True financial freedom means having a reliable, sustainable and growing income stream that allows you to enjoy life on your terms. The best way to create an income stream is to invest in high-earning, high-yield dividend stocks. Albert Einstein famously said “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” Like compound interest, compounding dividends harnesses the power of the snowball effect that occurs when your dividends generate even more dividends. The day you start taking advantage of the snowball effect is the day you begin your journey to true financial freedom. Some other advantages of income investing are:
1) The dividend income investor doesn't have to sell stocks to generate an income stream. If your stocks don't pay dividends, the only way to generate an income stream is to sell shares. You could outlive your portfolio or, in a bear market, you might run out of stocks to sell because you're selling at depressed prices.
2) The dividend income investor's dividend income isn't affected by stock market volatility. Volatility has no affect on a company's ability to pay dividends. Therefore the dividend income investor can predict, with a high degree of accuracy, when they will reach their income goal and financial freedom.
3) The dividend income investor isn't concerned with trying to time their transactions. They methodically reinvest their dividends. In doing so, they take advantage of the snowball effect that happens when their dividends generate more dividends.
4) If the dividend income investor lives off a portion of their dividends and reinvests the rest, their income will continue to increase as they grow older; enabling them to leave an inheritance or bequeath their estate to their favorite charity or organization.
5) By compounding dividends, the dividend income investor will generate a reliable and sustainable income stream that leads to financial freedom and a lifetime of rising income. You can attain these goals sooner by subscribing to Fly High Investing for these reasons:
1) The Fly High Investing portfolio is composed of the best 50 dividend stocks identified by a quantitative and qualitative analysis of their earnings. The method to analyze a company's earnings combines reported and forecast earnings; helping ensure the dividends generated by the portfolio are reliable and sustainable. The portfolio's dividend yield is greater than 12%, making it one of the world's highest yielding funds. More importantly, the portfolio has an earnings yield greater than 13%; meaning the dividends are paid out of earnings.
2) Most of the stocks in the portfolio are Regulated Investment Companies (RICs). RICs are required to distribute at least 90% of their earnings in the form of dividends. Another advantage of RICs is they're exempt from paying corporate income taxes, enabling them to pass more of their earnings on to shareholders. For these reasons RICs are ideal for dividend income investors.
3) All the stocks in the portfolio can be held in tax-deferred accounts such as 401Ks and IRAs. To avoid complicated K1s there are no Master Limited Partnerships (MLPs) in the portfolio. If held in a tax-deferred account, dividends generated within the account are also tax-deferred. To buy stocks within a tax-deferred account all that's required is a brokerage link within the account.
4) A subscription to Fly High Investing costs as little as $39. Most advisors charge hundreds, and some charge thousands of dollars to build and manage a portfolio. Most actively managed funds charge expensive management fees, which increase with the value of your portfolio. Since you'll be managing your own account, you could potentially save thousands of dollars in fees every year. If you agree that the power of compounding dividends from high-earning, high-yield dividend stocks is the best path to financial freedom and retirement security, subscribe to Fly High Investing.