This Billionaire Dividend 'Loophole' Is Available & Open To Us
While most stressed investors, like you and me are worried about the latest stock market crash, billionaires are quietly loading up on their favorite dividend paying stocks. Investing for growth and income, these “country clubbers” know how to 4X their yields without taking on any additional risk.
If we're being honest, who would you rather invest with?
Obviously, the rich guy or gal versus the hopeful retiree sweating out every stock tick.
Wealthy people collect assets that, over time, help them accumulate more and more wealth. Average investors, meanwhile, clutch to their stocks like they are lottery tickets. They buy shares and “hope” that they go up every minute of every day. Their hyper-attention often makes them sell at the worst possible moment (such as the bottom of a pullback).
So, what are the folks who don’t need the money holding today? In a 2019 survey of the “three comma” net worth club, we learned that 62% of the billionaires’ favourite stock picks paid dividends.
Most of these stocks are substantially better buys now than they were before the broader market C-19 global quake began.
We're not calling the market bottom, but we are selectively buying in at good prices, with very attractive dividend yields.
You too can now secure more dividends for your rands or dollars.
Here is a list of upcoming "high" dividend quality stocks, paying out next week (15 April 2020), to consider.
We are not recommending, or offering financial advise.
The above illustrates that if you buy any of the A Score stocks, you could passively earn between 6% to 12% (before Dividend Withholding Tax), with a small investment of between R22k to R18k, you are putting R1,200 in your pocket.
For about R103k in Absa, you will pocket R6,820 (before DWT @20%) with net dividend R5,456. And R1M., will give you R52,932 (after DWT).
Remember, these are interim dividends. Typically companies pay dividends twice a year. They may not pay dividends again this year because of C-19. But if they do, you can multiple these numbers by 2. Not bad for minimal work 🍸.
If there are any small children, or toddlers watching, this section is PG30 rated, and not recommended for faint hearted.
We not only take long equity positions, that take advantage of the higher dividend yields, we also employ an aggressive, and higher risk derivative strategy, where we can for example earn a 66% dividend yield.
This takes skill and experience, and very focused risk management strategy, and doesn't always turn out as planned.
We hope this post gives you insight, into the opportunity available to is in owning, quality dividend paying stocks, especially when they are about 20% off long term (52 week) lows.
Live Wealthy & Free.