Or, you could pay your car payment, take a trip to visit the grandkids or go on a long overdue vacation. It's possible thanks to the income generating power of options. And best of all, options are actually much safer than you've been led to believe - if you know what less than 1 in 4 investors know about using options to generate income. For a proven way to increase income in retirement, click here.
$7,200 in Dividends From a $10,000 Investment
It's the most lucrative investing strategy I've ever found. It won't happen overnight, but I'm convinced anyone can earn a significant amount of money with this strategy.
Let me explain...
Over the past few weeks, I've shared the details of my "Daily Paycheck" strategy (you can read those issues here, here, and here).
Consider your typical income portfolio. It holds a position in a few dividend payers and maybe a fund or two. You get paid occasional dividends, that's for sure. But because you only hold a few positions that pay quarterly dividends, the income you receive is inconsistent.
That's where my "Daily Paycheck" strategy is different. The goal is to build a high and steady stream of income. And as I've told you before, I want to build a portfolio that pays a dividend for every day of the year.
So right now, I'm earning more than 30 dividend checks a month from my portfolio. At the same time, I'm generating an average yield of 7.2%... and that's when interest rates -- which fuel the yields on most "normal" income investments -- are their lowest in history.
There's a major caveat, though. And it's one that will cause most investors to never take the first step to start their own "Daily Paycheck" portfolio. Most investors don't have the most important characteristic that allows you earn the greatest wealth via this strategy -- patience.
Take a $10,000 investment. In a portfolio like mine that earns an average yield of 7.2%, that amount would earn $720 in dividend income during the year. I wouldn't sneeze at $720, but it's just a fraction of what you could earn if you simply let your portfolio pay you year after year.
The table below shows exactly what I mean. It shows how much you'd earn... if you have patience. As you can see, even modest amounts can generate substantial dividends.
Your $10,000 investment would earn a staggering $7,200 in dividends in a decade. And that amount is before any capital gains and ignores any dividend increases.
How Much Can You Earn? Simply Look For Your Portfolio Size
*Numbers based on 7.2% average yield (the current average yield of my portfolio). All investing carries risk and no results are guaranteed. The figures above will also be subject to taxes and commissions.
I want to make something clear... this isn't a "get-rich-quick" scheme. You aren't going to invest a few thousand dollars and be buying expensive sports cars or going on exotic vacations.
But I think that's part of what makes this style of investing so powerful...
See, if you want to become wealthy in the stock market, it's probably not going to happen overnight. (Just ask early investors in Facebook (Nasdaq: FB)) ... they're already down 26% on their original investment -- and the stock has only been trading for a week.)
The key is finding stocks that will pay you consistent dividends... and having the patience to let them grow your wealth over the long-term.
Truth be told, there's a lot more to share about my "Daily Paycheck" strategy. I've been building my own portfolio for more than two years, earning more than $28,000 in total dividends so far. To learn more about how you can do the same -- without having to watch a video -- you can read my presentation here.
Always searching for your next paycheck,
Chief Investment Strategist -- The Daily Paycheck
Disclosure: Amy Calistri does not own shares of the securities mentioned in this article. In accordance with company policies, StreetAuthority always provides readers with at least 48 hours advance notice before buying or selling any securities in any "real money" model portfolio. Members of our staff are restricted from buying or selling any securities for two weeks after being featured in our advisories or on our website, as monitored by our compliance officer.
Lowe's Companies Inc. (NYSE: LOW), the popular home improvement store, just announced it was increasing its quarterly dividend 14% to $0.16 a share. Based on today's closing price, the company will offer a 2.3% dividend yield.
-- Research Staff
10 Best Retirement Income Stocks Now
Some pay quarterly. Others pay monthly. All offer you a safer, more stable, and reliable source of high income even if the market goes down.
I recently told Dividend Opportunities readers about this high-yielding sector, and now I want to tell you about one security in that sector that just hit a 5-year high and has the potential to keep growing.
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