Dividend Paying Stocks

Written by Charles M. O'Melia


(corrected) Dividend Paying Stocks

I would like to share withrepparttar reader an article printed inrepparttar 112448 financial section of U.S.A. Today on March 7, 2003 which exemplifiesrepparttar 112449 awesome power of a stock dividend.

MICROSOFT TO ISSUE FIRST DIVIDEND TODAY:

Microsoft investors will get their first payday today, whenrepparttar 112450 tech giant shells out its first dividend. At 8 cents a share,repparttar 112451 dividend will costrepparttar 112452 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 - torepparttar 112453 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 underrepparttar 112454 official poverty level. Bill Gates, by giving away his Microsoft dividend to those living underrepparttar 112455 poverty level could begin to create 96 millionaires, year after year after year. What a boost torepparttar 112456 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 allrepparttar 112457 hardships for those people currently living underrepparttar 112458 poverty level. Of course, I would probably start feeling sorry for all those people who were living right atrepparttar 112459 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,repparttar 112460 newly created millionaires probably hadn’t read my book! They would probably start using their computers to start day trading inrepparttar 112461 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 Fund

Written by Charles M. O'Melia


"You have permission to this article either electronically or in print as long asrepparttar author bylines are included, with a live link, andrepparttar 112447 article is not changed in any way. Please provide a courtesy e-mail to charles@thestockopolyplan.com telling whererepparttar 112448 article was published. The author retains full copyrights!"

The Perfect Mutual Fund

Isrepparttar 112449 Mutual Fund you build yourself!

The perfect Mutual Fund you build should haverepparttar 112450 objective of owning no more than 12 to 15 companies; owning shares in 12 companies would allowrepparttar 112451 diversity needed to sleep well at night and would provide a cash dividend every week ofrepparttar 112452 year. The 12 companies (with staggered dividend payout dates) in your perfect Mutual Fund should not only provide a cash dividend every week ofrepparttar 112453 year, each company should also have a historical record of raising their dividend every year for at leastrepparttar 112454 past 8 years (to eliminate risk).

The perfect Mutual Fund would have no fees attached, every cent put intorepparttar 112455 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 (buyingrepparttar 112456 same stock at different prices throughrepparttar 112457 years) into your holdings every quarter (your dividends fromrepparttar 112458 companies would be doing this already, commission free; and inrepparttar 112459 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 inrepparttar 112460 Fund would be higher thanrepparttar 112461 previous dividend from that same company (as long asrepparttar 112462 company, at least, maintains their dividend and inrepparttar 112463 perfect Mutual Fund every company has a history of raising their dividend every year).

Inrepparttar 112464 perfect Mutual Fund, when prices of your stock holdings inrepparttar 112465 Fund decline,repparttar 112466 cash dividend income fromrepparttar 112467 perfect Mutual Fund would simply accelerate. The reason for this is simple -repparttar 112468 lowerrepparttar 112469 stock prices inrepparttar 112470 Fund,repparttar 112471 higherrepparttar 112472 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,repparttar 112473 company pays a quarterly 50 cents a share dividend. At a lower stock pricerepparttar 112474 reinvested dividend and quarterly investment purchases more shares.

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