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The Single Most Important Element About Stock Investing
… is making sure you get paid.
When you buy shares in a company, you want to make money.
However, there is no guarantee that the shares will rise in price. Indeed, if you are investing simply because you believe prices will rise, you are essentially betting that someone else will want to pay more for your shares at a later date.
No matter how much research you perform, there is no guarantee this will happen.
Dividends, however, DO make sure you make money. Because the company is actually paying you to own shares. And this makes a heck of a difference.
If you had invested $1 in stocks in 1950 and held onto your position until 2010, you would have made EIGHT TIMES more money through dividends than share appreciation.
Let me restate that: by receiving and reinvesting dividends you’d make 800% more money than without them between 1950 and 2010.
The difference is even more incredible if you go back further.
Historically dividends have accounted for 70% of all stock market gains.
According to a study performed by the London Business School, when you remove dividends, stocks have returned a mere 1.7% in average annual gains over the last 109 years. To put this into perspective, this is less than you’d make from owning long-term US Treasury bonds (2.1%) over the same time period.
Indeed, if you’d invested $1 in stocks in 1900 and reinvested your dividends, by 2009, you’d have made $582 (adjusted for inflation). Take out dividends and you’d have only seen $6 from price appreciation. Yes, $6 from 109 years’ worth of capital gains.
Put another way, by focusing solely on capital gains when it comes to stock investing you’re only doubling your money about every 18 years (remember, this analysis simply focuses on the returns generated by the market… which outperforms most professional and individual investors).
So unless you’re buying stocks with dividends, you’re likely not making diddly in the long-term.
Again, if you’re going to buy stocks… make sure you get PAID. And there’s no better way to do this than with dividends.
For a FREE Special Report outlining how to protect your portfolio from this, swing by: http://phoenixcapitalmarketing.com/special-reports.html
Best Regards
Phoenix Capital Research
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" Indeed, if you’d invested $1 in stocks in 1900 and reinvested your dividends, by 2009, you’d have made $582 "
Indeed, if you'd invested $1 in stocks in 1900, you would have been dead for quite sometime now.
Sure, dividends > bonds > stock appreciation, however, better than all of that is to invest in your own business where you have control, and can influence the outcome.
And of course, if you buddy up to Obama, your business can get funneled millions even if you couldn't make a buck on your own.
with Tesla up this much in one day there is no way i'm investing in any mining company ever again.
I love you phoenix, pls get more bullish on markets, then they can at last crash!
Ya, and when you fuck a hooker you should wear a condom. Then re-invest in more hookers and condoms. Am I catching on?
Wow! So I should reinvest all the dividends, and make the real money. Just let it all tumble in.
Oh wait a minute, do I need to pay taxes on those dividends?
Also, is there any chance that the buying power of my US Dollars, in which all these terrific gains are measured, is perhaps decreasing over time? What's that called? Oh yeah inflation.
In addition, is there any chance that all these zeros and ones can simply be stolen out of my account? But if that did happen, the guy who did it would be arrested, right?
Fuck that. I am out. No more fake zeros and ones. No corzine. No inflation. No secret paper issuance for the insiders. Fuck that. Take your Corzine and your Iron Condors and stick it.
this is the real signal to get out of the market, frn, etc. somethings going down, probably in the next 4 weeks.
Compare this to the typical "free report" junk from this guy. Is this a type of capitulation? For two years, he has told us that the end of the world is upon us and to take appropriate measures to protect ourselves. Now, he is suddenly pitching dividend stocks? Hmmmmmm... This has got to be some kind of contrarian signal.
That's exactly what the fed wants everyone to do. Lose hope of downturn and switch over to long. Then guess what!! Hugh Hendry anyone?
Investing for dividends has not yielded greater returns than just investing in the S&P 500 over most any timeframes. Investing in dividends payers only just ensures that you have to pay some taxes every year, regardless if you made money or not. The truth is it is hard to have any kind of diversified stock portfolio without there being some dividend payers in it.
The story to learn here is that you need to reinvest any money that gets paid out rather than spend it. If you spend all our dividends, your long term return will suck. rather than investing dividends back into the same company or fund, I like to use the collective dividends to reallocate the portfolio back into balance.
Graham, after 4 years of reading/following these, I have about $4250 left in my ameritrade account. (used to be 200k) Advice?
Buy very long dated puts way out of the money on NFLX, FB, TWTR and wait. If you are lucky and the black swan comes before the options expiration, you may even make a profit on your 200k. If the extend and pretend lasts longer, you lost your last 2.125% of your capital. Not a big deal.
Man1: Ask me what is the the single most important element about (Stock Investing) telling a joke.
Man2: What's the single most important element about -
Man1: Timing!
Ha
New norm: But.. But.. I want it all and I want it now.