This event is one of the simplest, yet most often misunderstood ways for investors to beat the market. It can be tough to determine when or if this event will happen. But when it does, more often than not, investors make out like bandits. #-ad_banner-#I’m talking about spinoffs, which can happen for a variety of reasons… Sometimes they are done to trim the loose parts of a company after a major acquisition in order to satisfy anti-trust requirements. Other times, spinoffs are undertaken to resolve friction or conflicts of interest between… Read More

This event is one of the simplest, yet most often misunderstood ways for investors to beat the market. It can be tough to determine when or if this event will happen. But when it does, more often than not, investors make out like bandits. #-ad_banner-#I’m talking about spinoffs, which can happen for a variety of reasons… Sometimes they are done to trim the loose parts of a company after a major acquisition in order to satisfy anti-trust requirements. Other times, spinoffs are undertaken to resolve friction or conflicts of interest between a subsidiary and parent. Smaller subsidiaries or business units often lose out on the full recognition that they deserve only because they get overshadowed by the parent company. Once they are spun off, the market can truly appreciate their value. Some spinoffs need time to develop before they can fire on all cylinders, but once they do, history has proven that these new firms tend to outperform the market. Consider this: Both Marathon Petroleum (NYSE: MPC) and Huntington Ingalls (NYSE: HII) plodded along for a year or two… Read More

What do you consider when looking to purchase a new dividend-paying security? If you’re like most income investors, you probably search out its yield or investigate whether it can maintain its dividend. #-ad_banner-#These are important criteria, but there’s another trait that many investors overlook that is just as important: dividend frequency. On one hand, I understand why it’s often overlooked. After all, if a security pays an annual dividend of $1.20 per share, what difference does it make if it pays $1.20 per share once a year or $0.10 per share… Read More

What do you consider when looking to purchase a new dividend-paying security? If you’re like most income investors, you probably search out its yield or investigate whether it can maintain its dividend. #-ad_banner-#These are important criteria, but there’s another trait that many investors overlook that is just as important: dividend frequency. On one hand, I understand why it’s often overlooked. After all, if a security pays an annual dividend of $1.20 per share, what difference does it make if it pays $1.20 per share once a year or $0.10 per share 12 times a year? All else being equal, however, a more frequent dividend payer is better than a less frequent dividend payer… especially if you are reinvesting your dividends. Earn More Income The fact is if you reinvest your dividends as I do, you will ultimately make more money with a monthly dividend payer than an annual dividend payer. To see what I mean, take a look at the chart below. It contrasts the growth of $100,000 invested in securities yielding 7%. One security makes monthly distributions while the other… Read More

If you’re a regular reader of StreetAuthority, you know I love getting and reinvesting dividend paychecks. Simply put, my goal is to earn a paycheck every day of the month by owning a basket of solid income securities, then grow the size of those paychecks by harnessing the power of compounding through dividend reinvestment. So far, the results have been very rewarding. From an initial $200,000 investment, I’m earning $18,613 in dividends a year (more than $1,551 a month) using this strategy. And that doesn’t even include a penny from the healthy capital gains I’ve made from… Read More

If you’re a regular reader of StreetAuthority, you know I love getting and reinvesting dividend paychecks. Simply put, my goal is to earn a paycheck every day of the month by owning a basket of solid income securities, then grow the size of those paychecks by harnessing the power of compounding through dividend reinvestment. So far, the results have been very rewarding. From an initial $200,000 investment, I’m earning $18,613 in dividends a year (more than $1,551 a month) using this strategy. And that doesn’t even include a penny from the healthy capital gains I’ve made from most of my holdings. But as I said, you may have already heard this before. My goal today is to show you how to get the most out of your income investments using a simple, yet effective, three-part strategy. I like to think of it as a dividend “trifecta,” and it’s the cornerstone of my Daily Paycheck Retirement Strategy. The great thing about this trifecta is that it’s fully customizable to your own needs. You can use it to multiply your wealth over time, preserve capital, even bring in a second income to fund… Read More

