|
Over the past few days we've been telling you
about a revolutionary income strategy that can help you collect
$2,000... $3,000... even $5,000 or more a month in dividend checks.
In the following report, you'll discover the details of this proven
strategy and see how you can start using it for your own
portfolio...
32 Dividend
Checks a Month
How to Turn
Your Portfolio
into a Daily Income Machine
|
"These aren't
insignificant little $2 and $3 checks -- these are $50... $60...
even $300 checks that can pay for your groceries, your gas, your
fine dining, your weekend at the spa, your holiday shopping...
your country club dues... or even more shares..."
|
If you're tired of that uneasy feeling you've got in the pit of your stomach
-- worrying about the direction of the stock market, the economy, the U.S.
dollar, and inflation...
Or if you're nervous about having enough cash left in your nest
egg after this recession (and perhaps the next) to take care of your family and retire the way retirement
ought to be -- comfortable, secure, and carefree...
Then please read on,
because this could be the solution you've been looking for...
Dear Investor,
The recent bear market just wiped out 13 years of capital gains.
In March 2009 -- as the S&P 500 hit its lowest level since 1996 -- millions
of investors around the world sat in shock -- numb, as they witnessed their
portfolios deteriorate in synch with the general market.
Maybe you were among them.
Teachers, lawyers, farmers, accountants, business owners, realtors, retirees, you
name it. Hardly anyone who owned stocks didn't feel the pain.
But somewhere in the outskirts of Austin, Texas...
one investor was able to avoid the worst of the turmoil.
That's because -- in the depths of the worst stock market of our lifetimes
-- this man's portfolio was quietly churning out "paycheck" after "paycheck"
-- providing him with a steady stream of income and a healthy dose of confidence,
comfort, and optimism amidst the economic panic.
He was concluding a 24-month long "real money" case study with a
new investing strategy -- one that focuses on safety and security, but that
also offers a steady flow of cash to your bank account -- nearly every
single day.
It's proven to be an overwhelming success...
This man has collected 281 dividend
checks worth a total of $21,491.71 since January 1st -- the
equivalent of getting a $65.72 paycheck every single day this year.
His name is Paul Tracy, and he is StreetAuthority's Co-Founder and Chief Investment
Strategist. The revolutionary income strategy he's discovered can turn
your portfolio into a daily income machine -- offering you either
stable cash flow through practically any market blowup or huge $1,200-plus
"paydays" on other occasions -- just like it has for him.
For example, last year -- while the S&P 500 lost -38% of its value -- Paul
was busy cashing 180 dividend checks... a new check nearly every other day,
totaling $13,118 in dividend payments alone in 2008.
This year, as he kicked his unique dividend strategy into full gear, Paul's already collected
281 of these "paychecks" -- totaling over $20,000. That works out to be a $65.72 dividend check
each day.
And he swears that you can get
this kind of income stream too, if you simply follow his new "daily paycheck" strategy.
Imagine how your life would change almost immediately once you start
collecting an extra $2,000... $3,000... even $5,000 a month...
 |
You can take the family on a
surprise vacation to the Caribbean... every
month |
|
|
You can treat your friends to
some fancy dining... every week |
|
|
...or you can simply reinvest your
checks to grow your income even more |
Yes, all of this is possible once you
discover how to transform your portfolio into a daily income machine -- just
like Paul Tracy has with his personal portfolio.
In the remaining portion of this report you'll discover the inner-workings
behind Paul's revolutionary "daily paycheck" strategy... you'll see real examples from Paul's
personal portfolio... and you'll have clear direction on how you too can
start collecting paychecks that total up to $2,000... $3,000...
even $5,000 or more a month -- all on autopilot!
Blueprint For Getting
32 Dividend Checks a Month
Before we dive into the details of Paul's overwhelmingly successful "daily paycheck" strategy, take a
look at the
dividends he collected just last month by using this new strategy in his personal portfolio.
