3 Dividend Stocks Paying 10% to 16% That Can Fund Your Retirement


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ACCELERATING DIVIDENDS, ETFS, REAL ESTATE INVESTMENT TRUSTS (REITS)

My 36 Month Accelerated Income Plan is a guide for individuals who see retirement looming in a few short years and who want to build up their retirement savings as much as possible. The plan provides a systematic approach that can be started at any time and does not require timing the market. A recent subscriber question about picking three stocks to start her 36 Month Accelerated Income Plan was the catalyst for this article.

The plan is based on using dividend reinvestment of high yield stocks. After a decade of very low interest rates from most types of income assets, the investing world has lost touch with the power of compound growth when the yields are high enough. The 36 Month Accelerated Income Plan uses high yield stocks and automatic reinvestment of dividends to quickly grow the income potential of money you have set aside for income in your retirement years.

One example used in the 36 Month Accelerated Income Plan shows how a $150,000 starting amount could be producing a monthly income of $3,300 after just three years. That’s $39,600 in annual income. Here are some of the success factors that you need to keep in mind and employ.

  • Higher yield is better. Compound growth is powered by yield. For example, $10,000 compounds to $11,600 in three years at 5%. It grows to $13,450 at 10%, a 115% gain in growth.
  • The dividend payments from the selected stocks must be expected to continue for the three years and longer. This is the hard part of the strategy, and you may need to change stocks if individual company business results change.
  • The plan focuses on compounding the income stream, not the account value. This means that temporary share price drops are a good thing, allowing you to buy more shares with the reinvested dividends when share prices are down, boosting your income at an even rate.
  • The focus will be on the dividend income growth, which will become retirement income in the future. That income will compound even faster than your account value will grow.
  • You can boost your retirement results by making regular added investments to your high-yield stock holdings.
  • Continue....

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