Dividends have been around since 1602 when the Dutch East India Company paid a 18% annual yield.
Wall Street has always pushed the idea that great companies pay dividends. If a company can afford to pay a dividend then obviously they are making money and want to pay their shareholders a portion of that profit.
The problem is that Wall Street touts these companies as safe havens and income generators.
The income is great as long as the stock price doesn’t decrease.
In bear markets, investors tend to use dividend paying stocks for their lower Beta to decrease their overall portfolio risk.
If there is one lesson to be learned in a bear market is that everything goes down.
We created a report to show the best yields and percentages that the stocks have dropped from their highs.
If this interest you then here is a link to the Free Report.
If you are interested in investing less capital and creating an income stream then please read below!
We have been on Wall Street for over 25 year, as professional floor traders, hedge fund managers, software architects and proprietary desk traders.
We only mention this because the time we have spent trading and investing has led us to combine time tested strategies together to create an incredible robust system.
In the hands of the uneducated these strategies can be risky but with education and the right combination they create a strategy that every investor should be using.
This strategy will reduce your risk to 20-30% of the dividend stock you invest in and give the same yield in less than a month. You do not have to hold it for a year to collect the entire yield. This can be done over and over again. Consider it more like owning an investment real estate property that you collect rent on each month.
So let’s compare the best dividend yield vs our strategy.
A dividend yield in CTL gives you 13.5% with the stock’s current price at $15.3. For us to make the 100% of that yield the stock would need to stay above $15.3 by the end of the last dividend. You can make and loss a lot of money within that one year. You risk is $15,300 and is reduced each time you get a dividend payment.
If we look at our strategy yield in NVDA you could risk (as of 12-27 at 1:29PM) $13,250 to make $3,800 or 28% in 8 days if the stock stays above the current price of $126.95 for the next 8 days.
Similar cash outlay, time comparison of 8 days vs 1 year and 28% vs 13.5% on yields.
There really is no comparison.
Some people may say that they don’t want to invest $13,250, then cut it in half, only do a quarter or a tenth.
If you invest a tenth of that $1,325 and make $371 you could do it 5.8 more time and be at the same level as your dividend. You would only be invested for 48 days total vs 365 days for your dividend!
You can stay with dividends, but please realize that in BEAR markets…everything goes down and a dividend of a few percent is not going to overcome a major selloff.