You don’t have to be a genius to become a millionaire in the stock market.
And you don’t have to be a master trader to ensure that the investments you make return enough to take care of you during your retirement.
All you need is time and a simple plan.
In fact, your plan can be as simple as buying high-quality dividend-growing stocks. You’d only have to let the power of compound interest do its job over time.
Now, we realize that this may sound way too simplistic. But the truth is, long-term investing should be simple. You’re using the twin forces of time and compound interest. And they’re far more powerful than any analysis, economic forecast, and trading strategy.
That’s why we’ve put together this report. We want to teach investors about the long-term value of investing in high-yield dividend stocks. These stocks allow investors to take advantage of both time and compound interest.
But to kick-start your dividend-investing experience, we want to first provide you with an example. And then, we’ll give you a list of dividend stocks that are good for any portfolio.
Let’s get started…
He Was Just a Regular Investor
You’d think it would be pretty hard to hide a billionaire these days. After all, tax returns and Securities and Exchange Commission (SEC) filings can be accessed by intrepid reporters.
Still, a new billionaire crops up from time to time.
More often than not, new billionaires own businesses that hit it big. Of the 19 new American billionaires that Forbes identified in 2013, eight of them inherited their fortunes. Three are in real estate and loan financing. And the rest own successful businesses.
And that’s the case with one of the newer American billionaires Stewart Horejsi (pronounced Horish).
The thing is, Horejsi uses a surprisingly simple strategy to make his fortune…
And this strategy hasn’t changed much over time. In fact, over the last 40 years, this method has reliably delivered stock market gains.
That means what works for Horejsi, and the many millionaires and billionaires before him, could work for you, too.
All you have to do is invest intelligently…
Investing to Make Your Fortune
Horejsi was running the company that his grandfather founded.
It was 1980, and Brown Welding Supply had been struggling. Other companies that sold oxygen and hydrogen tanks to welders had started to move into his Kansas turf.
So in a moment of desperation — or genius — Horejsi took more than $10,000 of company cash and bought 40 shares of Berkshire Hathaway stock. A friend had recently told him about Warren Buffett. Shares were trading for around $265 at the time.
Two weeks later, Horejsi bought 60 more shares at $295. A month after that, he doubled down for 200 shares at $330.
Horejsi eventually owned 5,800 Berkshire Hathaway shares. He sold 1,500 shares in 1998 when they’d been trading as high as $80,000 apiece. This was worth a cool $120 million. And he parlayed that into a successful money management firm.
Today, his remaining 4,300 shares are worth almost $1.23 billion.
He’s done pretty well.
And let’s not forget that Berkshire Hathaway has been a phenomenal success story. Since Horejsi’s first buys at $265, the stock has run to over $309,000 a share. That’s a gain of more than 116,503% over 39 years…
It’s Easier Than You Think
Now, Horejsi’s story may sound like a once-in-a-lifetime windfall.
It’s easy to hear a story like this and immediately think oh, that could never happen to me. But the fact is, massive gains over a span of 20 or 30 years are not once-in-a-lifetime events.
An investment might not give you gains like Stewart’s did, but you can pull in 20,000% or 30,000% within a 30-year period.
Say you bought Starbucks when it went public in 1992. Shares were $17. And $100,000 would have gotten you 5,882 shares.
Starbucks has split its shares six times over the last 20 years, and it only started paying a dividend in 2010. Today, if you’d reinvested those dividends, your 5,882 shares would have grown to 409,676 shares…
That $100,000 would be worth almost $22.89 million!
The bottom line is, you just have to get started.
Don’t worry if you don’t have $100,000 ready to deploy. Start with what you can, and add to it when you can.
The point is to start.
And that brings us to the final segment of our report…
Some of the top dividend stocks out there…
Top Dividend Stocks for Any Portfolio
The Proctor & Gamble Company (NYSE: PG)
As the undisputed leader of the consumer staples industry, Proctor & Gamble has a lot to offer the average investor. Not only does the company have over 100 years of market experience, it’s also been delivering a healthy dividend for a large chunk of those years. Even as our world changes and new players, like Amazon and small consumer staples companies, influence the consumer staples market, Proctor & Gamble has managed to grow. It’s grown its dividend by 4% in the last year, and has a payout ratio of 67.30%
Bottom line: At least in the immediate future, consumer staples aren’t going anywhere — even with companies like Amazon changing the ways in which these staples reach our households. Proctor & Gamble provides a wide range of household products from detergent to diapers. And it’s been showing steady growth since the 2008 financial crash.
McDonald’s Corporation (NYSE: MCD)
I know, I know. McDonald’s isn’t exactly what comes to mind when you think of a cutting-edge modern company. But what’s actually happening behind the golden arches is the epitome of modern. From speedy and efficient systems to heavy marketing and consumer retention efforts, McDonald’s has continued to dominate.
The company has doubled down on expanding into new countries, tapping into markets with developing economies, like China’s. The restaurant has over 35,000 locations around the globe. And it’s continued to deliver new and interesting meals to a changing demographic. The company recently increased its dividend by 14.85%.
Bottom line: Despite a shifting demographic, McDonald’s has managed to grow and meet the needs of its new customers. The company has been a fast-food pioneer, infiltrating new markets with growing economies and developing strong customer bases.
Verizon Communications Inc. (NYSE: VZ)
In the digital age, it’s good to have at least one company in your portfolio that’s paving the way toward a more connected future. Verizon is one such company. Although it’s unlikely that Verizon will be one of 2019’s biggest winners, the company can still act as an anchor for your portfolio with its 4.15% dividend yield. The environment and the fast-encroaching 5G technology have created favorable conditions for the company after it had a lackluster 2018. That being said, there’s a lot of opportunity for Verizon in the future and a hefty dividend, to boot.
Bottom line: 5G has created a market growth opportunity for Verizon. And even if it isn’t a big winner right away, it could be a major victor in our increasingly connected world.
Well, that’s all we have time for with this report.
You can continue learning more about dividend stocks through our Wall Street Watchdogs e-letter. If you’re impatient for your first newsletter, you can always check out our dozens of top-notch educational reports available online.
And remember, once you find a good dividend payer, you can use a Roth IRA to avoid paying taxes when it comes time to spend your fortune.
