1. Ensure that your Dividend Stock Portfolio is held within a Roth IRA.
2. Setup an automatic transfer on a daily, weekly, or monthly basis from your checking or savings account to your broker (i.e. Sharebuilder, Fidelity).
3. Allow your broker account balance to grow throughout the month. Higher account balance = More stock purchasing power!
4. Setup an automatic trade with free dividend reinvestment during the last week of the month preferably with Sharebuilder (only $4.00 per automatic investment plan trade - basic program).
5. Continue to invest for 5 more months straight (6 months total) into a different high yielding, dividend aristocrat stock each month. (For example, JNJ, PG, DD, EXC, XOM, O, MCD)
6. Perform steps 2 through 5 for 6 more months into 6 different high yielding, dividend aristocrat stocks.
7. Repeat steps 2 through 5 using the original 6 stocks over the course of the next 6 months.
Your Dividend Stock Portfolio will be well diversified and 12 companies will be working for you! All paying you money on a monthly or quarterly basis! Each dividend payment will get you closer and closer to a stress free, easy living retirement. It's all about reinvesting your dividends and allowing them to compound for years. This formula will teach you how to become very disciplined with your stock selections and keep your risk profile low. Please feel free to e-mail me with any questions that you may have.
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