Collecting Dividends
Collecting Dividends Like Warren Buffett WORKS
Warren Buffett is considered by many to be the best long-term investor of his generation. Mr. Buffett consistently invests in companies he believes will still be earning big profits fifteen years from now. Most of the companies Mr. Buffett chooses to invest in also pay dividends.
Warren Buffett's approach to collecting dividends works for small investors as well.* Most investors are familiar with the idea that stocks are assets that build wealth over time as they rise in value. However, what some may not know is that every quarter some publicly traded companies issue a payment to shareholders which is a portion of net profit after all expenses are paid. That payment is called a dividend.
AT&T (T) and Coca Cola (KO) are real world examples of two Dow stocks that pay healthy dividends. AT&T pays its shareholders $.44 cents per share and Coca Cola pays its shareholders $.28 per share in quarterly dividends.
If you're a smaller investor and you own one hundred shares of Coca Cola, your quarterly payment would be $28. As you purchase additional shares of Coca Cola your dividend checks will increase over time.
Over time Mr. Warren Buffett has accumulated millions of shares of Coca Cola. In fact, he's one of the largest shareholders. As of May 15, 2013 he owns 400,000,000 shares of Coca Cola. That means Warren Buffett's quarterly dividend payment is over 17 Million dollars per quarter.
Dividends are yet another way the super-rich accumulate wealth and residual income. Any investor can prosper through owning stocks. All wealth is taught; alas not traditionally through our current education system. It's just a matter of getting a financial education and setting goals.
In the Wealthy Investor program I teach three major strategies:
Covered Call Writing
Selling a call option means that you would be selling the right, not the obligation, to someone in the marketplace to buy that stock away from you at a later date.
Dividend Capturing
Institutional investors collect millions of dollars per quarter collecting dividends on Dow components like McDonalds, NIKE and AT&T. So can you.
Volatility Trading
Volatility allows you to purchase a stock and program a sell order in your online trading account which will sell the stock once the price rises a specified amount. As stock prices change throughout the day, you’re making money while you are out enjoying your life.
It’s time to get the financial education you need to become financially free.
So what is your next step?
Order The Wealthy Investors Guide to Stock Market Success or sign up for my FREE Stock Trading and Investing E-Mail List on this page.
In The Wealthy Investors Guide to Stock Market Success, I’ll explain in easy to understand language everything you need to know to get started.
In this original five CD audio series, you will learn the basics of covered call writing and volatility trading and how to use these powerful trading tools in your portfolio.
Yes, you can be a wealthy investor if you get started right now.
* DISCLAIMER: Stocks and options trading involves risk and is not suitable for every investor. The stocks and options prices vary and, as a result, clients may lose or gain from their original investment. Stock illustrations posted on TheWealthlyInvestor.net web site are for illustration purposes only. Your personal results as a trader/investor may vary from the WI students listed above.
