Monday, February 1, 2016


On the heels of record January dividend earnings, February started off great with 4 dividend payments for the first of the month!  Will collect 10 more payments before the end of the month, with 2016 dividend earnings set to beat out 2015 by a wide margin!  Should boost monthly cash flow by another 3-4% with purchase of additional shares of PHK this month.  If available cash allows, I'd also like to boost my stake in AOD, but I'll have to wait and see.  May have to make that purchase in March.

I keep seeing so much in the mainstream media about the rich getting richer and the poor getting poorer.  While on the surface this seems horribly unfair, it's really just a matter of educating people to change their habits.  I am not rich by any stretch of the imagination, yet my dividend income will increase this year by 25%, pretty much on it's own.  If I could live long enough for compounded earnings to work it's magic, I'd eventually be one of the "rich getting richer."  From a more practical standpoint, considering my age, I'm just looking to boost retirement income.  However, there is no reason young people have to stay poor in the United States.  If you save your money and invest in income producing assets, whether it's dividend stocks, real estate or whatever, then eventually you earn more from your assets working for you.

To illustrate more clearly why the rich keep getting richer, I recently read the annual report from one of my mutual funds.  It has a little over $1 billion in assets and earns over $83 million dollars in dividends per year!  Most of us will never have $83 million in a lifetime, but it shows the earning potential of putting the money you do have to work.  There are several billionaires in the world today, who have way more than $1 billion dollars, so of course they keep getting richer because their money is working 24/7 to earn them even more.  While you or I may not have the means to make that kind of cash, the principle works the same for a small amount of money as it does for a billion dollars.  So if you're investing in income producing assets and reinvesting profits, then you will become wealthy over time.  This is what mainstream media needs to be telling people, instead of giving them the impression that successful people are conspiring against them, or that they should have their money seized and redistributed.  That is socialistic nonsense.

So the rich are getting richer and you should be too.  It's as simple as saving as much as you can, investing in income producing investments and reinvesting profits.  

No comments: