But before I tell you what the is, let me first tell you what it's not...
It's not illegal. It's not confusing. And it's not a get-rich-quick scheme.
When used properly, this loophole can greatly reduce the risk of losing in any .
But before I go on, I must say that there are a few caveats to how you use it. First, you have to follow this simple strategy exactly as I'll outline below. Second, it only works with high-yield and .
It all started with a simple saying I heard years ago…
"The best time to plant a tree was 20 years ago. The second-best time is today."
That saying has stuck with me. And if you hadn't noticed, it's talking about a more than planting a couple of apple trees in your backyard and enjoying the fruit later.
The real lesson here is this: It's the moves we make today that deliver the greatest payoff down the road.
And that's the perfect analogy for in consistent, high-quality payers. I firmly believe the high-yield we buy today -- those with steady and increasing payments -- are the ones that end up paying us the most in the long run.
Just imagine if you had bought no more than a handful of the market's top payers just 10 years ago.
- Altria (MO) pays 5.2%, has increased the dividend 26% in the past three years, and has returned 617% in the last 10 years thanks to all the dividends paid.
- Realty Income (NYSE:O) brags of being the "Monthly Dividend Company" and returned 335% in ten years, thanks in part to its 4.9% .
- Magellan Midstream Partners (MMP) has returned 890%, thanks in part to its 4%-plus and the fact that it has increased payments 233% since 2003.
As you can see, thanks to dividends, each of these
But the benefits don't stop there. If you were to hold those stocks for a longer period, then the difference would be even more pronounced.
And that's the premise for the loophole. Every time you're paid a , the risk of losing money on that position gets smaller. And over time, those steady -- and increasing -- can add up to unlikely returns, even from "boring" companies. Hold your stocks for long enough and eventually you're collecting pure with each payment.
Of course, because it takes a while to make any dent if you're only being paid 2-3% a year, this strategy works best with higher-yielding stocks that pay 4%, 5% or more.
Now, with there is never a surefire thing. I can't success with the "apple tree" strategy, or any other strategy. But one thing you can't deny is that every dividend you receive makes it that much more likely that you see a winning position.
Action to Take -- > And in a market that's keeping investors up at night, I can't think of a better way to make money without worrying over your investments every day.
[Note: I use the "apple tree" loophole in my personal. In fact, it was a deciding behind the majority of my Top 10 for 2013. One has raised its 33 consecutive . Another dominates its market... pays $3.40 in per share each year... and has returned 117% since it went public just over four years ago. In this special presentation, I'll tell you about all of our just-released picks for 2013 -- including several names and -- so that you can start profiting today. Click here to learn more.]
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