[TradeSmith Daily]( Inflation Is Attacking Your Wallet. Defend Your Money with These 3 Dividend Strategies.
Inflation may have “cooled” by falling from 9.1% in June to 8.5% in July, but I bet it doesnât feel like anything is cheaper yet. You might be especially feeling the pinch with the back-to-school season. If youâre helping your child or grandchildren with furnishing their dorm, furniture and bedding costs are up 14.8% since last July, and clocks, lamps, and decorative items cost 8.7% more. Iâm not holding my breath and waiting to see if things get better on paper. Hope isnât an investing strategy — but generating income through high-quality stocks is. Instead of watching your purchasing power erode, you can use dividend investing strategies in the battle against inflation. Here are three ways to turn your hard-earned money into even more money. RECOMMENDED LINK [Rare Financial Event Could happen as early as September 1st](
There is a rare event that could happen as soon as September 1 â and most people are totally unprepared. In the past this event has handed ordinary crypto investors the opportunity to make an incredible amount of money. Thatâs why when this multi-millionaire crypto analyst told us about this upcoming event, and the [$2 coin thatâs set to soar with it...]( We had to bring it to your attention. He believes that even just a $500 stake in this small coin could give you a huge payday because itâs set to completely disrupt a $30 trillion industry! The profit potential has blown me away. To prepare for what might be the biggest AND the last profit opportunity youâll see for a very long time, you need to hear what he has to say. Find out more for free by [clicking here](. Dividend ETFs
While I believe that you will make the most money through investing in individual stocks, I understand that some investors prefer investing in an exchange-traded fund (ETF). Buying shares of an ETF can cost less than buying shares of an individual stock, and it can help those who are risk-averse feel more comfortable with investing; an individual stock can have more price swings than an ETF. Searching through our system, I found that the Vanguard High Dividend Yield ETF (VYM) is in our Green Zone. VYM tracks companies that are forecast to have above-average dividend yields, which is an appealing proposition for some investors, as it saves them from doing research on what dividend yields could be above average. Its top five holdings are:
- JPMorgan Chase & Co. (JPM)
- Johnson & Johnson (JNJ)
- The Home Depot Inc. (HD)
- Procter & Gamble Co. (PG)
- Bank of America Co. (BAC)
Over the past five years, VYM has had an average yield of 3.05%, and it currently has a yield of 3.01%. Dividend Reinvestment Plans (DRIPs)
TradeSmith CEO Keith Kaplan [recently wrote about DRIPs]( and I thought it was a great idea to share this strategy with those who may be unfamiliar. When companies began offering stock purchase plans to their employees, they also started allowing their employees to use their dividend payments to buy more shares of the company. Eventually, that same benefit was rolled out to people outside the company — shareholders. With a DRIP, instead of collecting the dividend as soon as it is paid out, you can reinvest it to own more shares of a company. It doesnât matter if the dividend payout is less or more than the current stock price, because you will receive fractional shares. The benefit of this is that you are acquiring more shares of a company without having to add new capital into your brokerage account to buy them. By acquiring more shares, your dividend payouts will increase, and you can turn off the DRIP at any time to collect the payout as regular income. RECOMMENDED LINK [Market Wizard, who predicted negative indexes in 2022, shares a shocking new forecast](
He had 20 straight years of winning trades without a single losing year... That put his hedge fund in the top 1% of Barronâs rankings. He was featured in the popular trading book, “Hedge Fund Market Wizards, How Winning Traders Win...” Earning the coveted title “Market Wizard.” This year, he was one of the few experts who accurately predicted the 2022 stock market collapse... Telling a reporter in January, “All indexes will be negative for the year.” Almost immediately, the market tanked. The Nasdaq posted its worst start in history... And the DOW had its worst start since World War II. While most folks lost money... This trader showed those following his work how to avoid the carnage and profit from it. And now, for the first time ever, he is coming forward to share a brand-new forecast. In his debut video, Market Wizard Larry Benedict reveals how to make all the money you need... In any market... Using a single stock. [Click here to watch the video now.]( Monthly Dividend “Paycheck” Calendar
While most companies pay out dividends each quarter, there are some companies that pay out dividends each month. You still want to put each company through the ringer before handing over your hard-earned money, and you should never buy a company solely because it pays a monthly dividend. But if you find a few that you believe are good long-term investments that do offer monthly dividends, owning them is like building your own “paycheck” calendar. Just like how folks receive a certain amount of money each month when they are working, you can receive new income each month through monthly dividend stocks. One company that pays a monthly dividend and is in our Green Zone right now is LTC Properties Inc. (LTC). It operates as a REIT (real estate investment trust), which means itâs required to pay out at least 90% of taxable income to shareholders. LTC invests in senior housing and health care facilities, with half of its portfolio consisting of skilled nursing properties and the other half consisting of senior housing. Baby boomers are currently the second-largest population group in the U.S. With 69.6 million Americans between the ages of 58 and 76, there is an ongoing demand for the specialty services offered at the properties LTC invests in. The company operates in 29 states and has made 202 investments as of June, and it currently offers a dividend yield of 5.07%. Adding It All Together
What works for person A isnât always going to work for person B, and thatâs part of knowing yourself as an investor. While person A may love the idea of buying a dividend ETF, person B may prefer to buy a monthly dividend stock. And that is perfectly fine. From the simplicity of buying a dividend ETF, to reinvesting dividends, to generating income through monthly dividend stocks, I hope todayâs email was helpful in putting different investing ideas and opportunities on your radar. Remember — you donât have to sit back and watch your money erode into nothingness. You can take an active role in your financial future. Good investing, Mike Burnick
Senior Analyst, TradeSmith P.S. Thereâs a fourth way you can get more for your money with dividend stocks: You can put them to work with Keith Kaplanâs system for generating instant income in your account — in just four mouse clicks. [Click here]( to discover how everyday Americans can make instant cash from stocks, regardless of market conditions. Plus, watch as a complete novice demonstrates this amazing system (which has a 93.3% win rate) and makes $920 in under a minute. Best of TradeSmith
The chart below represents the best-performing open positions over the last two years, as recommended by our software.
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