Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
A Stock Market Investment Plan that Never Lets You Down > NetSparsh - Viral Content you Love & Share

A Stock Market Investment Plan that Never Lets You Down

The bulls and bears of the stock market are both tempting and scary to the investors. Speculators are enchanted by the stock market's potential to help them in making quick money with a big M. While those who tread with care and caution, often shy away for fear of losing. However, the stock market is not all about speculative gains or black Tuesdays. It is a place where committed companies look for raising money to fund their activities. Serious investors can actually create wealth not only for themselves, but also for the companies and the nation. A wise way to invest in the stock market is to empower your self with information. You have to know and learn about the company you invest in, from past records and future plans.

Irrespective of what the Wall Street Gurus predict or what the economic indicators like Dow Jones Average say, a simple and foolproof way of knowing that a company is doing well is to keep a track of how much dividend income does it pay to its share holders every year. If the dividend rates have been rising steadily every year, you know you have a safe bet. To benefit from the future prospects of such companies, it is a good idea to rollback the returns into the company. Which means, instead of adding the dividends to your savings, you can invest them in the shares of the same company. That way, you can ensure that the dividends you receive are always higher than what you got last, with a larger number of shares getting added to your investment portfolio every time.

With this kind of an assured investment plan in place, investors with a gambling streak begin to think beyond making a quick gain. While those who were afraid to take risks get wiser.

Let us find out why companies that give ever-increasing cash dividend income are a good choice for investment:

Your Share Holding Goes Up And So does Your Dividend Income.

Your income begins to escalate with your owning more shares every year and the dividend income rising correspondingly.

Your Dividend Income Increases Even If Stock Prices don't.

You are no more at the mercy of the market. Irrespective of what your shares are worth, you keep earning additional cash dividends. In fact, even if the market price dips, you are still at an advantage, as that allows you to reinvest to purchase more shares.

You are not hit by Inflation.

With the dividend income rising every year, you offset the effects of a rising inflation. This particularly provides relief to people who have retired and depend on a regular cash inflow to help them meet their expenses. At this stage one need not rollback the investment into further shares, instead, the cash dividend can be used as a kind of regular pension money.

Start Young

The ingenuity behind this investment strategy is that it protects you from the fluctuations that generally occur in the market. A lower stock market rate only means you buy more to increase your dividends more. It is advisable to start this strategy early in life while you are still working, so that your wealth builds up gradually and constantly over the years. And you are assured of a regular income, as you grow older.

Remember, the success of this proven investment plan depends significantly on the track record of the company you invest in. It should be one that declares a higher dividend at the end of each financial period. A simple way to find that out would be to calculate the dividend yield. You can do that by dividing the annual dividend per share by the price per share. Of course, no investment can be totally free of risks, neither is this one. Keep an eye on the dividend yield, and if that dips, it's a signal for you to opt out of the investment.

James Marriott is a finance writer with more than 15 years of experience in writing financial content, including those related to credit cards, mortgages, stocks, investments, and funds. He has been with RNCOS, a premier financial writing services company, for 2 years as head of financial writing. He is also a regular financial columnist with renowned business journals. For your comments on the article and further financial assistance, please contact our staff writer at info@rncos.com.

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Motley Fool

200 Stock Advisor Picks, 6 Conclusions, No. 5: "Using This Service, You Should Beat Your Mutual Funds"
Motley Fool
Journey in your mind back to March 2002. The stock market was still stumbling around in the aftermath of the dot-com crash, and retail investors were running scared. It was in that environment that Tom and David Gardner launched a monthly newsletter ...

and more »

Barron's

The Stock Market Was Scary This Week. Here Are 5 Mutual Funds for Income Investors
Barron's
Investors have plenty of options for income-oriented mutual funds. The table below lists five such portfolios, which are also known as multi-asset income funds. “Investors really need to look a bit deeper to see exactly what the strategy is to generate ...


CNBC

Cramer: We could be facing a cold war with China, and these stocks may be sacrificed
CNBC
"You have to be cognizant that the strongest stocks today were the techs that have no meaningful exposure to China, namely Amazon, Alphabet and Facebook," he said. "Bottom line? As mutual funds dump stocks of companies that trade with the enemy as ...

and more »

Forbes

Billion-Dollar Portfolio: 10 Stocks To Buy Now
Forbes
Under my definition, that's the line between a small-capitalization stock and a mid-capitalization one. I like this size because such stocks are small enough that they haven't been discovered yet by most big mutual funds or pension funds, but they're ...


