If you listen to financial news networks, such as CNBC, you get the impression that financial experts are waiting for the future to reveal itself so they can guide investment decisions.
As I listen to CNBC, I notice that whenever a government report, or data point, or market metric is discussed, the commentary always includes words like uncertain, unsettled, and undetermined when discussing the possible effects of the item in question.
The feeling you get from listening to these discussions is that the experts need a little more information to accurately predict any future outcome.
There are a couple of problems with this expectation. One is that the opinions and forecasts change from expert to expert and from day to day.
Of greater impact is the fact that no one can predict the future. In the markets, what happened in the past rarely gives a good prediction of what the future will bring.
Investors who try to time the market almost always end up buying high and selling low. Those new to investing often don’t understand how volatile share prices are and how often the market falls into a bear market, down more than 20%. A 20% drop hurts when you look at your account values. A bear market occurs about every other year. There have been four deep market declines just since 2018.
I started my dividend-focused strategies because future dividend payments are predictable. Many stocks and ETFs pay stable— and even growing —dividends. They are a cash income you can count on.
My Dividend Hunter newsletter has a recommended portfolio of about 30 high-yield investments. The average yield is over 10%. Stability of dividend payments and the avoidance of dividend reductions are major focuses of my research.
When you invest for dividends and then reinvest the dividends you receive, your cash income will grow every quarter, quarter after quarter. For my subscribers, and possibly you if you are not one, the stability of a steadily growing income stream is a lot easier to implement and live with compared to putting up with the swings in the market.
The Dividend Hunter has been available for almost 12 years. I get comments from subscribers who joined during periods of market turbulence, such as we are now experiencing. They love the results in their brokerage accounts a few years down the road. It turns out that focusing on building a high-yield income stream will also grow your wealth.
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