Finance Articles

The POWER of a Proven Stock Investment Plan

When you invest in the stock market for ever-increasing cash dividend income, verses trying to make a buck in the stock market, your mindset will change. There will no longer be a fear of losing money in the stock market. With the right type of investment plan and investment choices all worries of losing money in the stock market will disappear.

The mind set that will emerge when you adopt a proven income producing investment plan in the stock market will create an air of worry-free concern about the up and down turmoil of a volatile stock market. Whether your investment portfolio is rising or falling won't make a difference. Your income producing investment plan will prove to continually increase your cash dividend income from all your stock market investments, on a weekly, monthly and yearly basis.

The use of a proven investment plan will allay all fears about investing in the stock market. Why? Because the proven investment plan is based on two very simple and fundamental investment strategies – investing in only those companies that have a historical record of raising their dividend every year, and having the dividends from those companies rolled back into more shares each quarter, until retirement.

By investing in only those companies that raise their dividend every year you will become confident and assured of each stock market investment. And by having the dividends of each company rolled back into more shares each quarter you automatically dollar-cost average into the company's stock throughout the years.

What happens when you invest with this mind set – investing for ever-increasing cash dividend income through companies that raise their dividend every year, rather than trying to make a buck in the stock market?

1. You begin investing in only those companies that have a proven record of rewarding their shareholders every year. Every dividend rolled back into the company's stock every quarter increases the amount of shares owned, and therefore, every dividend from the company will be higher than the previous dividend. After 10 or 15 years, you'll find that that cash dividend begins to add up!

2. The cash dividend income will increase every quarter, no matter what the stock price of the company is at any given time in the market place. As a matter of fact, once you have owned the stock for 10 or 15 years, you'll be torn as to whether you want the stock to go up or to go down, since a lower stock price will allow your dividend reinvestment to purchase more shares, thereby accelerating your cash dividend income.

3. The rising dividend every year will help off-set the risk of inflation. This will be especially helpful when you retire and start having the dividends sent home, rather than having the dividends rolled over into more shares. During the retirement years, when the dividend is being sent home to help ends-meet, the price of the stock doesn't matter. Your income increases every year anyway, because every company owned has a program of raising their dividend every year.

4. After retirement, if your account is worth $250,000 one year and due to a severe drop in the stock market, the net value of your securities drops to $200,000, the net worth of the securities at $200,000 would still generate a higher cash dividend income. The net worth of your holdings means little, if the income produced from your holdings is increasing every year, no matter what the net worth. That is the partial reasoning behind investing in only those companies that raise their dividend every year. The other reason is to eliminate risk in investing in the stock market. A company that has been raising their dividend every year MUST be doing something right or the money wouldn't be there to pay their shareholders ever-increasing cash dividends.

5. The lower the stock price goes, after your initial investment, the higher the dividend yield of the stock. This is extremely powerful and beneficial for you when you are still having the dividends reinvested. Reinvesting those dividends at a lower stock price accelerates your cash dividend income. And if you are in retirement and no longer investing in the stock, the lower stock price does not affect your dividend income at all. The cash dividend income will still increase every year due to the company's program of raising their dividend every year.

As time goes on using this type of investment plan/approach you will discover that by reinvesting those ever-increasing cash dividends, coupled with stock appreciation is a very powerful wealth creating formula!

For more excerpts from the book 'The Stockopoly Plan – Investing for Retirement' visit: www.thestockopolyplan.com

Charles M. O'Melia is an individual investor with almost 40 years of experience and passion for the stock market. The author of the book The Stockopoly Plan – Investing for Retirement, published by American-Book Publishing. The book can be purchased at: http://www.pdbookstore.com/comfiles/pages/CharlesMOMelia.shtml

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

Real Estate: Getting Finance To Purchase Your First Home
If time has arrived for you to start thinking about purchasing a property of your own, you may soon be discouraged due to not knowing how to get the funds to do so. Financing the purchase of real estate is not such a complicated task but you still need to know where you stand and thus, you have to gather some information regarding what financial products can assist you in your undertaking.

