Investing for income is difficult today and probably going
to get a lot tougher over the next three years…
Wall Street will throw all kinds of crazy ideas at you that
will allegedly raise your income level.
These products will raise someone's income level, but I
suspect it will not be yours.
Millions of Americans will be looking for income as rates
stay lower longer than anyone had thought possible.
In a recent press conference, U.S. Federal Reserve Chair Jerome
Powell has said that rates will remain low until at least 2023, if not longer.
Inevitably, income-producing assets will be become bid up to
excessive valuations.
Income investing will be difficult and frustrating beyond
belief for most investors.
But there is hope…
If you take the simple rules that I'll teach you today, you
will not be among the frustrated.
Instead, you will be a successful, happy income investor who
sees a steady flow of income into your account and your money increasing faster
than inflation over time.
All you have to do is look for companies where insiders own
20% of the company and the dividend is at least 6%.
Own a diverse portfolio of high yielding companies with high
levels of insider ownership, and your results will be just fine.
Sure, it may not be as exciting as the latest and greatest
product shoved down your throat by Wall Street, but this approach has two
significant advantages…
First of all, it just works. And second, it's cheap, if not
free, to execute depending on which broker you use.
You will own boring stocks most of the time. But your
dividends will arrive every quarter with a high probability of increasing over
time.
The people running these companies have the same goals you
do as an investor. They want to generate income that can grow over time and for
their money to escape the ravages of inflation.
That's why they set the dividend high to start with and why
they will keep the payout growing… Continue reading …
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