The Secret to 24% Yearly Gains — With Safe Blue Chip Dividends

The best time to buy a dividend grower is usually any time – if you’re holding period is long enough, that is. But, what if you don’t have years to wait to get rich? Today, I’m going to show you a simple dividend growth “timing formula” that will help you accumulate great wealth with shareholder-friendly stocks. I’m talking about gains up to 40% per year, which means your money will double every two years. Worse case, you might have to settle for 24% annually – which means your money will take three years to double! How’d we do it? How are their portfolios already on pace to double in value by this time next year, just two years into their investments? ...

Simple – we bought stocks with prices that were due to “catch up” with their soaring payouts. The first of the two timing signals we’ll discuss today. If a stock pays a 3% current yield and then hikes its payout by 10%, it’s unlikely that its stock price will stagnate for long. Investors will see the new 3.3% yield, and buy more shares. They’ll drive the price up, and the yield back down – eventually towards 3%. This is why your favorite dividend “aristocrat” – a company everyone knows and has paid dividends forever – never pays a high current yield. Its stock price rises too fast!

Source: InvestorPlace

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