Dividends Boost Boom & Bust gains by 33%

Let’s face it – raises are hard to come by these days. That’s if you have a job.

Employers made major cuts in the aftermath of the 2008 crash. The ones who are actually hiring nowadays have their pick of thousands of applicants, all of whom will gladly accept a job for about half of what they previously made. That’s a great deal for the employer, even if it leaves the new employee feeling used and abused.

Boom & Bust subscribers know well just how tough the job market is these days. They also know how tough the economy is and how dangerous the markets are.

They’re not blinded by fuzzy government numbers or misguided “experts.” They know that in this Economic Winter Season they need to stay flexible… that steady streams of income can mean the difference between turning a bust into a personal boom or vice versa. That’s why they’ve turned to us.

We not only encourage subscribers to follow us into some of the market’s best income-producing investments… we do all the leg work and research needed to find them. After all, dividend-paying stocks can really juice up the returns of a well-chosen portfolio. The evidence is clear…

Here’s a chart showing the returns investors in the U.S. and U.K. have earned since 1900. On the bottom (the blue and red lines) are the returns attributed to capital gains only. In other words, no dividends. On the top (the green and yellow lines), dividends are factored in.

See larger image

Look at the big difference that makes! With dividends, U.S. investors gained 10.1% per year – nearly twice the return of 5.4% per year without dividends.

And Boom & Bust subscribers can attest to the power of dividends. Having just completed an audit of the Boom & Bust portfolio, I’m pleased with our income-generating investments.

We own eight dividend-paying investments in the Boom & Bust portfolio. These have paid us a combined $12.44 since they entered our model portfolio.

The individual yields range from 1.2% (for a Canadian fertilizer giant) to 8.4% (for a healthcare real estate trust). Our average, yield on these eight investments is 5.1%, giving us a nice boost to our overall gains.

In fact, I calculated the return on these investments with and without the dividend payments we’re collecting. My results echoed the chart above. In our case, dividends increased our return by 33%!

That’s a pretty good deal in today’s ultra-low interest rate environment. If you haven’t yet taken the chance to join us, I encourage you to read this.

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Categories: Markets

About Author

Adam O'Dell has one purpose in mind: to find and bring to subscribers investment opportunities that return the maximum profit with the minimum risk. Adam has worked as a Prop Trader for a spot Forex firm. While there, he learned the fundamentals of trading in the world’s largest market. He excelled at trading the volatile currency markets by seeking out low-risk entry points for trades with high profit potential. An MBA graduate and Affiliate Member of the Market Technicians Association, Adam is a lifelong student of the markets. He is editor of our hugely successful trading service, Cycle 9 Alert.