This gives you an idea of what kind of checks you could squeeze out of your own portfolio if you simply follow Paul's proven strategy...
Remember, year-to-date, Paul's average
daily paycheck is $65.72. But last month alone he averaged $87.35 a day!
This jump illustrates the awesome power of reinvesting your dividends -- you
can literally watch your income stream grow each and every month.
And these aren't insignificant little $2 and $3 checks -- these are $50...
$60... even $300 checks that can pay for your groceries, your gas, your fine
dining, your weekend at the spa, your holiday shopping... your country club dues...
or even more shares.
Keep in mind, we're only talking about dividends here... not cash from capital
gains, which -- if you take into consideration -- are impressive in their own
right:
Several of Paul's holdings are up a total of +54%... +69%... +78%... +99%... even
+108% and higher in the last 24 months.
But he's not selling -- instead, he's leveraging the dividends to buy
more shares, which is quickly leading to even larger paychecks.
For example, back in September 2008 -- while Paul was still tweaking his new
investing strategy -- he collected 15 dividend checks for a total of
$513.44... and he put every cent back into more shares.
That's why one month later, in October, he collected 17 dividend checks for a total of $985.88
-- which he also reinvested.
Then, for the remaining two months of 2008, he averaged 19 paychecks --
for an average payout of $1,778.26 a month.
With each month that passes, this "daily paycheck" strategy
can pay you larger and larger dividends!
To look at it another way, consider how much your income can grow on a
year-over-year basis...
Over the entire 12 months of 2008, Paul "only" collected 180 dividend checks --
with each check averaging $35.53.
Instead of spending his dividends, he reinvested them, helping him earn even
bigger paychecks this year: So far he's already collected 281 checks this
year, averaging $76.48 each.
And this is just the beginning.
Paul's goal is to collect $10,000 a month from dividends only. That
sounds a little ridiculous, but as you'll see in a moment, it's entirely possible
-- thanks to his "daily paycheck" strategy:
"By following Paul's eight 'no-brainer' dividend investing rules... and then
reinvesting those earned dividends... you're able to get a more frequent income
stream that grows larger and larger each month."
He swears that your income stream can become more frequent and grow larger by the
month, too -- just like his.
And the best part is, you can start with a portfolio of ANY size.
Just follow the same
eight "no-brainer" rules that Paul does... and within weeks your
nest egg
could transform into a daily income machine that dishes out up
to 30 or more checks a month.
|
|
"Forget chasing
growth stocks. Invest in dividend payers." |
|
It's a rule that should be etched into the granite
walls of the NYSE: Never underestimate the power of the lowly dividend.
Although little respected and often ignored, more than
137 years of data point to the inescapable conclusion that owning
humdrum dividend-paying stocks... and then reinvesting those
dividends... beats all other investment approaches hands down. So if
dividend-paying stocks make you yawn, it's time to wake up and smell the
cash.
In the go-go high-tech boom 10 years ago income
investors were laughed at as fuddy duddies.
Guess who's laughing now? Dividend-paying stocks are so
far ahead of the non-payers that it's not even funny.
Over the past 10 years NYSE-listed stocks that pay
dividends are up +7.7% a year. Meanwhile, those that don't pay dividends eked out
gains of just +1.7%.
That comes to a huge difference in total return: +96.7% vs. +18.4%.
Don't be surprised. Since 1926 dividends have
contributed 42% of the total return delivered by the markets. This makes
a massive difference over the long haul. Underestimating the awesome
edge income-paying securities give you is the biggest mistake you can
make in your investing life.
In fact, the odds are so heavily stacked in their favor
that income investors almost always come out ahead.
In the 100-yard dash to wealth, income investors start
on the 50-yardline. What's more, every time the stock market corrects,
growth investors are forced to run backwards for 10 yards. How can they
win?
This jump-start is precisely why Paul Tracy has spent the last two years developing his
strategy to get even more (and larger) dividend payments from his portfolio.
|
|
"It's tempting to
take the cash... but it's more profitable to reinvest it." |
|
When you start collecting $60... $70...
