The POWER of a Proven Stock Investment Plan

When you invest in the stock market for ever-increasing cash dividend income, verses trying to make a buck in the stock market, your mindset will change. There will no longer be a fear of losing money in the stock market. With the right type of investment plan and investment choices all worries of losing money in the stock market will disappear.

The mind set that will emerge when you adopt a proven income producing investment plan in the stock market will create an air of worry-free concern about the up and down turmoil of a volatile stock market. Whether your investment portfolio is rising or falling won't make a difference. Your income producing investment plan will prove to continually increase your cash dividend income from all your stock market investments, on a weekly, monthly and yearly basis.

The use of a proven investment plan will allay all fears about investing in the stock market. Why? Because the proven investment plan is based on two very simple and fundamental investment strategies ? investing in only those companies that have a historical record of raising their dividend every year, and having the dividends from those companies rolled back into more shares each quarter, until retirement.

By investing in only those companies that raise their dividend every year you will become confident and assured of each stock market investment. And by having the dividends of each company rolled back into more shares each quarter you automatically dollar-cost average into the company's stock throughout the years.

What happens when you invest with this mind set ? investing for ever-increasing cash dividend income through companies that raise their dividend every year, rather than trying to make a buck in the stock market?

1. You begin investing in only those companies that have a proven record of rewarding their shareholders every year. Every dividend rolled back into the company's stock every quarter increases the amount of shares owned, and therefore, every dividend from the company will be higher than the previous dividend. After 10 or 15 years, you'll find that that cash dividend begins to add up!

2. The cash dividend income will increase every quarter, no matter what the stock price of the company is at any given time in the market place. As a matter of fact, once you have owned the stock for 10 or 15 years, you'll be torn as to whether you want the stock to go up or to go down, since a lower stock price will allow your dividend reinvestment to purchase more shares, thereby accelerating your cash dividend income.

3. The rising dividend every year will help off-set the risk of inflation. This will be especially helpful when you retire and start having the dividends sent home, rather than having the dividends rolled over into more shares. During the retirement years, when the dividend is being sent home to help ends-meet, the price of the stock doesn't matter. Your income increases every year anyway, because every company owned has a program of raising their dividend every year.

4. After retirement, if your account is worth $250,000 one year and due to a severe drop in the stock market, the net value of your securities drops to $200,000, the net worth of the securities at $200,000 would still generate a higher cash dividend income. The net worth of your holdings means little, if the income produced from your holdings is increasing every year, no matter what the net worth. That is the partial reasoning behind investing in only those companies that raise their dividend every year. The other reason is to eliminate risk in investing in the stock market. A company that has been raising their dividend every year MUST be doing something right or the money wouldn't be there to pay their shareholders ever-increasing cash dividends.

5. The lower the stock price goes, after your initial investment, the higher the dividend yield of the stock. This is extremely powerful and beneficial for you when you are still having the dividends reinvested. Reinvesting those dividends at a lower stock price accelerates your cash dividend income. And if you are in retirement and no longer investing in the stock, the lower stock price does not affect your dividend income at all. The cash dividend income will still increase every year due to the company's program of raising their dividend every year.

As time goes on using this type of investment plan/approach you will discover that by reinvesting those ever-increasing cash dividends, coupled with stock appreciation is a very powerful wealth creating formula!

For more excerpts from the book 'The Stockopoly Plan ? Investing for Retirement' visit: www.thestockopolyplan.com

Charles M. O'Melia is an individual investor with almost 40 years of experience and passion for the stock market. The author of the book The Stockopoly Plan ? Investing for Retirement, published by American-Book Publishing. The book can be purchased at: http://www.pdbookstore.com/com files/pages/CharlesMOMelia.shtml

---

Buy Low - Sell High

Now where have I heard that before? I know. It... Read More

Your Job

There are so many kinds of work that needs to... Read More

Is The Bear In The Cage?

For the last few weeks we have seen the stock... Read More

Investing in the Stock Market

From the book 'The Stockopoly Plan' by the author Charles... Read More

Trading Systems

To become a successful trader you must have some kind... Read More

Outsourcing

It's about time someone spoke the truth concerning outsourcing. The... Read More

When?

When will the stock market stop going down and start... Read More

Money, Insanity and Wall Street

Money: the most charged word in the planet. It means... Read More

?Fears Only Enemy Is Action?

What a great statement!I just heard someone use it in... Read More

Trading Stocks ?Never Forget About A Past Trade

We all know that emotions control every decision that an... Read More

Starbucks Stock is Up

Starbucks earnings are up again and so is their stock... Read More

Oil Stocks CHK WLL - What Is Their Worth?

(1) CHK stock price $16.74, NAV $32.5CHK is my favorite... Read More

What is a Trading Plan ? and Why You Need One?

How do you make money without picking tops and bottoms?I... Read More

Good News?

As the man said, "I've got some good news and... Read More

Online Investing & Stock & Share Trading: 4 Reasons Why Most Online Investors & Traders Go Broke

Are you attracted to the idea of being in control... Read More

Will the Stock Market be Lower in October?

The stock market often closes a week in the middle... Read More

Stocks: Understand What You Buy!

"There is nothing more frightful than ignorance in action!" Johann... Read More

Shadow Bull

As one of my regular readers you know I have... Read More

Planning Your Dive and Diving Your Plan ? Trading!

A colleague of mine just returned from a scuba diving... Read More

Investing in Stocks and The Game of Monopoly

To begin, you might look at playing the stock market... Read More

Paddle Your Canoe

At some time in your life you have been on... Read More

Economists #2

Economists know more about how the fragments of society work... Read More

Zero Sum Game

Most people think the stock market is a zero sum... Read More

DIY Portfolio Management

Exchange Traded Funds (ETFs) are growing. Investors are choosing low... Read More

Rebalance And Diversify

The stock market has not been very kind to your... Read More

Stock Loans

Hedge current portfolio positions and gain access to capital resources... Read More

Lies, Damn Lies and Mutual Fund Returns

How many times has this happened to you? You're at... Read More

Stock Market Investing: Knowing When (and when not) to Sell

One of the greatest challenges of investing in stocks is... Read More

How To Buy And Hold

One of the most believed bits of conventional wisdom from... Read More

Analyst Reports

When you become interested in a stock or mutual fund... Read More

Why Investors Use Financial Planners

Do you have a financial planner? Does one of your... Read More

KISS Formula

There are formulas for just about everything, but it has... Read More

Inertia

One of the basic laws of physics is that a... Read More