How To Create Wealth In The Stock Market

First and foremost, an opportunistic strategy for creating wealth in the stock market is needed. And the opportunistic strategy for creating wealth in the stock market must have two ingredients, a plan and a goal. The plan must be a definite, concrete plan of investing that would profit you and your family for the rest of your lives.

This opportunistic investment plan you begin should not profit anyone else ? not a stockbroker, a mutual fund or a financial advisor. This means you have to have confidence in yourself and in your own judgment as to whether the investment plan you begin has merit. And this means that the investment plan would and should have already been proven to you!

This definite, concrete plan you begin for creating wealth through opportunities in the stock market must also have a goal. The goal should be clear and specific, and once your have made up your mind to achieve that goal, then go forward and make that goal a reality.

What are the opportunistic traits of a strategic investment plan built on concrete that would actually allow the shareholder to profit through all the turmoil of an up and down stock market? The secret for creating wealth in the stock market; no matter what direction the market is heading?

As in what appears to be the most difficult investment question of all to answer, the answer lies in simplicity itself? investing in those companies that have a historical record of raising their dividend every year. Whether or not you can take this statement of fact to heart is your own judgment call. But it is this opportunistic trait that can and will create wealth for you and your family for the rest of your lives.

A company's ability to raise its dividend every year, coupled with stock appreciation is a very powerful wealth creating formula!

I'm going to provide you with two examples, though there are many more, some with even better results. The two examples are from my book, soon to be published by American Book Publishing ? The Stockopoly Plan (where an investment plan and a goal are written in stone).

The first example would be a stock purchased in 1990, Comerica (CMA). What led to the purchase of CMA? ? In 1990 CMA had a 21 year history of raising their dividend every year. Today's CMA has a 35 year history of raising their dividend every year. This opportunistic trait in CMA stock has garnished a little better than a15 percent return a year, compounded annually (just by having the dividends reinvested back into the stock each quarter through those years ? I prove this to you in The Stockopoly Plan), for the past 14 plus years. Today's CMA stock just recently touched a new high at $60 dollars a share, with a dividend yield of around 3½ percent. In April of 2003 the stock was selling around $37.50 a share, paying a dividend yield of around 5% a year. Am I tempted to sell my position in CMA? Do I care if the stock drops from this lofty price back to $37 a share? Why should I? If the stock drops back to $37 a share, my dividends being reinvested back into the stock each quarter purchases more shares, and my dividend income from CMA simply and dramatically accelerates. I am also already prepared that if a buy-out offer is ever made for the company to reap the profits of owning the stock (as well as the possibility of another stock split).

The second example is (unfortunately) in my book, also. I say unfortunately because my book is in the final copy edit stage, so no one has had a chance to read and benefit from it, and since a buy-out offer was made for the stock last week or so, the stock will no longer exist (this means a rewrite for me, before publication). The company in question is the Rouse Co. (RSE), which was just purchased by General Growth Properties (GGP). Oddly enough, you'll find GGP in my book, also ? if you bother to pick it up. Anyway, that's neither here nor there - RSE, on the takeover bid jumped over $16.00 a share in one day! Whew! Why couldn't they have waited a couple of months until my book was released? RSE had the opportunistic trait of raising their dividend every year since 1993 and I was quite content with its performance through the years.

Well, that last paragraph blew my train of thought on this article. All I can think about at the moment is my rewrite.

I would like to take this time to explain something to you. I have never considered myself a writer nor am I a stock market professional. I am simply a man with 39 years of experience and a passion for the stock market, trying to share what wisdom those years have given me. When I sit down to write an article, I seldom have an idea on what I'm going to say. It was the same way when I sat down to write my book. I just meant to put down a few words on paper for my 18-year old son so he would have a sound, concrete plan for investing in those companies that make up the stock market (quite frankly ? I didn't want him to blow his inheritance). Whether you find merit in what I say, I have no idea. What I do know is that life is just too short to learn everything you need to learn by yourself, without the help of others.

There, now I'm satisfied with that ending!

For more excerpts from the book 'The Stockopoly Plan'

visit http://www.thestockopolyplan.com

Charles M. O'Melia is an individual investor with almost 40 years of experience and passion for the stock market. Author of the book - The Stockopoly Plan-soon to be published by American Book Publishing

---

Remembering TEOTWAWKI and Learning from It

Its only been about 5 years since we had major... Read More

Press Release Scams and Successes: Reading Between the Lines

Press releases are a means through which companies can keep... Read More

Boost Your Income With Financial Spread Betting

About 6 years ago I started to notice that certain... Read More

Creating a Financial Future - Putting Your Plan Into Action Part 1

This column has previously discussed "picturing the future that we... Read More

Investing In or Owning Drug Lab Properties

Clean Up (includes the insides and the outside of a... Read More

Commodities - The Next Big Wave of Fortune Building

Have you often wished you could have got in on... Read More

What is an Investor Ready Business Plan

A Business Plan, as all good entrepreneurs starting out in... Read More

Trading Is Not Rocket Science!

Despite what some people may lead you to believe; day... Read More

Emotions: A Traders Worst Enemy; Get Rid of Fear and Greed - Youll be Glad You Did

You hear it over and over and over in books,... Read More

Making It Second Nature

Not long ago I was laying on my son's floor... Read More

Shareholders Meeting Changing With Times

A significant number of corporations that settled accounts in the... Read More

Day Trading the SP Futures with Initial S/R and the NYSE TICK

For instance, if the market moves up in the first... Read More

Investing Offshore for Retirement

As an expatriate you are in a privileged savings and... Read More

Quit and Retire Three Years Earlier!

For most people, there is a direct correlation between how... Read More

Getting Started Investing is Often the Hardest Part

There are several reasons people give for not investing their... Read More

Just what is Arbitrage Investment?

In the simplest of terms, Arbitrage means to exploit price... Read More

An Investment Real Estate Strategy Unknown To Most Is A Negative Amortization Loan

If you want to make the most of your personal... Read More

Retirement ? Its Sooner Than You Think!! (Honestly)

Many people hear "retirement" and think- what? 401K? Roth vs.... Read More

A Secret Revealed: Why Most (Day) Traders Fail

The following perspective on (day) trading comes from my many... Read More

Going Against the Conventional Investment Wisdom

First of all, I want to give everyone the disclaimer... Read More

Profitability And Stock Turn Rate

The inventory of the typical store represents the largest single... Read More

Forex market offers opportunity and information

The forex market is what is called an international exchange... Read More

Trading For A Living - Part 2

In part 1 of this article I started to look... Read More

Rules for Simplified Employee Pension Plans better known as a SEP Plans

A SEP is a special type of IRA. Under a... Read More

The Basics of Tax-Free UK Financial Spread Betting

Financial Spread Betting (or Trading) offers a tax free method... Read More

Angels, Are They Real?

They're real, but few survive. High risk investing is dangerous... Read More

Why Do You Want to Become a Online Trader?

Motivational guru Tony Robbins teaches that the reason for doing... Read More

Invest or be Pink Slipped

Firing an employee seems to be easier and easier for... Read More

Economic Survival in the 21st Century - the Three Key Questions to Ask

In this "special report", I want to pose a few... Read More

Selecting Rules for Investing and Trading

There are three important differences between investing and trading. Overlooking... Read More

Day Traders and Swing Traders and Options? Maybe!

Typical day traders and swing traders look for stocks with... Read More

The Perfect Mutual Fund

The Perfect Mutual Fund is the one you build yourself!The... Read More

Makin The Sauce

Let's face it, you're on a roll. After getting down... Read More