Cashing in on a Cash Cow Business made easy

Would you be interested in placing your
money into an investment that is a Cash Cow?
Month after Month you have a steady stream
of income coming in.  The best part of this
business is you don’t need to put your
blood, sweat, and tears into making it work.

No bosses to deal with
No upset customers to calm down
No selling anything
No overhead
No time schedule to be on
You don’t even need to drive anywhere

You just need an internet connection,
some knowledge and are in it for
the long haul. You can get into this Cash Cow
business by investing in Dividend Paying Stocks.

In last week’s blog, I introduced you
to this idea.  I showed you the advantages
and disadvantages that exist when you
put you hard earned money into this
investment vehicle.

This week I would like to dig a little
deeper and present to you the
1st of 3 characteristics of a healthy
dividend paying stock, so you can
further your research on making an
informed decision. In this piece I
will tell you what to look for in
the company’s performance of
paying out a dividend. Then I will
continue with two more blog posts
in the coming two weeks that focus
on the other two winning characteristics:
Strength of Balance Sheet and Cash Inflows.

Let me say one thing about investing
in the stock market.  Whether you are
new to dividend investing or you are
a seasoned pro always keep in mind
this idea:

YOU ARE NOT INVESTING IN THE STOCK MARKET,
YOU ARE INVESTING IN BUSINESSES.

Always, always, always keep this idea
in mind. It will keep you focused on
the fundamentals of finding quality
businesses that produce Cash Cow dividends.
Remember this idea until the day you
retire from the financial markets. You want
to own rock solid companies that have
stood the test of time.   Never, put your money
into terminally dead companies like
Eastman Kodak or Borders Book Stores.
No one uses film anymore and everyone
is buying e-books on the internet these days.

To avoid these old dogs in the market,
there is an old saying, “History will repeat itself”.
Well, when looking for a solid investment
in the stock market you want to look for
stocks with a consistent raising dividend payout.
This gives an investor a good idea of
emerging dividend trends, and also provides
insight as to the company’s overall
dividend philosophy and strength of the company.

The historical numbers don’t lie. A company
with a history of increasing their dividends
on a yearly basis is a good indicator that
the company will continue to do it in the future.
This behavior shows that the board of directors
has confidence in the future growth of their
businesses.   On the opposite end, companies
that have a history of dividend cuts are more
likely to make further cuts in the future
and something is telling you there are
problems ahead.

To find the dividend patterns of a company simple go to
http://finance.yahoo.com/ Then:

1. Type in a stock symbol.
2. Click the get quotes button.
3. Go to the MORE ON section on the left hand side of the page.
4. Click the HISTORICAL PRICES which is the third item down in blue.
5. Fill in a date range you would like to research.
6. Click the dividend only option.
7. Click the price button.

You will be given a history of the dates
the dividends where paid out and how
much the dividend was for.

To screen healthy dividend stocks:

Each company should have a long record
of continuous dividend payments. Look for
at least 10 years of annual increases
in the dividend. If the company has even
a longer period of increases in the
annual dividend than that is even better.
Ten years is the minimum number.
If the company has not increased
the dividend payout in the past ten years,
or has no dividend at all then take the
stock off your radar list.   Therefore, if a
company has increased their dividend
payout each year for the past 10 years,
then you have found the first winning
characteristic of a solid stock. The stock
is a good candidate to place on your
stock watch list as being a future
Cash Cow for you.

There you have it. Investing in the stock
market is easier than you think.

Stay tune next week as I discuss
the other two winning characteristics
of great dividend paying stocks in
the next two blog posts.

To learn more about how the stock market
can produce Cash Cow income for you, listen to the
live Money on Your Terms Show, this Thursday
evening from 8:00-8:30 pm PST on blogtalkradio.com.
You can catch past shows from the archives 24/7.

Feel free to submit questions. Send your questions
to: tim@moneyonyourterms.com. Please put “Ask Tim”
in the email subject line. I look forward to answers
your questions.

DO YOU STRUGGLE WHEN IT COMES TO MONEY?

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-Do you feel overwhelmed with your debt load?
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-Wouldn’t you like to secure your financial future once and for all?

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If you would like to learn more about the
way to build wealth with dividend paying
stocks then purchase my bestselling book,
Money on Your Terms, on Amazon.com.
I talk in depth about investment vehicles
that can get you on the road to achieve debt
free financial independence.

Remember when it comes to your money,
it’s on your terms and no one else’s terms.

Tim

This blog is for educational purposes only. All
readers are advised to conduct their own
independent research into investing in
individual stocks and financial markets.
Financial markets involve risk. Past
performance does not guarantee
future results. You should not rely
on any past performance as a guarantee
of future investment performance. Unit values and
investment returns will fluctuate.