Since 2008, investing has become an extreme sport. If you are looking for growth; you’ll have to ride the stock market the same way you ride a bull. You may lose your shirt during the first day of the next techno IPO (Facebook anyone?), but if you are gutsy enough, you’ll end-up making money. However, you’ll also have to endure several market slumps to achieve it.
On the other hand, if you quit on the markets, you’ll also have to quit on your investment returns too. Certificates of deposit and bond interest will barely pay for your Kraft Dinner for the month. You can’t live on a portfolio that doesn’t even beat inflation.
Tell Me, What Are You Going To Do With Your Money?
Since 2010, I’ve decided to concentrate my investments in dividend paying stocks.Why? Simply because dividend stocks suffer less in a bearish stock market while earning a lot more than bonds and CDs. In other words Dividend investing is the route to build a powerful growth portfolio.
Why Dividend Investing?
I have 3 simple reasons:
- #1 Dividend Investing is Powerful – More on that in a second, but did you know that it’s probably your best option to beat the market?
- #2 Dividend Investing is Perfect for Busy People – You have a demanding job and want to spend time with family and friends, do you know that you don’t need to spend hours in front of your computer to build a rock solid portfolio?
- #3 Dividend Investing is Like Getting Paid Monthly To Manage Your Portfolio! – Doesn’t this sound like the perfect pension plan to you?
Dividend Stocks Beat the Market!
I just told you that dividend investing is powerful. How powerful is it? Well…for the past 85 years, dividend stocks have contributed 43% of the total S&P500 annualized returns.
Image source: JP Morgan Asset Management
In other words, your chances of beating the market with a dividend portfolio is way better than with another investing strategy. The dividend yield by itself is enough to beat inflation. You are already ahead of any low interest yielding bonds. Dividend stocks are also less volatile – this means that you avoid headaches during recessions. Doesn’t this sound like a good retirement investment for you? No more mandatory Kraft Dinner meals!
Dividend Investing- To Save Time & Make Money
At the beginning of 2012, we pulled two 100% stock portfolios; one US and one Canadian. our first portfolios showed total investment returns of 12.37% (US) and 14.69% (CDN). We did it again in 2013. As of November 1st 2013, our portfolios are showing total investment returns of 31.78% (US) and 17.82%. Be careful, these returns are solid but it doesn’t mean it’s easy to replicate them.
Since we don’t want you to throw yourself into the melee of dividend investing alone, we have created Dividend Stocks Rock. This unique investing tool has been created to support your quest to financial freedom through dividend investing. Based on proven investing concepts, we offer a choice of 10 dividend portfolios and 8 dividend stock lists. These two tools are the perfect foundation of a sound investing process. You can start by following our trades and additions to our stock lists before making your own trading decisions.
Is Dividend Investing for You?
If you want to eliminate management fees, avoid getting overwhelmed by trading and want to earn a constant stream of income all the while beating inflation;
Then, I think that dividend investing is a great starting point to manage your portfolio by yourself.