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

---

Picking Mutual Funds to Outperform the Market

With over 6,000 mutual funds available, it may be tempting... Read More

Traders, Defend Against the Dreaded Death Spiral.

It has often been said that there is only two... Read More

Lies, Damn Lies and Mutual Fund Returns

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

A Good Fund Manager

Every Wall Street analyst, financial planner and broker will tell... Read More

Low Expense Ratio

One of the big advertising kicks today from mutual funds... Read More

Stocks & Oil, Sat Jun 18th, 2005

Both the stock market and oil prices rallied recently, which... Read More

How To Pick A Mutual Fund

Mutual funds by definition are a mixed bag of stocks,... Read More

The Secret Art of Backtesting

If you have not back tested your trading system, you... Read More

Getting Even

I know there are a lot of you out there... Read More

Precision Money Management

This article describes the model of a natural relationship between... Read More

Investment Discipline

One of the great "secrets" of successful people is discipline... Read More

Stock Trading - Daddy, Why Arent We Rich?

One Saturday morning, while he was sitting at his computer... Read More

Dividend Paying Stocks

I would like to share with the reader an article... Read More

When?

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

Outsourcing

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

Never Fall In Love!

Recently I watched my favorite football team lose a vital... Read More

Play another Day

Money management starts with protecting your capital, realizing profits and... Read More

Dont Buy Stocks based on P/E Ratio alone

I use the P/E ratio as a secondary indicator for... Read More

Online Broker Trade History Not Doing the Job

Let me start by saying that...Most online brokers do not... Read More

How Covered Calls Turned a Trader Around

Sidney felt sick as she looked at her latest OptionsXpress... Read More

Stock Market Course .... Day Trader Online Seminar ... Can You Generate Profits Trading from Home?

When it comes to stock market trading it PAYS to... Read More

Investment Lawyers and Trash Stocks

The trash business in its efforts to cook their books... Read More

Exchange Traded Funds Primer

Exchange Traded Funds (ETFs) are a group of passive index... Read More

Buying Mutual Funds

It looks like the market is ready to start up... Read More

Parachute Investing

Ever jumped out of an airplane? It's OK if you... Read More

Stock Insurance

You have a lock on your house. You have a... Read More

Market Success

Who are the successful investors?There are those who follow the... Read More

Jack and Jill

Jack and Jill went up the hill to fetch a... Read More

Long Term Investing

In his wonderful book, 'Multiple Streams of Income', best selling... Read More

Attitude Is [Almost] Everything

I often play a little game with myself when I... Read More

401K-itis

Are you one of those many people who dread reading... Read More

How to Make Big Money Safely in Stock Market

(1) Stock Market is Tough Place to Make Any Money... Read More

The Big Bad Bear

The big bad bear is stirring again. So far he... Read More