Wal-Mart: Proof That Dividends And Growth Go Together!

I don’t know anyone who would dispute Wal-Mart’s position as one of the biggest growth stories of the 20th Century.

In the span of a few decades, the company went from an unknown small-town store to the poster child for big business. Take a look at some highlights from the company’s history …

• Sam Walton opened the first Wal-Mart in 1962.
• The company went public in 1970.
• In 1974, it paid its first dividend.
• In 1975, Wal-Mart had 125 stores in operation with sales of $340.3 million.
• By 2005, it was the world’s largest retailer (and its largest private employer!) with annual sales reaching $312.4 billion.

As you can see, Wal-Mart began paying a dividend just four years after it went public and that didn’t hurt the company’s growth one iota!

What’s more, Wal-Mart has not only continued to pay dividends to this day, but it has steadily increased those payments along with its rising revenues and profits.

See, in the theoretical world of academia, a perfect growth company may very well reinvest every penny back into its business.

But in the real world, entrepreneurs, executives and shareholders want to reap some of the profits while the growth is happening!

Bottom line: When a company is firing on all cylinders … and bringing in cash by the boatload … it’s more than capable of rewarding shareholders and totally dominating its industry. Find out Why dividends and growth go together today!

To your dividend investing success,

InvestingInDividends.com

An Investing Strategy for the Ages

Contrary to popular belief, you do not need perfect timing to survive — and thrive — in markets like these. Rather, you can use a strategy known as dollar cost averaging.

Despite the name, dollar cost averaging has nothing to do with currencies at all. Instead, it refers to buying equal dollar amounts of the same investment on a predetermined schedule.

For example, let’s say you’ve decided to invest $10,000 in XYZ Corp. Rather than deploying the entire amount at one time, you might instead opt to purchase $1,000 of XYZ stock on the first day of each of the next 10 months.

What’s the logic behind this approach? Well, you can expect just about any stock’s price to vary substantially over a ten-month period. So, when the price is higher, your $1,000 will buy less shares; when the price dips, your $1,000 will buy more shares.

In other words, buying equal dollar amounts over time allows you to reduce your risk to a stock’s short-term price movements, automatically encouraging you to buy more when prices are lower and less when prices are higher.

For more on how this strategy – and how it could have made you money even during the Great Depression, read all about a great “Dividend Investing Strategy” for the Ages

To your dividend investing success,

InvestingInDividends.com

Make Dividend Reinvestment Work for You!

Hi guys,

As you know, compounding takes time, as the money you’ve already earned on your investments begins to earn returns of its own.

For example, if you put $10,000 into a savings account with a 6% annual interest rate, you’ll have $10,600 after one year. Next year, you’ll be earning 6% on the $10,600 rather than just the original $10,000. That might not seem like a big deal, but the effects can really add up over time. Ten years later, you’d have almost $18,000, 80% more than you started with!

When you reinvest your dividends, you’re combining the power of dividends with the power of compounding to form one mega-force. Here’s why:

You’ll be steadily increasing your holdings of a particular stock over time, setting yourself up for even more dividends down the line.

As various studies have proven, dividend reinvestment is responsible for much of the market’s historical performance.
In fact, asset management company Eaton Vance says as much as 65% of U.S. stock gains have come from reinvested dividends!

Make Dividend Reinvestment Work for You!

To your dividend investing success,

InvestingInDividends.com

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The Real Misery Index

Back in the 1970s, the misery index was widely cited. The measure, which was created by economist Arthur Okun, combines the government’s unemployment and inflation rates to give a quick picture of the on-the-ground economy.

Right now, the U.S. misery index is hovering around 8.9 (inflation of 3.9 combined with unemployment of 5%).

That’s not great, but it’s hardly alarming by historical standards. In the 1970s, the index was running near 15%, and it hit a record of 20.6 in 1980.

The real reason that the current misery index looks so tame is because of the way the government measures inflation. There are at least four reasons to find fault with the Consumer Price Index. There are plenty of reasons to find fault with the employment side of the misery index, too. For example, if someone is unemployed but has not looked for work in the last month, they are excluded. Peculiar, isn’t it? Here’s the bottom line: No matter what the statistics say, real people are suffering real hardship right now. Learn more about “The Real Misery Index” right now.

To your dividend investing success,

InvestingInDividends.com