Dividend investing is one of the most proven long-term income strategies.
This completely undiscovered strategy could help you collect 12.9% payouts, every 17 days. Plus, it DOES NOT use options, leverage or day trading.
Even back in the 1970s, my grandparents knew that buying dividend stocks was a great retirement strategy.
Now, my grandparents weren’t rich. My grandfather was a stamp collector and dealer. And my grandmother was a public-school teacher in New Jersey. At the time, investing in stocks wasn’t easy. You couldn’t simply get on the computer and open an online brokerage account.
Yet, they jumped through the extra steps and bought a few shares of just one stock: Exxon Mobil (NYSE: XOM). And they decided to enroll in the dividend reinvestment program.
At the time, they were still working and didn’t need the cash. They knew that by postponing those early dividend checks, they would be able to increase their future income from Exxon.
Once they retired ̶ and needed the cash to supplement their social security ̶ they stopped reinvesting the dividends and instead collected their quarterly checks.
Now, dividend reinvestment programs make a ton of sense. This is especially true if you’re young and don’t really need the cash today. It’s far better to reinvest those dividends and grow the size of your position. This means that when you DO need the income, you’ll be collecting more.
Lots of folks need more income right now. Which means they can’t delay those dividend checks and participate in a dividend reinvestment program.
The recent jump in stock prices has reduced the dividend yields for major U.S. indices. For example, the S&P 500 is up 13.4% in the last year. And the dividend yield has increased 9.7%. So, we’re seeing the movement for stocks outperforming the dividend growth.
Today the S&P 500 is delivering an annualized yield of just 1.9% (five years ago the yield was 2.3%).
Many investors prefer to own a diversified ETF such as the SPDR S&P 500 (NYSE: SPY). Of course, some dividend stocks are paying out much higher yields.
Consider the top five highest yielding stocks in the S&P 500:
- Frontier Communications (NYSE: FTR): 2% yield
- CenturyLink (NYSE: CTL): 2% yield
- Technip (NYSE: FTI): 9% yield
- Macy’s (NYSE: M): 5% yield
- Seagate Technology (NYSE: STX): 4% yield
What you’ll notice is that these companies aren’t exactly the “highest quality” blue-chip stocks. In fact, I’ve found that most of the high-quality dividend stocks pay dividends of less than 4%.
Perhaps if you’re looking at real estate investment trusts (REITs) or master limited partnerships (MLPs), you can find quality companies paying out 5%. But those exceptions are few and far between.
With dividend yields so low, we conducted a unique research project searching for the world’s biggest dividends.
You see, we spent more than six months analyzing 4,218 of these payments of the biggest dividends over a period of 24 years.
What was found was shocking: a simple way to collect huge one-day payouts of the biggest dividends.
After conducing this research project, we’ve actually been trading this strategy with some amazing results in finding and collecting the biggest dividends.
Using this strategy, we’ve been able to collect 12.9% dividends every 17 days (on average). Unlike most dividends that are paid out quarterly, these payments happen in a single day.
So, what does that mean? Let me show you two potential situations.
Scenario #1: Invest in the S&P 500
Well, let’s assume that you have $100,000 invested in a brokerage or retirement account.
If you’re invested in a popular ETF like the SPDR S&P 500 ETF, you’re earning 1.9% in annual yield. So that means you are collecting $1,900 in dividend income every year. And the quarterly payments are going to be about $475.
That’s nice extra income. But for most folks, it won’t go very far in terms of paying the mortgage, medical expenses or even for the groceries.
Scenario #2: Invest in Special Payouts
Now, let’s assume you’re investing that same $100,000 in these special payouts.
Based upon our trading experience in the last year, the average payout amount is 12.9%. That means $12,900 income in a single day. That’s not an annual yield that needs to be divided into four separate quarterly payments.
Right now, I’m prepared to pull out all the stops and show you exactly how this works.