This is not a blog where I pretend that I can make you rich. I can however provide you with simple, easy to follow instructions on how to make what money you have left after all bills are paid, kids are fed, etc. into a nice size income generating system. It is important to maximize each dollar that you earn and then make the money work for you. It is very easy to continue to spend your hard earned money on things you want so badly. For example, a new jacket, the latest watch or a new purse, however if you already have a similar item that isn't broken and does not need to be replaced, then don't buy a new item. Simply transfer those dollars from your checking or savings account into your brokerage account. If you saved only $1.00 per day for an entire month (i.e $30, $28, or $31.00) then purchase shares of stock on the 1st of each month you will be in great shape for the long term. You will learn to be not as quick or impulsive to buy new products and feel better knowing that you already have a plan in place.
If you invested $30 into LTC Properties, Inc, stock ticker LTC today that would provide you with 1.26 shares. LTC pays a monthly, key word monthly, dividend to all shareholders at 14 cents per share. If you never touched this one transaction for 30 years you would receive $58.80 in total dividends, almost doubling your money. This does not even include the amount of money you would receive if you reinvested those monthly dividends. At year 30 you would received $198.28 in total returns, based on an intial $30.00 investment at a 7.1% annual return rate (LTC's current annual dividend yield). $228.28 total ($30.00 + $198.28). That being said, imagine if you continued to buy $30.00 of LTC on a monthly basis.
Your growth potential is limitless if you view dividend stock investing from the common man perspective. Thank you for your time. Have a great Sunday!
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