Shoebox Investor

What is a shoebox investor? An investor who generally pays himself first. The idea is that any money you can store in a shoebox or piggy bank, should be invested in the market. It is not how much you invest, it is the time value of money you should focus on. The earlier you put the money in the market, the longer you keep it in, the higher the chances of reaping the benefits of accumulating dividends. The reinvested dividends will buy you more shares.

Pay yourself first

Monday, March 3, 2008

Successful Investment Program

Accordingly, "Stocks in the S&P 500 index that paid dividends in 2000 climbed nearly 16%, while nondividend payers slipped more than 2%. On average, in the latest three bear markets years, 200--2002, the dividend payers in the index roughly broke even, while the nondividend stocks fell 35%. In 2004 dividend-paying stocks in the S&P 500 had a total return of 18.2%, compared with 13.2% in 2003. From 2001-2004 dividend payers in the S&P 500 rose 40.5% versus a 27.4% gain for nonpayers."
 
Buying dividend blue chip stocks are a good "lazy" way in investing.  There is no need to forecast or the worry in volatility.  Buy it and forget it.   Companies such as Johnson and Johnson, Clorox, Boeing, Verizon, etc..
 
Buy to Hold
 
 

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