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Safer Investing With 'Dividend Income Plus'
By: Marc Courtenay   Thursday, November 20, 2008 11:55 PM

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Dividend income from cashed up, profitable, low debt publicly-traded companies makes more sense today then ever. This is especially true of companies that pride themselves on raising their dividends each year by at least 5% per year.

There are ways to own dividend-paying stocks and while you are earning income from these stocks you are generating other forms of "income". There are strategies that make owning stocks and collecting dividends even more profitable.
 
Louis Basenese, the Associate Investment Director of The Oxford Club  has a new service I hear he is calling The Income Tripler
that has my attention because it focuses on the investment strategies I've always called "Dividend Income Plus".  Here's how Lou explains it:
 
Like I said, I'm all about keeping income high and risk low.

And this strategy is like safety built upon safety. Think about it...

If you're collecting 10% dividends and you receive an instant "bank wire" for 15% of what your stock is worth, you're up 25% right out of the gate. Shares would have to dive 25% before you break even!

Plus, as you've already seen, the current market is creating the perfect conditions to start collecting "sucker money." But here's the thing...

There's also never been a better time to invest in dividend-paying stocks.

For years, dividends were the overlooked stepchild of Wall Street. Investors were blinded by growth stocks. They watched Google's meteoric rise from $85 to $475... and believed they could pay for their retirement with just one big winner.

Needless to say, in almost every case, it didn't work. Why?

Because while they were busy trying to find the next Google (and losing), "boring" dividend-paying stocks were making some patient investors very rich...

Over the past 35 years, non-dividend-paying stocks have gained an average annual return of 2.5%. That's less than T-bills.

But dividend-paying stocks have averaged an annual return between 8.9% and 10.9%.

Take a look at the chart below, courtesy of Ned Davis Research...

That's a huge difference. Look at it this way...

If your portfolio consisted exclusively of non-dividend-paying stocks (so called "growth" and penny stocks), an investment of $100,000 in 1972 would be worth $240,000 today. That's not horrible. But it's certainly not great.

If your portfolio had only dividend paying stocks in it, your $100,000 would be worth $2,150,000 today. Now that's worth talking about. But let's take it one step further...

If you invested in a portfolio of dividend growers (the type of stocks you'll find through The Income Tripler), your $10,000 would be worth $4,059,000 today. Over $4 million. For retirees or people near retirement, you've hit the jackpot.

And keep in mind... these are the stocks to own when the markets get crazy. The growing dividend payers held steady during the last bear market of 2000 to 2003. They didn't lose money.

It's no wonder investors are starting to pile back into dividend-paying stocks now. And they've got the right idea. [in the past Lou has like dividend payers like Altria (NYSE:MO) Microsoft (Nasdaq:MSFT) and Kinder Morgan Energy Partners (NYSE:KMP), all of which pay a dividend yield between 3 and 9% per yeear]

But they're missing the full picture...[in other words, it's not just about collecting rich, quarterly dividend payments]

Your "One-Two Punch"...
Dividends + Sucker Money =
Supercharged Income Stream

Why collect only four payments each year? Why not six... seven... eight? With my simple income strategy, you can.

Let's take a close look at Altria. I'm not recommending this stock now, but it is a long-time favorite of dividend investors. So it'll make a great example. The company is a cash-generating machine, raising dividends 40 times in the past 38 years. It's currently paying a healthy 6.7% dividend yield.

Let's say you picked up 1,000 shares of the company. Based on current payouts, you'd collect a nice $320 check every quarter from dividends. But of course, we plan on making even more income than just regular dividends...

By performing a very simple transaction, you could make an instant $680. And then you can collect the next quarterly dividend... and make another transaction... another dividend... another transaction. You get the picture. Here's what it could look like after a year:

"Wire" Transaction #1 $680
Q1 Dividend $320
"Wire" Transaction #2 $760
Q2 Dividend $320
Wire Transaction #3 $530
Q3 Dividend $320
"Wire" Transaction #4 $680
Q4 Dividend $320

= $3,930

By combining the power of these two investment strategies, you could have been able to collect more than THREE TIMES the income than most other investors.

And keep in mind, this is just one stock. Just imagine if you had an entire portfolio filled with these money-churning plays."

I don't know if Lou or anyone else can deliver with these strategies, but my own experience is...."experience is essential". One usually has a much better chance of getting exceptional returns when one has worked such investment strategies for years.

Peter Schiff, the author of The Little Book of Bull Moves in Bear Markets and the President of Euro Pacific Capital (www.europac.net) says it well when it wrote that "...a safe, high-yielding stock that is bought and held meets any investor's objectives, whether they be aggressive or more conservative, provided they understand the risks and have appropriate time horizons."

A "Dividend Income Plus" approach, whether you call it "The Income Tripler" or "Chopped Chicken Livers" is beginning to make more sense than ever before. It seems like common sense (especially to legendary investors like Warren Buffett) to begin finding and accumulating these investments when prices are low and fear levels are high.

If you're interested in The Oxford Club's "Income Tripler" you can either go to www.OxfordClub.com or call 1-800-992-0205. By all means, look into this approach to making your money grow and receiving growing amounts of reliable income. It doesn't cost anything to learn as much as you can.

To give you a hint as to how Lou supplements the dividend income of his favorite, income-producing stocks, he writes, "You simply profit from option transactions without ever buying a single option.

"It's a little like being the house in a casino: The odds are stacked clearly in your favor. You're the one selling to the gamblers!

"Don't get me wrong. Options can and do work.... if you know how to use them properly. They can hedge your risk and maximize your gains. I should know, I've uncovered gains like 160% on Leapfrog Enterprises... 320% on Intrado... 331% on Netflix... 1,223% on OptionsXpress... all with options.

"So why am I calling these speculators out for being so foolish? Because these are the guys placing the most ridiculous bets without hardly any chance of success. They have NO IDEA what they are doing!

But now, with The Income Tripler, we'll be ready to scoop up their money every chance we have..."

PS: I don't endorse or recommend Lou's service, but because I understand what he is offering and how it works, I must admit it is worthy of our most serious consideration. Do your own careful due diligence before subscribing or investing a dime.


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The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.
  
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