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The Simple Market-Beating Income Strategy Designed For Everyone

I recently had the honor of taking over the reins for one of the most successful premium investment services in StreetAuthority's 15-year history. For those who may not be familiar, this service is called The Daily Paycheck. And although I just took over this service, to be quite honest, I've been a big believer in the principles behind it for years.

Many of our followers see the merits of the system, too. In fact, a large number of subscribers who have been with us since Day 1 -- all the way back in December 2009. They've seen firsthand as the portfolio's initial $200,000 stake has grown into the $330,000-plus portfolio it is today.

New subscribers are now greeted with a portfolio of more than 50 securities. And the questions we get asked most are 1) How do I get started? and 2) Can I use this strategy if I have less than $200,000 to invest?

The short answers to those questions are: slowly and absolutely.

Let me explain...

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[More from StreetAuthority.com: 4 Ways To Start Earning Monthly Income Today]

I want to spend a little time explaining the "science" behind The Daily Paycheck strategy and how you can use this strategy to meet your individual needs with your available investment resources.

The Benefits of The Daily Paycheck Strategy
The Daily Paycheck strategy traces its roots back to an experiment. We wondered whether it was possible for an individual investor to build a personal portfolio of dividend paying stocks to see if he could get 30 dividend checks in a month.

But the results proved to be far more than the joy of receiving dividends every day. You see, we decided to enroll all of the securities we bought in an automatic reinvestment program through an online brokerage account. And before long, our little experiment was beating the market.

Now, you're probably familiar with the power of the compounding growth of dividend reinvestment. As you can see from the chart below, if you invested $20,000 in securities paying a 7% yield, after 10 years your portfolio would be worth $39,343 with reinvested dividends.

And if your holdings happened to boost their dividends by just 5% annually -- something even giant blue chip like AT&T (NYSE: T) has been able to beat -- your portfolio would be sitting at $46,475. That's an increase of 132.4%. And that's assuming zero capital gains. That isn't bad, especially when you consider the S&P 500 Index lost 26.5% in the ten-year period ended in 2009.

[More from StreetAuthority.com: Why I'm Buying Shares Of The 'Other' Social Network]

But the income part of the equation is even better. The chart below shows your potential annual income stream assuming a $20,000 initial investment. Thanks to the power of reinvested dividends and dividend growth, after 10 years your portfolio could be generating $5,299 in annual income -- that's 278.5% more income when compared to an investor who doesn't reinvest. In fact, it could be generating an effective yield of 26.5% based on your initial $20,000 investment.

If you have even a little bit more time on your investment horizon (or more money to invest, or additional dollars to invest each year), then the numbers only get better. And keep in mind that these are conservative estimates.

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This Strategy Works For Everyone...
While we understood the power of compound growth, we were frankly surprised that an income portfolio -- even one with dividend reinvestment -- had market-beating potential. Month after month we reviewed the results. Before long, we realized some unique benefits of the portfolio he had built:

"It was less volatile than the overall market. For investors who were tired of losing sleep over big swings in their portfolio, it offered a less bumpy ride. And after the financial meltdown of 2008, most investors were in need of a good night's sleep.

It was a particularly nice transition strategy for Baby Boomers. Boomers are at or nearing retirement. They need a strategy that can turn their growth portfolios into portfolios that generate income. Not only does our portfolio beat the overall market in most years, we also continue to increase our income over time.

After launching The Daily Paycheck, we quickly realized that this strategy wasn't just for retirees. Of course, retirees liked the above-average yields for current income. But recent college graduates, with a long investment horizon, also loved it. With little disposable income, they viewed it as a safer way to start investing.

No matter where you fall along that time horizon, you should consider dedicating at least a part of your portfolio to compound dividend growth. And while you could certainly pursue this on your own, I'd encourage you to check out our special presentation. You'll learn more about how the Daily Paycheck strategy works, as well as find out how you can access our current portfolio with all of the latest recommendations -- for the lowest yearly price our publisher will allow. All you have to do is follow this link.

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