The Best Way to Invest in Dividend-Yielding Stocks

I recently received an e-mail from a reader in his fifties who plans to retire in four years. He told me he’s just getting started in investing and wanted some ideas for “rapid growth.” Yikes! Hopefully, he’s got a large 401(k), a pension, or an inheritance. Four years isn’t enough time to get your finances ready for retirement if you’re starting from scratch. While I like a good speculation as much as anyone, the reader’s approach flies in the face of how to make serious money in the markets. In fact, at the annual Investment U Conference in St. Petersburg, Florida this week, I’ll be giving a presentation on this very topic. And right off the bat, I can tell you one thing … The Dividends Statistics Speak for Themselves If you’re investing in stocks for the long term, the best thing you can do is buy stable companies with a track record of increasing their dividends, and then reinvest those dividends. Sure, they may only be 3% or 4% dividends, but you’ll be shocked at the way they can create significant wealth. I’ll show you exactly what I mean in just a moment, but first, check out these eye-popping statistics on reinvested dividends:... Read more

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