Finance Articles

A Stock Market Investment Plan that Never Lets You Down

The bulls and bears of the stock market are both tempting and scary to the investors. Speculators are enchanted by the stock market's potential to help them in making quick money with a big M. While those who tread with care and caution, often shy away for fear of losing. However, the stock market is not all about speculative gains or black Tuesdays. It is a place where committed companies look for raising money to fund their activities. Serious investors can actually create wealth not only for themselves, but also for the companies and the nation. A wise way to invest in the stock market is to empower your self with information. You have to know and learn about the company you invest in, from past records and future plans.

Irrespective of what the Wall Street Gurus predict or what the economic indicators like Dow Jones Average say, a simple and foolproof way of knowing that a company is doing well is to keep a track of how much dividend income does it pay to its share holders every year. If the dividend rates have been rising steadily every year, you know you have a safe bet. To benefit from the future prospects of such companies, it is a good idea to rollback the returns into the company. Which means, instead of adding the dividends to your savings, you can invest them in the shares of the same company. That way, you can ensure that the dividends you receive are always higher than what you got last, with a larger number of shares getting added to your investment portfolio every time.

With this kind of an assured investment plan in place, investors with a gambling streak begin to think beyond making a quick gain. While those who were afraid to take risks get wiser.

Let us find out why companies that give ever-increasing cash dividend income are a good choice for investment:

Your Share Holding Goes Up And So does Your Dividend Income.

Your income begins to escalate with your owning more shares every year and the dividend income rising correspondingly.

Your Dividend Income Increases Even If Stock Prices don't.

You are no more at the mercy of the market. Irrespective of what your shares are worth, you keep earning additional cash dividends. In fact, even if the market price dips, you are still at an advantage, as that allows you to reinvest to purchase more shares.

You are not hit by Inflation.

With the dividend income rising every year, you offset the effects of a rising inflation. This particularly provides relief to people who have retired and depend on a regular cash inflow to help them meet their expenses. At this stage one need not rollback the investment into further shares, instead, the cash dividend can be used as a kind of regular pension money.

Start Young

The ingenuity behind this investment strategy is that it protects you from the fluctuations that generally occur in the market. A lower stock market rate only means you buy more to increase your dividends more. It is advisable to start this strategy early in life while you are still working, so that your wealth builds up gradually and constantly over the years. And you are assured of a regular income, as you grow older.

Remember, the success of this proven investment plan depends significantly on the track record of the company you invest in. It should be one that declares a higher dividend at the end of each financial period. A simple way to find that out would be to calculate the dividend yield. You can do that by dividing the annual dividend per share by the price per share. Of course, no investment can be totally free of risks, neither is this one. Keep an eye on the dividend yield, and if that dips, it's a signal for you to opt out of the investment.

James Marriott is a finance writer with more than 15 years of experience in writing financial content, including those related to credit cards, mortgages, stocks, investments, and funds. He has been with RNCOS, a premier financial writing services company, for 2 years as head of financial writing. He is also a regular financial columnist with renowned business journals. For your comments on the article and further financial assistance, please contact our staff writer at info@rncos.com.

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

Cap And Collar Rate Mortgage
A capped rate mortgage has an interest rate that cannot rise above a pre-determined level for a specified period of time. After the capped rate period expires, the interest rate of the mortgage reverts to the lender?s Standard Variable Rate (SVR).

4 Simple Tests To Find Good Real Estate Investment Properties
You're driving along the road when you spot it. There in the middle of a shaggy lawn sits a disheveled property.

Online Mortgage Directory Partners with Large Tax Debt Relief firm
LendingGateway.com becomes marketing partner for tax firm JK Harris.

Potential Homeowners Avoid Mortgage Loan Fraud with LoanPage.com Glossary Tool
The Words of the Week glossary tool at home loan resource site LoanPage.com offers a list of mortgage terms that can help consumers understand the mortgage loan process and avoid mortgage loan fraud.

Mortgage Shopping: Six Questions You Need To Ask
Obtaining a new mortgage has become increasingly difficult in recent months. Whether you're trying to purchase a new property or refinance your existing home, loan requirements have become stricter in the face of declining home values, falling buyer demand, and financial market concerns.

Inventory Accounting
Inventory Accounting

Home Mortgage Loan Myths You Should Stop Believing In
There are a number of home mortgage loan myths that hinder people from getting the mortgage that can actually solve your financial problems. Here are some mortgage myths you have to let go of.

Lucky 7 Best Investment Markets Forecast in 2008
The Lucky 7 Best investment housing markets in 2008 are composed of markets scattered throughout the U.S., which have the highest probability of return for investors of increasing the most during 2008.

There's More to Marketing ROI (return on investment) Than Meets the Eye
All too often people look at marketing ROI in terms of response rate: in other words, "I sent out 10,000 pieces of direct mail and only got 39 responses which is terrible." This is wrong think.

In-Q-Tel Completes Strategic Investment and Technology Advancement Agreement With Forterra Systems to Accelerate Collaborative Virtual World Solutions
Forterra Systems, the market and technology leader in private virtual worlds, today announced a strategic investment and technology advancement agreement with In-Q-Tel, the independent strategic investment firm that identifies innovative technology solutions to support the mission of the broader U.S. Intelligence Community.

Spectrasensors, Inc. Announces Completion of $14M C Round Investment
The $14M C-round of a funding was led by Nomura's New Energy & Clean Technology Ventures.

Accounting Career Opportunities for You
Each year, hundred thousands of colleges and universities produce graduates of different degrees and courses. As the number of newly graduates increase each year, so is the number of unemployed individuals. By choosing your college course thoroughly, you can have better career opportunities in the near future.

Special Investment Advisory Update as Metanor Resources is Cleared for Gold Production
With the issuance of permits now for their Batchelor Lake gold milling facility, it is clear sailing to commence production. Now is the time to pay attention to MTO.V shares as the current valuation should make upward adjustments to reflect forward discounted future revenues of Metanor as a gold producer with a solid expandable resource base in a mining friendly region. Mining MarketWatch Journal Special Advisory Update of Metanor Resources Inc.

Real Estate Mortgage Loans Online
Online real estate mortgage loans enable borrowers to be sure they are getting the best financing rates. By comparing online quotes, you can save time and money with no risk.