The Proven Wealth Booster That Most Overlook
- Kelly Green
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- October 26, 2022
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- Comments
Note from Publisher Ed D’Agostino:
Dear Reader:
Today, we’re pleased to introduce you to a new, free weekly research note, Mauldin Economics Dividend Digest.
Each week on Wednesday, Yield Shark editor Kelly Green will share her dividend investing insight with you. From high current-income dividend stocks to timeless dividend aristocrats, Kelly will show you how to collect more income from your portfolio.
To manage your email preferences, just click here.
Now here’s Kelly with her debut issue...
Ed D’Agostino
Publisher, Mauldin Economics
The Proven Wealth Booster That Most Overlook
Do you know the only thing that gives me pleasure? It’s to see my dividends coming in. —John D Rockefeller
Even the richest American ever enjoyed ripping open an envelope to find a big fat dividend check.
In the age of the internet and commission-free trading, it’s easier than ever to collect payouts from solid dividend companies. Simply click to buy, and your dividends are automatically deposited into your brokerage account quarter after quarter.
John Rockefeller, Warren Buffett, and Benjamin Graham (revered as the father of value investing) are just a few of the mega-successful investors who attribute building long-term wealth to dividends.
You don’t have to be a savvy businessman or the heir to an oil fortune to leverage the incredible power of dividends. All you need is patience… and know which stocks to own.
Dividends Are More Powerful Than You Think
Dividends are not the latest hip and trendy investment idea.
Investors have been programmed that the stock market is all about making a quick buck and stalking the next big score.
In reality, the majority of money in the market is not made from the latest cryptocurrency or startup company.
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For over 60 years, dividends have been the boring secret to amassing long-haul wealth.
Source: Hartford Funds
Study after study shows that owning dividend payers—and, more importantly, those that grow their dividend—will dramatically boost your total return over time.
Frankly, many dividend payers are big, established, solid… and boring companies.
Toilet paper, printing, and pickles aren’t the kind of products that make for splashy media headlines. But the companies that make them can pay you 4.1%, 6.7%, and even 12% dividend yields.
Invest… Don’t Speculate
Don’t forget that when you buy a stock, you’re buying a small slice of ownership in a business.
Too many investors get lost in “hot stock” speculation and big share price moves. And they don’t know anything about the business behind the ticker.
On any given day, a stock’s share price is a number arbitrarily assigned by the market. Value is something altogether different.
So don’t confuse price with value.
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“Price is what you pay. Value is what you get.”—Warren Buffett, legendary investor
Companies that pay dividends are creating long-term value for their shareholders.
And long-term value is the secret to building your wealth.
Why would you buy a business that doesn’t pay you any money?
That’s the difference between speculating on the share price and investing in a company.
I’m not saying you shouldn’t invest in a company that doesn’t pay a dividend. That would make me a hypocrite.
I am saying there’s a difference between the two. And adding dividend stocks to your portfolio can help you make a lot more money over your investing lifetime.
Learning from History
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But still, dividend investing is seen as boring… best suited for retirees.
History says otherwise.
Dividend payers that grow their dividends as their businesses grow:
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Have higher returns over time
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Tend to have less volatility
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Have more disciplined management teams.
No matter what stage of life you’re in, you can use dividends to raise your income and your wealth over a lifetime.
When I started looking at dividend investing over 12 years ago, I was instantly hooked.
I have since devoted my time and made a career out of discovering some of the best income-generating investments in the market.
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America’s richest man ever could have bought anything he wanted. What he valued most were his stock dividends.
Dividends are a powerful tool. And during times of volatility and economic uncertainty like today, it’s a tool you must use. You must make your money work for you.
That’s why I’ve launched Mauldin Economics Dividend Digest, a free weekly e-letter that covers the world of dividend investing.
For years, my research has been available only to a select group of subscribers.
Now, in these pages, I’ll deliver weekly content to help you along your dividend journey.
We’ll cover all the dividend concepts you need to know and cut through the noise you’ll see in the mainstream financial media.
Like what you're reading?
Get this free newsletter in your inbox every Wednesday! Read our privacy policy here.
You can always reach out to me at subscribers@mauldineconomics.com if you have specific questions or topics you’d like me to cover.
For more income, now and in the future,
Kelly Green
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