Stocks That Pay Dividends: How to Invest

 Stocks That Pay Dividends: How to Invest

In a recent press release, I was interviewed using a question-and-answer format centered around finance. During the interview, I was asked to predict the direction of the stock market for the next five years.

My Response!

Author: Charles M. O'Melia We do not know! If one could predict what is going to happen three days in advance, they would be wealthy for millennia, according to an old Chinese saying. From a long-term perspective, all I have seen is growth and improvement. That, in my opinion, is fundamental to the American economy and way of life. The stock market follows the economy, and I do not see any reason to change my mind on that.

Who would have guessed that GE's expansion in China would bring in $5 billion? Companies based in the United States that trade on the New York Stock Exchange stand to gain from the expansion of businesses worldwide. Plus, one need not own any foreign funds or companies in order to make a profit.

The future of the market has never worried me—not until that question. I do not care about tomorrow, not even about five years from now. Not even a little! I never considered it. I simply am not worried enough about the direction the markets are taking, whether it is a bear market, a bull market, or a flat market.

It becomes moot when you have a portfolio full of dividend-paying companies, a method for consistently adding to your portfolio through quarterly dividend reinvestments, a straightforward savings plan, and an eye for buying opportunities to add even more shares to your portfolio each quarter. With each new stock purchase, I am adding to my share portfolio.

Every now and then I get a fantastic deal on one of my businesses, and other times I spend too much. No matter which one I choose—the cheap one or the pricey one—my income from those companies keeps going up.

Despite two dividend increases in that time, a stock's dividend yield can fall to below 3% after one year or two, even though the stock's price has increased by 5.15 percent. The stock price, for instance, might have jumped from $30 to $60 as a result of this. In my experience, a stock split and dividend raise are common responses from companies whose stock prices have risen to a point where the dividend yield falls below 1%.

At the moment, it appears that the DOW is struggling to break beyond the 11,000 mark. Also, I can not help but think back a very long time ago at the moment.

The DOW barrier was 1,000 for those of you who were not around in the late '60s and early '70s.

The DOW 1,000 level was a real challenge, I remember. A thought crossed my mind: this time it will really break it. The initial attempt occurred in 1966 (with a rise to 985) and continued for the subsequent six years in an effort to surpass 1,000. It dropped sharply after breaking 1,000 (around 1,050 or thereabouts in 1972). The Dow did not break 1,100 for another decade. At 985, it will take six years for the DOW to break 1,000. Breaking 1,100 will take another 10 years. It took sixteen years for the DOW to rise by just eleventy-five points.

Is today's 11,000 DOW barrier comparable to the 1100 DOW barrier of yesteryear? Would the DOW's 11,000 level become a 16-year ceiling? Might be! Alternatively, perhaps not! I am confused! "Those who are able to predict the future, etc."

While that is happening, I intend to keep seeing the exponential growth of my dividend income.

For the whole financial interview, you can find the link here:

The stock-poly-plan website



As long as you include the author bylines and a live link and do not edit the content in any way, you have permission to use this piece electronically or in print. Kindly inform charles@thestockopolyplan.com about the article's publication by sending an email. Seven hundred and sixty words

Wow, that is cool!

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