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Also,
rising dividend every year would help off-set risk of inflation and risk of a lower stock price during year would actually accelerate my income from security.
Since I would want my position in stock to grow through years, thus increasing my dividend income, all dividends would be reinvested back into stock, until retirement. A lower stock price during year, therefore, would allow dividend from company to purchase more shares, at a higher dividend yield, and would simply accelerate my dividend income.
∙ Diversify into no more than twelve different companies.
Owning shares in twelve companies is plenty. It would provide diversity to sleep well at night, and provide a cash dividend every week of year. Start by owning three companies, and build from there. Determine how many shares you want of each company before moving on to 4th, 5th, and 6th. Invest in sets of three different companies at a time, until twelve are owned.
∙ Persevere
Success in stock market is not so much derived by buying a company’s stock at lows, but is almost guaranteed successful through dollar-cost-averaging over years. One of most powerful methods of investing in stock market is having perseverance to continue adding shares to your stock positions over years, through reinvested dividends and quarterly infusion of funds, be it 50 dollars, or 100 dollars a month. Persistence, persistence, persistence, and your stock market investment philosophy will become unbeatable!
To read PREFACE from book ‘The Stockopoly Plan- Investing for Retirement’ visit: http://www.thestockopolyplan.com
Charles M. O’Melia is an individual investor with almost 40 years of experience and passion for the stock market. The authorof the book The Stockopoly Plan – Investing for Retirement; published by American-Book Publishing. You can invest in the book at http://www.pdbookstore.com/comfiles/pages/CharlesMOMelia.shtml