Scott Waxler, LockeBridge Managing Partner, Wins "Deal Maker of the Year" at The Investment Banking Industry's 5th Annual M&A Advis
Honoring the Best of the Best in the Investment Banking Industry, the Fifth Annual M&A Advisor Awards Dinner was held Monday night at the New York Athletic Club in Midtown Manhattan. The dinner was sold out as more than 350 middle-market mergers and acquisitions and corporate financing professionals gathered at the New York Athletic Club to toast the top deals and dealmakers of the past year. The gala, black-tie dinner was hosted by The M&A Advisor and Becky Quick, co-anchor of CNBC's morning "Squawk Box" business news show. LockeBridge, LLC and Scott Waxler, Managing Partner of LockeBridge, were nominated as finalists by a prestigious panel of judges in three different categories with Scott Waxler being awarded th...

Refinance Scams - A Few Things To Watch Out For When Refinancing Your Mortgage
Refinancing your mortgage is a big decision, and one that shouldn't be made blindly. Here are a few things to watch out for when refinancing your mortgage.

Refinance Mortgage Loans For Bad Credit Can Solve Your Money Woes
You have been tossing and turning all night. Each time you check your alarm clock, you are amazed at how quickly a minute transforms into an eternity. Your heart starts thumping, you feel dizzy, and that pepperoni pizza you had for dinner sits in your stomach like a boulder. Big events in our lives can cause big stress to develop. A million thoughts rush through our head as we focus on anything that could go wrong. This prevents us from getting a good night's sleep, and then performing at our optimum potential the next day. In dealing with any problems, such as when we need to refinance mortgage loans for bad credit, the best approach is always to find the best solution to the problem.

Being Irrational with Investments Nets Irrational Returns -- Long-Time Financial Advisor Unlocks the Secrets of Behavioral Finance to Help Investors M
The stock market may display volatile mood swings, just like people. But it's irrational investor behavior that really undermines things. Long-time financial planner Louis Morizio of The Center for Financial Planning offers tips that will lead to investing success.

Katz Mortgage Team Now Offers New FHA Loans With Higher loan limits and 100% financing
Katz Mortgage Team, www.KatzMortgageTeam.net, of Amtrust Mortgage Corporation, has announced they are now offering new FHA loans. These home loans have been updated with new higher loan limits up to $544,000 depending on the county; however, most metropolitan counties have a limit between $200,000 and $300,000. Also, with down payment assistance, they can now offer 100% financing.

FreeRateSearch.com is First Website to Provide Consumers Mortgage Rate Quotes: Fast, Anonymous and Free
FreeRateSearch.com announces the launch of the first website that allows consumers to anonymously search multiple mortgage loan programs and compare the best rates available for their specific loan requests.

Local 30-Year Financial Executive Introduces Mortgage Liberator, a New Product to Benefit Central Illinois Homeowners
Industry veteran introduces Mortgage Liberator, a product and services combination that assists homeowners in paying off their mortgages early without a change in lifestyle. Mortgage Liberator uses proprietary software and interest calculations developed to coach homeowners in optimum use of short term home equity. It can be applied to both residential and commercial debt.

Mortgage Protection Insurance Cover Is Not Suitable For All Individuals, So Make Sure It Is Right For You
Mortgage protection insurance cover can work in the way it is supposed to, but only if it is suitable for your circumstances. The only way you can be absolutely sure that the policy suits your situation is if you take care to read the terms and conditions. Some individuals cannot read the terms and conditions simply because they are not offered them and so do not know they exist. This is due to poor selling techniques being used at the time of selling, either because high street lenders want to push the cover alongside the loan or those selling cover have no training in selling.

The Path To Success in Stock Market Investment
Sometimes, very simple questions can teach you life?s biggest lessons. Moreover, set you on the right path.

Slow Housing Market Has Little Effect on Investment Choices for Self-Directed Investors: Guidant Survey Shows Real Estate is Still the Most Popular Ch
Guidant Financial Group, a leading provider of self-directed IRA services, recently conducted a survey that provided valuable data on self-directed investment trends. Results gave insight into which investments are getting the most traction in this niche market, given the current economic situation.

Three Barriers to Solving the Mortgage Crisis
In late 2006 the economy was showing indicators that pointed to a looming mortgage crisis that would ultimately disrupt the flow of business in the secondary market?Investors, who are essential to the flow of money, basically ignored the warning signs but began trading more cautiously

Things to Do Once Your Mortgage is Paid Off
Once your mortgage is paid off it's time to celebrate! Some people really do throw a party to celebrate paying off their mortgage. It's been such a long haul but they finally did it, and now they really own their own home.

California Bad Credit Mortgage
California is a beautiful place to live There is no doubt about that. But, to live in California you must pay the price, which is sky high real estate prices.