I want to welcome you to the Dividends Forever Summit.
I’m Tim Plaehn… and I’ll be your guide all through this process. And as you’ll see, it’s only going to take 29 days to set you up with reliable, steady dividend income for life.
The first thing is to start letting your money work for you. Right away, I want to get you started on the path to financial freedom by investing in five dividend rich companies.
Look at like this…
It’s a one-time opportunity to build an entire passive income dividend portfolio from scratch. After years of research, I’ve selected five core companies that are the perfect way to kick start your investing life.
After you buy them, you’ll be well on your way to collecting a lifetime of solid, reliable and regular payouts. Fact is, multiple monthly dividend checks will be hitting your bank account like clockwork.
And I want you to do it NOW. Remember, if you don’t own any of these stocks you can’t collect any dividends. So as soon as you’re done reading this go online or call your broker and BUY these stocks today!
But don’t go and pour all of your money into just these five stocks… this is just the beginning of your journey.
Keep in mind, your goal as a new Dividend Hunter member is to build a balanced portfolio, so eventually you’ll want to buy all 20 of the investments on my recommendations list.
For example, if you have $100,000 to invest you could buy $5,000 worth of each of the recommended stocks. That way each would equal 1/20th or 5% of your portfolio.
We want to begin with these five high-quality companies and add to your investments over time. It’s like you’re building a house, you first pour the foundation… and build up from there. It’s the best way I know to accumulate wealth and income.
I picked these five initial stocks because they’re diversified across several business sectors in the “high-yield” segment of the market.
You see, our focus is on high-yield because we want to collect the highest paying dividends possible, while keeping a close eye on quality and safety.
You’ll find most of these picks will fall into a handful of categories, including Real Estate Investment Trusts (REITs), energy infrastructure, preferred stocks, and Business Development Companies (BDCs).
As your first step in the ‘Forever Dividends’ Masterclass, here’s what I want you to start buying right now…
Invest 5% of your total portfolio in each of the following companies:
Global X Russell 2000 Covered Call ETF (RYLD) uses a covered call strategy with the small cap index as the underlying assets. The RYLD portfolio owns stocks to mirror the Russell 2000 Index. The index includes the smallest 2000 stocks by market cap from the Russell 3000 Index, which covers the entire U.S. stock market. Market participants view the Russell 2000 Index as the primary index-tracking small-cap stocks. The fund pays variable, monthly dividends with a very attractive yield.
Arbor Realty Trust (ABR) is a mid-cap, $2.5 billion market capitalization finance REIT. The company is a commercial mortgage lender with a focus on making multi-family residential property senior loans. Arbor leads in its commercial mortgage niche (multi-family residential), and unlike many finance REITs, the company is on an excellent growth trajectory, which includes a growing dividend. Arbor Realty has evolved into one of the genuinely great finance REITs. Through the last year, dominated by the pandemic, the company increased its dividend for four consecutive quarters. ABR’s most recent quarterly dividend was $0.35 per share or $1.40 when annualized.
InfraCap MLP ETF (AMZA) is a fund that gives us investment exposure to energy infrastructure Master Limited Partnerships (MLPs). MLPs earn the majority of their revenue from the transportation and storage of oil and other energy products. MLPs place an emphasis on high current income and AMZA delivers the goods for us. The company recently declared a monthly distribution of $0.22 or $2.64 per share on an annualized basis.
Virtus InfraCap U.S. Preferred Stock ETF (PFFA) is an actively managed fund in the preferred stock sector. I like preferred stocks because they provide us with greater safety and generally yield more than common stocks. PFFA invests in a portfolio of over 100 preferred securities issued by U.S. companies with a market capitalization of more than $100 million, with a focus on income. The fund actively manages the portfolio, allowing it to yield 4% more than the largest passive index tracking preferred stock. PFFA also pays a fixed monthly dividend of $0.16 per share or $1.92 per share on an annualized basis.
Hercules Capital (HTGC) is one of three business development companies (BDCs) in the Dividend Hunter recommendations list. This type of company provides debt and/or equity financing to small and medium-sized corporations. BDCs operate under special legal and tax rules that make them pass-through entities. They do not pay corporate income tax and must payout 90% of earnings as dividends to investors.
Hercules is also just one of two BDCs in the BDC universe—and by far the largest, with the longest track record—that provides loans to companies sponsored by venture capital firms. The BDC provides debt financing for late-stage venture capital-supported businesses before they IPO or sell to a larger company. The company typically receives equity warrants that pay off when a portfolio company gets bought out or goes public. In contrast to many BDCs that were forced to slash dividend rates in recent years, the Hercules dividend has been level for three years and is 50% higher than it was coming out of the 2008–2009 bear market.
HTGC pays $0.39 per share quarterly, or $1.28 when annualized. This includes a supplemental $0.07 dividend that is included with the regular dividend. The supplemental dividend is generally announced at the same time as the regular quarterly dividend.
I’ll be sending you more details on each of these stocks in the coming days. But for now, I want to keep this as simple as possible.
I commonly see one thing that get in the way of successful investing — ‘paralysis by analysis’. If you overanalyze every investment and choice to see if it’s “right,” you’re going to miss out on the most important part: owning the shares.
Each of these stocks has been actively vetted and researched by me and I own each of them (as well as every other recommended Dividend Hunter stock).
So, head on over to your brokerage account and purchase your shares.
AMZA, PFFA, and RYLD pay out monthly dividends (which means you’ll collect your first check within 29 days, as promised).
And if you’re looking for income from monthly dividend-paying stocks, then be sure to read through the special report, The #1 Strategy That Turns $25K Into Income For Life which comes free with your subscription. This is a simple way to buy investments that pay monthly dividends.
To get started with the “$25K” plan, divide the cash between the monthly Dividend Hunter investments with the symbols: AMZA, PFFA, MAIN, UTG, and QYLD. Put them on automatic reinvest and watch the values and earnings compound.
A final thought on getting started as a Dividend Hunter: To respond to the challenges of income investing during the COVID crisis, I put together a list of recommended individual preferred stocks. This group of shares provides a unique combination of dividend safety and yield. An allocation of up to 30% of your income-focused portfolio into these shares should provide stability during stock market instability. You can find more information about our preferred stocks in the Portfolio section of the website.