| | | | Dear reader,
As I’ve mentioned before, the majority of “dividend stocks” don’t actually pay a great dividend.
There’s nothing wrong with a low-paying great stock like Apple, but the goal of my approach is to make sure the income is significant enough that even when a stock isn’t growing, my portfolio is still producing cash… And a 1-2% dividend isn’t going to do that!
On the other hand, if you look at some of the stocks paying what I would call “extreme dividends” like 40%+... They’re not good stocks to own. And, as I mentioned, a high paying stock that melts away your investment isn’t really worth owning at all!
So what’s a good number?
My rule of thumb is at least 3% annual dividend, but I target mostly stocks with 5%+ dividends.
My average yield across my entire portfolio at the moment is about 7.2%.
So that includes stocks at 3%... 4.5% … 7.8%... and up to 12%.
Ultimately, I want stocks that I can expect a reliable payment from and if they’re not generating much growth in the actual price of the stock, they still generate enough cash flow to make a meaningful difference.
But the dividend yield is only a portion of what makes a great dividend stock! Keep in mind that if you can own a dividend stock that pays 3% but grows 8% a year or a dividend stock that pays 6% but grows 1% a year, the lower yielding stock is much better to have in your portfolio!
We talk more about that inside my Ultimate Dividend Workshop, but for now you just need to know which stocks to target.
Click here to continue reading the rest of Lesson #3
In tomorrow’s lesson, I am going to show you how and why you should automatically reinvest your dividend payments…
See you tomorrow,
Nate
P.S. Congrats you’re more than half way through the 5-day course…
Don’t want to wait any longer?
Want to know how to build The Ultimate Dividend Portfolio in just 3 basic steps…
Watch this workshop and as a bonus, I’ll give you my 7 best dividend stocks for FREE…
That way, you can set yourself up to start collecting extra income right after the workshop ends. 🙂 | | | | |
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