Want to protect your money? Take the money you need for the next 1-3 years and keep it in cash: CDs or Money Market Funds or Savings Accounts. Somewhere that's easily accessible because you never really know when things can turn. Bull markets can go on longer than we expect.
Take the rest of the money you need for the long-term and invest it in stocks and bonds - something that will give you growth and help you out perform inflation over a long period of time.
2. The Underappreciated Yet Powerful Dividend. Dividend Reinvestment
Baby Boomers are living longer than ever so we better make sure our money is going to last right along with us! Most people do not appreciate the extent to which dividends can contribute to their total return. In fact, did you know, that since the 1930s dividends have contributed 50%, if not more, to the total return in stocks!
Dividend paying stocks offer a more conservative way to invest in equities without all the worry. How? Owning dividend stocks means that even if a stock goes down, you will still receive the dividend cash in your portfolio to supplement your income or to use to buy stocks at a lower price!
3. Yes, It's Possible! Dividend Investing AND Growth
Our strategy at CAIM is 'Growth in Income.' In other words we aren't just looking for stocks that will pay a high dividend, but for those that have enough to pay that dividend, grow it and reinvest it back into the business. This way you get that growth in earnings and growth in stock price.
4. Let the Experts Handle It! How We Help Our Clients
At CAIM our job is to ensure that we work with great, solid companies. Companies with low levels of debt and strong cash flow, who are paying dividends and increasing their dividends, sometimes greater than the rate of inflation. We also look for companies who, going forward, plan for capital expenditures and how much they will put back in to grow the company. That's key!
TheMoneyShow. Catherine Avery's Ideas: Dividend Stock, Asset Allocation