For those that don’t know, in addition to being the Chief Strategist behind StreetAuthority’s Stock of the Month newsletter, I’m also an avid poker player. I first picked up poker about a decade ago, well before it was all over television. But I wasn’t after the big jackpot like most of the people who’ve taken up the game. I simply thought poker could make me a better investor. Poker has a lot in common with investing — and no, I’m not talking about luck. In poker, you get only one move at a time. Read More

For those that don’t know, in addition to being the Chief Strategist behind StreetAuthority’s Stock of the Month newsletter, I’m also an avid poker player. I first picked up poker about a decade ago, well before it was all over television. But I wasn’t after the big jackpot like most of the people who’ve taken up the game. I simply thought poker could make me a better investor. Poker has a lot in common with investing — and no, I’m not talking about luck. In poker, you get only one move at a time. You don’t get the luxury of making your moves in a vacuum or without consideration for the dynamics other players bring to the game. It also takes patience and foresight to win consistently. And sometimes, it’s not about winning, but simply knowing when to cut your losses. When put in those terms, it’s easy to see how playing poker can make you a better investor. #-ad_banner-#It’s easy to spot an inexperienced player at a poker table. He’ll be the guy who plays nearly every hand. He’s probably grown up watching televised poker, where folded… Read More

I understand why people love good high-yielding securities. If you’re after a large income stream, then you hardly need me to explain the benefit of this elite group of stocks. As my longtime readers know, higher yielding securities make up roughly a third of my Daily Paycheck portfolio. I wouldn’t be able to collect more than $1551 every month without them. But when it comes to high-yielders, there’s one thing that many dividend-seekers don’t realize. And in the long run, this simple oversight could be costing you thousands… Read More

I understand why people love good high-yielding securities. If you’re after a large income stream, then you hardly need me to explain the benefit of this elite group of stocks. As my longtime readers know, higher yielding securities make up roughly a third of my Daily Paycheck portfolio. I wouldn’t be able to collect more than $1551 every month without them. But when it comes to high-yielders, there’s one thing that many dividend-seekers don’t realize. And in the long run, this simple oversight could be costing you thousands of dollars every year. #-ad_banner-#One of the things I often hear from income investors is, “I only invest in securities with more than X% yield.” Usually the “X” is 8% or higher. Here’s what many income-seeking investors forget: higher yield generally equates to higher risk. To commit your whole portfolio to high-yield assets — especially if you’re nearing retirement — may not be worth it. There’s a better, safer way to dramatically boost your income. Don’t Overlook Growth For Yield With a few years time, you… Read More

As long-time readers may know, back in December 2009 I began an ambitious experiment. My mission: take $200,000 of StreetAuthority’s money and invest it in a stable, growing portfolio of dividend-paying securities. I would take the dividends I earn from these investments, reinvest them, and then build my portfolio into a robust income-generating machine. We built an entire newsletter advisory around this experiment. And during this time, I’m happy to report that I’ve been able to grow my portfolio value to more than $320,000. And depending on the needs of my Daily Paycheck subscribers,… Read More

As long-time readers may know, back in December 2009 I began an ambitious experiment. My mission: take $200,000 of StreetAuthority’s money and invest it in a stable, growing portfolio of dividend-paying securities. I would take the dividends I earn from these investments, reinvest them, and then build my portfolio into a robust income-generating machine. We built an entire newsletter advisory around this experiment. And during this time, I’m happy to report that I’ve been able to grow my portfolio value to more than $320,000. And depending on the needs of my Daily Paycheck subscribers, they can “flip the switch” from dividend reinvestment and live off of their income stream at any time. But let’s face it, not everyone gets $200,000 thrown in their laps. Take Matthew Michaels, for example. #-ad_banner-#Matt is a young father who works at StreetAuthority. He doesn’t have thousands of dollars to invest at the moment. But even so, he and his wife recently began using the Daily Paycheck strategy to build a portfolio for their two young daughters’ future. That’s the beauty of my strategy: anyone can take… Read More