Dividend Investing: Embracing The Power Of Growth!

Here is a great interview from TD discussing how to embrace the power of growth stocks! Click play...

Netflix Love it or Leave it?

I normally do not comment on non-dividend paying companies, yet this company had the potential to become a shareholder's income dream! Netflix was flying high for months and months. On July 13th, 2011 NFLX hit the $298.73 mark, however recently management missed the boat. Their stock has dropped to $168.00 (as of pre-market today). Excluding other factors, mainly due to raising their rates on their loyal consumers. Why raise their fees and risk potentially becoming a dividend aristocrat? Click here to read an excellent article posted on CNBC to learn more. Also, visit Netflix's Investor relations portion of their website, here. I sure hope they can recoop their lost client base because I strongly believed they were on track to become yet another "Common Man" Roth IRA stock. Not only as a growth stock, but a future dividend paying monster.

Netflix 2 years ago, watch below :)

Netflix as of July 2011, watch below :(

Netflix as of today! Click below. Double :(
Netflix not cheap enough, still room to fall, says Tarsala

Investing only $30.00 a month can make you rich!

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!