Got some investing money you’d like to double? As in, grow it by 100% or more? Here’s the surest and safest way to do it quickly.
Well, before we get into getting rich, let’s talk about income. Not everyone needs to grow their pile of money bigger and bigger. Some of us are done accumulating and are looking for cash flow to help us cruise through retirement.
So, we have two options:
Option 1: Invest for Income Today
Put some of the cash pile into safe funds and stocks. I can show you where to find 7.52% yields, which means you can build a “no withdrawal” retirement portfolio that spins off $75,214.44 on a million bucks:
12 Month Projected Income for CIR Portfolio
Source: Income Calendar
Of course, few blue-chip stocks pay over 2%. So popular payouts won’t get it done. Fortunately, you’re talking to one of the guys who wrote the book on retiring on dividends! Our Contrarian Income Report portfolio pays 7.52% today-it’s doable to find these types of yields if you know where to look.
Option 2: Double Your Money Every Few Years (Also with Dividends)
Our strategy here is similar to our first one, except we are prioritizing tomorrow’s dividends over today’s. So, it is the trajectory of our payouts that is most important.
Why? Because stock prices tend to rise as fast as their dividends.
For example, PepsiCo (PEP) has made its investors rich thanks to its ability to grow its dividend. Check out the purple staircase below-that’s the payout that PepsiCo hikes every year. Its stock price (orange line below) is attracted to the payout curve like a magnet. Here’s their relationship ever since the beverage maker began paying a dividend:
Every Pepsi Payout Refreshes the World
And we can see that over the last ten years, its 107% payout growth has almost-perfectly predicted its 108% price gains:
For the Love of It(s Dividend)
PepsiCo’s payout growth has slowed in recent years as it’s filled the market for sugar water and salty chips. Sub-10% annual dividend growth does not get it done for true dividend growth investors like us!
PepsiCo’s best years of payout growth are behind it. Same goes for many other Dividend Aristocrats, the stocks that have hiked their dividends for 25 or more consecutive years. They are treated like royalty, so their valuations are always high and their current yields are rather low. And it doesn’t make sense to reward past accomplishments since the stock market is a forward–looking vehicle.
Which is why my Hidden Yields advisory focuses on stocks that are raising their payouts well more than average. I’m talking about 10%+ dividend increases year-over-year!
But, What About a Recession?
Our timely buys are a key ingredient in our secret sauce. And constant recession worries help us out.
Let’s rewind to April, when every contrarian indicator told us that stocks were ready to rally. While individual investors worried that a 6% decline would snowball into a 20%+ crash, we saw “dumb money” sentiment at extreme lows and smartly added dividend grower Amgen (AMGN) to our Hidden Yields portfolio on April 19.
Amgen may not be a classic dividend stock per se, but over a long time frame, its price follows its payout higher like a devoted puppy dog. (Or an adolescent dog with the ability to focus more!) About a month ago, you and I considered the purple price line below, which wanders and then catches up with the dividend staircase:
Amgen’s Always-Rising Payout (and Hence, Price)
The two ingredients created quite the cocktail–a quick 18% pop in Amgen’s price. And a congratulations to those of you who are sitting on these gains, which annualize to a terrific 204%.
“Brett, What’s the Best Way to Increase Wealth Long-Term?”
Several subscribers have written recently asking which dividend strategy is the best to increase their wealth over the long haul. That’s easy. It’s Hidden Yields and its 9.1%+ yearly returns.
At this rate, we’re doubling our money about every eight years (thank you, Rule of 72!). We’re doing it simply and safely, by buying the stocks that are increasing their dividends the fastest. And we’re buying without worrying about the bear market boogeyman that unravels most investors.
Remember, for us, pullbacks are buying opportunities. April sure was! Our secret was that we didn’t panic. We held onto our elite dividend growers and used the opportunity to buy Amgen.
5 Dividend Stocks Ready to Return 200% Annualized Gains
Don’t regret not buying these five dividend growers when we revisit these picks months from now! All are poised for fast 200% annualized gains just like Amgen.
I use computers, screens, tools and my own head to uncover dividend growers that will easily pay us a steady 9%+ per year. That’s enough to double our money in just under 8 years.
Imagine, turning a retirement ‘pot’ of $250,000 into $500,000… or… $500,000 into $1,000,000… and on it goes.
Please click here for more on my five favorite dividend stocks with 100%+ upside. I’ll share their names, tickers and my full research with you including my recommended buy-up-to prices in a newly updated private report.
Also see:
Warren Buffett Dividend Stocks
Dividend Growth Stocks: 25 Aristocrats
Future Dividend Aristocrats: Close Contenders
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.