It's the most lucrative investing strategy I've ever found. It won't happen overnight, but I'm convinced anyone can earn a significant amount of money with this strategy.
Let me explain...
Consider your typical income portfolio. It holds a position in a few dividend payers and maybe a fund or two. You get paid occasional dividends, that's for sure. But because you only hold a few positions that pay quarterly dividends, the income you receive is inconsistent.
That's where my Daily Paycheck strategy is different. (If you're a regular reader of StreetAuthority, then you know I've shared the details of my Daily Paycheck Retirement Plan before.)
The goal: To build a high and steady stream of income. Using the plan, my followers and I are creating a portfolio that can pay us more than 30 dividend checks a month. At the same time, I'm generating an average yield of 5.3%... and that's when interest rates -- which fuel the yields on most "normal" income investments -- have been at their lowest in history.
There's a major caveat, though. And it's one that will cause most investors to never take the first step to start their own Daily Paycheck portfolio. Most investors don't have the most important characteristic that allows you to earn the greatest amount of wealth with this strategy: patience.
Take a $10,000 investment. In a portfolio like mine that earns an average yield of 5.3%, that amount would earn $530 in dividend income during the year. I wouldn't sneeze at $530, but it's just a fraction of what you could earn if you simply let your portfolio pay you year after year.
The table below shows exactly what I mean. It shows how much you'd earn... if you have patience. As you can see, even modest amounts can generate substantial dividends.
|1 Month||1 Year||5 Years||10 Years|
Your $10,000 investment would earn a staggering $5,300 in dividends in a decade. And that amount is before any capital gains and ignores any dividend increases.
I want to make something clear... this isn't a "get-rich-quick" scheme. It's simple math. You aren't going to invest a few thousand dollars and be buying expensive sports cars or going on exotic vacations anytime soon. This doesn't work overnight.
But I think that's part of what makes this style of investing so powerful... You don't have to be an investing genius to use this strategy. Anyone can do it. All it takes is discipline.
The key is finding stocks that will pay you consistent dividends... and having the patience to let them grow your wealth over the long-term.
But this is just the tip of the iceberg. Truth be told, there's a way to turbocharge the math here -- and it's what my subscribers do each month over at my premium newsletter, The Daily Paycheck. We've been building our own model portfolio for years, earning more than $106,000 in total dividends so far. And after starting out with $200,000 portfolio, we've managed to grow our portfolio to a total value of $348,789 at last count. To learn more about how you can do the same, see my latest report here.
In the meantime, I'm happy to share with you some of my favorite recommendations from The Daily Paycheck. Until now, only my paid subscribers have seen these picks…
-- A monthly dividend payer, the Tekla Healthcare Opportunities Fund (NYSE: THQ) is a relatively young closed-end fund with a juicy 7.7% current yield. The fund holds a collection of biotechs -- such as Celgene (Nasdaq: CELG) and Gilead (Nasdaq: GILD) -- large pharmaceuticals -- such as Abbot Labs (NYSE: ABT) and Merck (NYSE: MRK) -- and other health care companies, such as UnitedHealth Group (NYSE: UNH). Best of all, it's selling at a better than 7% discount to its net asset value (NAV) despite delivering a better than 14% total return over the past 12 months.
-- One of Warren Buffett's favorites (the famed investor holds 15.6% of all the shares outstanding), Phillips 66 (NYSE: PSX) is also an incredible dividend payer, having grown its dividends from $0.20 per share five years ago to the current $0.63 per share. This works out to a current yield of 3.2% -- and I also expect more dividend increases as the year progresses.
-- Verizon's (NYSE: VZ) 5% yield is one of the strongest among S&P 500 companies. And this communications giant generates enough business to ensure its dividend is covered.
These are the types of returns we want every StreetAuthority reader to experience, which is why we're offering a special deal for new Daily Paycheck subscribers. For a limited time you'll be able to join us for only $99 for a full year as our way of saying "thanks" for your loyal readership. Don't miss out on this special offer!
This article originally appeared on StreetAuthority.