$80... even $300 dividend checks on a daily basis, your first instinct will
be to cash them.
But unless you really need to, don't.
Dividends are one of the most powerful wealth-building tools
in an investor's arsenal because of the phenomenon of compounding.
By reinvesting your dividend checks (instead of cashing them), you can buy more shares,
which leads to even larger dividend checks.
These larger checks can then be used to buy even more shares and so on. In
time, even a small stake in such stocks can grow into a tidy sum.
(Reinvesting your dividends is a cinch. In fact, many dividend payers do it
automatically -- and if they don't, just give your broker a call and he'll take
care of it for you in a matter of seconds.)
Look what happens to a $10,000 investment earning a 10% annual yield and
generating an +8% capital gain each year over three decades.
 As
you can see, steady compounding yields amazing results over the long haul.
If you cashed all your dividend checks you'd end up with $222,972.
But if you reinvested them, your initial $10,000 investment swells into
more than $1.7 million -- without ever adding another penny.
At the end of the 30-year period, you'll be collecting annual dividend payments in excess of
$170,000.
In other words, your annual dividend
income alone would amount to more than 17 times your $10,000
outlay!
This is precisely why Paul Tracy calls reinvesting your dividends a
"no-brainer" -- and why this investing style is the foundation for his new
"daily paycheck" strategy.
One of Paul's personal holdings -- AllianceBernstein Global High income
Fund (NYSE: AWF) -- is up +78% this year. What's remarkable is
that by reinvesting his checks -- instead of cashing them -- his total AWF
share count has jumped by almost 10% in just 10 months!
It doesn't take a genius to see how quickly your income stream can grow when
you invest this way.
|
|
"If you've got a
choice between a 5% yield
and a 10% yield, take the higher yield." |
|
One of the easiest ways to increase your
income stream is to invest in high-yielding securities.
All else equal, higher yields will pay you more.
This rule is such a "no-brainer" that it doesn't require further explanation. Clearly, higher yields put more
cash in your pocket....
|
Portfolio
Size |
Annual
Cash Dividends at 5% Yield |
Annual
Cash Dividends at 10% Yield |
|
|
$1,000 |
$50 |
$100 |
|
$10,000 |
$500 |
$1,000 |
|
$100,000 |
$5,000 |
$10,000 |
Just a word of caution:
One of the biggest mistakes income investors make is to flip open their copy of
The Wall Street Journal and only buy the securities with the highest yields.
Although ultra-high-yielding securities paying 20% or more are tempting,
keep in mind that common stocks don't guarantee yields or payouts. At any time, a
company's board of directors can decide to cut its dividend distributions or eliminate them
entirely.
So if you want to separate the high-yield gems from the high-yield junk
you need to look for a few traits of strong dividend payers. These include
payout ratios below 80%, a strong history of payments, and strong cash
positions.
Fortunately, there are still plenty of companies that meet this criteria AND
pay out hefty double-digit yields.
These are exactly the kinds of securities you'll want in your portfolio if
you want to collect monthly dividend checks of $2,000... $3,000... even
$5,000 or more.
|
|
"Small-caps beat
large-caps.
So invest in the small guys." |
|
It's only common sense that a small
company with $10 million in earnings can double or triple that figure much
easier and faster than a corporate giant with $10 billion in earnings.
And history agrees...
Over a recent 33-year period, small-cap stocks outperformed
their large-cap counterparts, averaging +14.8% annual gains vs. +10.8%
annual gains.
