Dividend Paying StocksWritten by Charles M. O'Melia
(corrected) Dividend Paying StocksI would like to share with reader an article printed in financial section of U.S.A. Today on March 7, 2003 which exemplifies awesome power of a stock dividend. MICROSOFT TO ISSUE FIRST DIVIDEND TODAY: Microsoft investors will get their first payday today, when tech giant shells out its first dividend. At 8 cents a share, dividend will cost company $850 million. Co-founder Bill Gates, who owns about 1.2 billion shares will receive a dividend of $96.5 million. The dividend marks a shift for Microsoft, which had long hoarded cash - to tune of $43.4 billion – for research, acquisitions and legal claims. After reading this article I couldn’t help thinking about a report, which I believe stated that there were an estimated 33 million people in America living under official poverty level. Bill Gates, by giving away his Microsoft dividend to those living under poverty level could begin to create 96 millionaires, year after year after year. What a boost to economy that would be! Imagine all those new millionaires every year spending money on something other than food, Salvation Army clothing and shelter. Bill Gates (by giving away his Microsoft dividend) could begin to eliminate all hardships for those people currently living under poverty level. Of course, I would probably start feeling sorry for all those people who were living right at poverty level. I could almost hear Ma telling Pa now, “If we only didn’t sell those $40.00 worth of aluminum cans, we could have been millionaires right now.” Then again, those newly created millionaires would probably begin buying computers filled with Microsoft software and Bill Gates would start getting his money back. And, if that wasn’t enough, newly created millionaires probably hadn’t read my book! They would probably start using their computers to start day trading in stock market and end up right back where they started. Holy moly! I better finish this book or they won’t stand a chance!
| | The perfect Mutual FundWritten by Charles M. O'Melia
"You have permission to this article either electronically or in print as long as author bylines are included, with a live link, and article is not changed in any way. Please provide a courtesy e-mail to charles@thestockopolyplan.com telling where article was published. The author retains full copyrights!"The Perfect Mutual Fund Is Mutual Fund you build yourself! The perfect Mutual Fund you build should have objective of owning no more than 12 to 15 companies; owning shares in 12 companies would allow diversity needed to sleep well at night and would provide a cash dividend every week of year. The 12 companies (with staggered dividend payout dates) in your perfect Mutual Fund should not only provide a cash dividend every week of year, each company should also have a historical record of raising their dividend every year for at least past 8 years (to eliminate risk). The perfect Mutual Fund would have no fees attached, every cent put into Fund would work toward your return on investment (ROI). There would not be any commission fees, load fees, management fees, operating or advertising fees, and there would be no illegal trading practices, hidden fees abuses or any type of hidden fee. The perfect Mutual Fund would benefit only you and your family and no one else. The perfect Mutual Fund would require a savings plan to add to your holdings every quarter, until retirement. This would allow your perfect Mutual Fund to dollar-cost average (buying same stock at different prices through years) into your holdings every quarter (your dividends from companies would be doing this already, commission free; and in perfect Mutual Fund your quarterly investments into more shares of each company would also be commission free). With this in mind, every dividend received every quarter from a company in Fund would be higher than previous dividend from that same company (as long as company, at least, maintains their dividend and in perfect Mutual Fund every company has a history of raising their dividend every year). In perfect Mutual Fund, when prices of your stock holdings in Fund decline, cash dividend income from perfect Mutual Fund would simply accelerate. The reason for this is simple - lower stock prices in Fund, higher dividend yields. A company, for example, may pay a quarterly dividend of 50 cents a share. Whether that company’s share price is 70 dollars a share or 40 dollars a share, company pays a quarterly 50 cents a share dividend. At a lower stock price reinvested dividend and quarterly investment purchases more shares.
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