Iit the "apple tree" . I think it's one of the best ways I know to make in the , especially if you don't want to fuss over your every day.
But before I tell you what theis, let me first tell you what it's not...
It's not illegal. It's not confusing. And it's not a get-rich-quick scheme.
When used properly, this loophole can greatly reduce the risk of losing in any .
It all started with a simple saying I heard years ago…
"The best time to plant a tree was 20 years ago. The second-best time is today."
That saying has stuck with me. And if you hadn't noticed, it's talking about amore than planting a couple of apple trees in your backyard and enjoying the fruit later.
The real lesson here is this: It's the moves we make today that deliver the greatest payoff down the road.
And that's the perfect analogy forin consistent, high-quality payers. I firmly believe the high-yield we buy today -- those with steady and increasing payments -- are the ones that end up paying us the most in the long run.
Just imagine if you had bought no more than a handful of the market's top payers just 10 years ago.
- Altria (NYSE: MO) pays 5.2%, has increased the dividend 26% in the past three years, and has returned 617% in the last 10 years thanks to all the dividends paid.
- Realty Income (NYSE: O) brags of being the "Monthly Dividend Company" and returned 335% in ten years, thanks in part to its 4.9% .
- Magellan Midstream Partners (NYSE: MMP) has returned 890%, thanks in part to its 4%-plus and the fact that it has increased payments 233% since 2003.
As you can see, thanks to dividends, each of theseeasily returned over 300% in the past decade. Compare that with the relatively modest 118% return by the S&P 500 in the same period, and the power of dividends becomes apparent.
But the benefits don't stop there. If you were to hold those stocks for a longer period, then the difference would be even more pronounced.
And that's the premise for the loophole. Every time you're paid a money on that position gets smaller. And over time, those steady -- and increasing -- can add up to unlikely returns, even from "boring" companies. Hold your stocks for long enough and eventually you're collecting pure with each payment., the risk of losing
Of course, because it takes a while to make any dent if you're only being paid 2-3% a year, this strategy works best with higher-yielding stocks that pay 4%, 5% or more.
Now, withthere is never a surefire thing. I can't success with the "apple tree" strategy, or any other strategy. But one thing you can't deny is that every dividend you receive makes it that much more likely that you see a winning position.
Action to Take -- > And in a market that's keeping investors up at night, I can't think of a better way to make money without worrying over your investments every day.