NBC4 Washington

How to Protect Your Investments From Being Hacked
NBC4 Washington
Most people hold far more assets in stocks, mutual funds and retirement accounts than in bank accounts, making them prime targets for hackers. “We've seen activity, now, involving scamming 401(k) accounts,” Cyber Scout CEO Adam Levin said. That fraud ...


Zacks.com

Will Record Outflows Spell Doom for Mutual Funds?
Zacks.com
However, in the preceding week, all three major stock indexes fell and posted the worst weekly performance since March. Both the Dow 30 and the S&P 500 registered weekly increase after three consecutive weeks of loss, while the ... As per the latest ...

and more »

Investor's Business Daily

Growth Stocks That Fuel This Mutual Fund Manager's Outperformance
Investor's Business Daily
31, the fund managers had outperformed the S&P 500 for the calendar year as well as the previous three, five and 10 years. That four-for-four outperformance makes the Prudential mutual funds' portfolio an IBD Best Mutual Funds Awards winner. Merely 10% ...


Nasdaq

Is Schwab Total Stock Market (SWTSX) a Strong Mutual Fund Pick Right Now?
Nasdaq
If you're looking for an Index fund category, then a possible option is Schwab Total Stock Market (SWTSX). The fund does not have a Zacks Mutual Fund Rank, though we have been able to explore other metrics like performance, volatility, and cost ...
3 Best Mutual Funds to Buy as Industrial Production Picks Up AgainInvestorplace.com

all 4 news articles »

Investor's Business Daily

Best Mutual Funds Buying CVS, United, Lowe's And These Other Top Stocks
Investor's Business Daily
Eleven stocks from the medical sector made this month's list. Thirty-seven top performing mutual funds invested just under an estimated $160 million in biotech industry leader Biogen. Abbott Laboratories (ABT) (35 funds, $258 million), HCA Healthcare ...


TheStreet.com

US Stock Futures Gain as China Tax Pledge Sparks Rally, Steadies Global Market
TheStreet.com
Want to Buy $1 Worth of Stock for 90 Cents or Less? You can with certain so-called "closed-end" mutual funds - an often overlooked investment class. Click here to register for a free online video in which TheStreet's retirement expert Robert Powell and ...

and more »
Google News

How To Make, And Keep, Money Trading Stocks

If you are serious about making and keeping money by... Read More

Stock Options Trading Strategies - Lean

Professional stock options traders use the term lean to refer... Read More

Wall Street Paradigm

In 1960 an engineer working for a watch company in... Read More

Swing Trading Strategies

Using Swing Trading Strategies and Technical Analysis when Trading Stocks... Read More

The Exclusive Club of Large Caps

Picture one of those clubs where only the real heavyweights... Read More

Using Sector Funds to Construct Diversified Mutual Fund Portfolios

'Sector funds are too risky.' 'I doubled my money with... Read More

A Triple Dipper: How to Make 3 Profits on 1 Stock Trade

This is a rather simple strategy with which I am... Read More

Why This Bear?

People are constantly asking me why is the stock market... Read More

Making a Stock Watch List

I am taking the time to help others learn the... Read More

Understanding a Stocks PEG Ratio

A PEG ratio cannot be used alone but is a... Read More

The Skinny on Mutual Fund Investing

Mutual fund investing is a lot like Thai cooking. Everyone... Read More

Which Way The Market

I am hearing predictions by brokers, financial planners, talk show... Read More

Patterns

The Law of Chaos is the theory of random unpredictable... Read More

Emotional Trading

The single most expensive stock market trades are those made... Read More

Dont Ask Your Broker

Unfortunately, most of you who are reading my column are... Read More

Protectionism

First let's see what protectionism is. According to Mr. Webster... Read More

Performance Funds

Mutual funds are doing more and more to discourage investors... Read More

Gurgle Gurgle

Caught in a whirlpool and being sucked under. No life... Read More

Being Wrong Buying Stock is Okay

Being wrong is OK, but let's not carry it to... Read More

Stock Market Investments

If there is one term over-used when talking about making... Read More

Investing in Trash Company Stocks

Refuse is a serious issue in any society, about as... Read More

Direction

It is difficult to make money in a bull market,... Read More

Stock Market Volatility

In my opinion, due to the volatility of stock market... Read More

Price Targets

Every day in any financial publication you will find the... Read More

Stock Market System ... ONLINE STOCK TRADING ... Beyond Day Trading Basics & Tips

Day trading is all about making buy and sell decisions.... Read More