Over the long haul, that difference can add up to a substantial amount of
money -- money that you can either spend or reinvest to grow your income
stream even more.
|
Long-term Growth
of Investing in Small-Caps vs. Large-Caps |
|
Growth
of $10,000 |
10
Years |
20
Years |
30
Years |
40
Years |
|
Large-Cap (+10.8%/yr) |
$27,886 |
$77,766 |
$216,866 |
$604,770 |
|
Small-Cap (+14.8%/yr) |
$39,757 |
$158,065 |
$628,429 |
$2,498,477 |
|
That's why, if given the choice, Paul Tracy prefers to skew his portfolio toward
promising small-caps... especially high-yielding ones, like Main
Street Capital (Nasdaq: MAIN),
which yields 10.7%, makes monthly payments, and has gained +38% so far this year.
He says, "These firms are like tiny acorns that will one day
become towering oaks. But not surprisingly, most income-seeking investors spend little
time hunting for acorns and prefer their stocks to be
full-grown. Unfortunately, they're missing out on a lot of cash."
|
|
"Look overseas for
higher income." |
|
It's a cash-flow desert here in America for anyone who needs to bank
an income off their portfolio.
The average U.S. stock pays just
2.5%. (We now have the stingiest stock market in the world, apart
from Japan's.)
|
Dividend Yields of Major Stock Indices
The average dividend yield of the S&P 500
today is just 2.5%. That's peanuts compared to yields in
other developed nations...
| Australia |
4.6% |
| Brazil |
3.6% |
| Czech Republic |
7.1% |
| France |
4.0% |
| Germany |
3.8% |
| Hong Kong |
3.0% |
| Italy |
3.7% |
| New Zealand |
5.7% |
| Portugal |
3.8% |
| South Africa |
3.0% |
| Spain |
5.0% |
| Sweden |
3.1% |
| Taiwan |
3.2% |
| U.K. |
3.9% |
| U.S. |
2.5% |
|
While you can find the occasional high-yielding stock,
odds are that anything paying above say, 15%, is a basket case. In
fact, once you weed out the money losers,
only 10 stocks in the entire United States pay more than 15%.
Just 10 lonely survivors. But guess what? Expand your
horizon a bit and it's a completely different story.
Right now, there are actually 100 profitable companies
yielding more than 15% -- they just don't happen to be in the U.S.
10 here versus 100 abroad -- where do you think the
best hunting ground is for a yield-hungry investor?
90% of the jaw-dropping yields these days are abroad. Meanwhile, the dollar is weakening, boosting the value of those
dividends month after month.
And not only are the yields higher overseas, but foreign
markets are growing much faster than the U.S.
Why keep your money in U.S. stocks paying 2.5% in a flat
economy... when you can buy stocks yielding up to 15% or
more in countries that are growing
+5%, +6% and +7% a year?
One of Paul Tracy's favorite foreign plays
has already
appreciated +55% since January -- more than triple the S&P
500's +25.2% gain in the same time period.
If you want to start collecting total dividends in excess of
$2,000... $3,000... even $5,000 a month, skew your portfolio
toward fast-growing foreign dividend-payers.
|
|
"Choose
fast-growing foreign markets
over developed markets." |
|
To say foreign markets are on fire is an understatement.
The
benchmark MSCI Emerging Markets Index is up +64.1% year to date
-- more than double the S&P 500's +25.2%
And that +64.1% is an average. Individual emerging markets have
topped those gains, like
Peru, which is up +125% in dollar terms... Russia, up +123%... Indonesia, up +119%...
India, up +94%... and Brazil, up +139% in dollar terms.
These markets are also among the fastest growing economies on
the planet. The IMF says emerging markets will account for all the
growth in the global economy this year and most of the growth in
2010 as well.
To Paul Tracy, investing in high-yielders in emerging markets is a "no-brainer".
That's why he likes to load his "daily paycheck" portfolio with
promising emerging markets plays like First Trust/Aberdeen Emerging
Opportunity Fund (NYSE: FEO).
Investments like this one not
only get you rip-roaring growth from China, India, Brazil, and
Indonesia -- all of which have outperformed during the global
slowdown -- but also get you steady quarterly dividend checks
from its 8.5%-plus yields.
|
|
"It's not what you
earn, it's what you keep. Avoid taxes, legally." |
|
Most of us consider ourselves patriotic citizens.
