to 10%. If you feel
that this is too rich for your budget or the time
frame is longer than you can wait, you can change the
parameters in any way you like. To an extent unusual
for any investment, you can build in the parameters of
your retirement. You may eventually have a dozen of
these reinvestment plans. Remember, your key stocks
will go up in price and the dividend yield will also
increase. And, your risk of capital is minimal. It is
certainly better than relying on social security.
Dividend investing is like planting a tree. You
won’t get a mature tree unless you plant it, so do it
now. And you won’t build wealth unless you start now.
You might as well plan as if you will live forever.
Who cares if you are 60 years of age. When you’re 70
or 75 you can be rich and you and your loved ones can
share in the bounty. As with the tree, unless you get
the seeds growing, there will be nothing there when
you need it.
Kelley Wright, a smart guy (www.igtrends.com),
told a bunch of us at the recent Money Show
that if you invest in value, choose under-priced, but
high-yielding stocks, and compound your returns over
years, you can have the good life. Yes. But the most
surprising thing he said was that if you continue to
invest in quality dividend stocks, it won’t make any
difference what the next Federal administration is
like or what its tax policy may be – you will make so
much money that it won’t matter what the nuts in
Washington do. Kelley, incidentally, supports a family
of six and lives the good life.
Below is the Table of Contents for the stock
dividend strategy. The strategy tells you everything
you need to know and gives you hundreds of dividend
stocks that you can obtain in reinvestment programs.
I hope you will also join those who realize their
personal financial goals through dividend reinvestment
strategies and live the good life. The tools you need
are presented in this program. Good luck. I’ll see
you in Las Vegas.
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