But that doesn't mean we have to pay Uncle Sam any more than his fair share of our investment income.
Unfortunately, when building income-oriented portfolios, many investors get blinded by
high yields on fully-taxable investments without stopping to consider how much cash will be left over after the government takes its cut.
Although tax-advantaged securities typically offer lower yields, in many
cases they will put more cash in your pocket at the end of the day. This is particularly true for investors in higher tax brackets.
For example, if you're in the 35% tax bracket -- a tax-free investment
paying 7% has a taxable equivalent yield of 10.8%. And a tax-free company
paying 10%, has a taxable equivalent yield of 15.4%.
These are precisely the types of tax-advantaged situations that Paul
Tracy says you should look for when you're transforming your portfolio into
a daily income machine.
|
|
"Load your portfolio
with monthly payers." |
|
A key aspect of the Victorian definition of a gentleman was someone able to
generate enough income to live on from their existing fortune without eating
into their seed capital.
Back then it was called "living off your four percents" -- which
referred to
government bonds that paid around four percent.
Today, Paul's coined a new phrase for this lifestyle. He calls it "living off your monthlies."
That's because a critical component of Paul's new "daily paycheck" strategy calls for
skewing your investments toward companies that pay regularly monthly
dividends.
The idea is to load your portfolio with enough of these monthly payers so
that you get paid nearly every single day of the month... or more.
When you make the choice to invest in a stock that pays a monthly dividend,
you'll probably be surprised when your first check shows up soon.
And you'll be surprised the next month, too, when another check arrives.
After the third month, you'll be spoiled -- you'll find it's easy to grow
accustomed to this lucrative new source of passive income. Especially when
you load your portfolio with monthly payers and you start getting these
checks nearly every day.
And it's not just more convenient to be paid this often, you actually earn
more that way. Thanks to the compounding phenomenon we talked about earlier, a stock paying out 1% monthly doesn't have a yield of 12%, but actually
12.68% -- a big difference over time.
Plus, many of the best stocks offer extremely stable -- and growing --
income. Several of the monthly payers we've profiled in our StreetAuthority income
advisories like High-Yield Investing and High-Yield International
have seen their dividends surge up to +130% over the past few years.
This combination of convenience, stability, and growing payouts make monthly
dividend-payers an absolute "no-brainer" for your new "daily paycheck"
portfolio.
Next Step: Transform YOUR Portfolio Into a
"Daily Income
Machine" That Pays You Up To
30 Dividend Checks a Month or More
By following these eight "no-brainer"
rules, Paul Tracy has transformed his portfolio into an
income-generating machine... one
that spit out the equivalent of an $87.35
dividend check a day last month.
In the report above, we revealed the inner-workings of his "daily paycheck"
strategy. Today, he won't buy a stock unless he thinks it will help
him toward his goal of $10,000 a month in dividends.
Now it's YOUR chance to transform your own portfolio into a daily income
machine -- just like Paul has...
At StreetAuthority, we're always looking for new ways to help our
readers make more money. And because of the overwhelming success that Paul
Tracy has had with his real-money case study, we've
decided to offer a brand new service -- based entirely on his proven "daily
paycheck" concept.
You've already seen how profitable this strategy has been for Paul -- now
it's time to transform your own portfolio into an income machine that dishes
out $2,000... $3,000... even $5,000 or more in dividends every month.
Over the past several weeks Paul has been working closely with
StreetAuthority's top investment analysts
and research staff to develop this
brand new income service --
The Daily Paycheck.
The Daily Paycheck will be the ONLY income investing service on the
planet dedicated to giving you the optimal combination of dividend-payers
that can get you up to 30 (or more) dividend checks a month.
To get all the details on this brand new service -- including an exclusive
inaugural discount available for a very limited time only --
click right here.
-Lou Betancourt, Publisher
Next Step: Click Here
|
|