Do you Know the Best Way to Build Your Wealth?
The secret to building your wealth over time is simple, buy revenue generating assets. Your home, car, boat, furniture, or gadgets are not revenue generating assets.
In fact these types of assets actually cost you money to own, think about your maintenance costs, insurance costs, and operating costs for each of these items. Revenue generating assets are assets that actually put money into your pocket, and the best revenue generating assets are those that increase the amount of money going into your pocket each year. My favorite type of revenue generating asset is a dividend-paying stock. These are stocks that pay you cash (dividends) just for owning them.
The best dividend paying stocks are those that increase their dividends year after year like these examples below:
Number of years of consecutive dividend increases:
- 58 years, Proctor & Gamble
- 50 years, Johnson & Johnson
- 50 years, Coca-Cola
- 39 years, Abbott Labs
- 29 years, Exxon
Dividend-paying stocks have a number of other advantages when compared to owning real-estate rental properties, or your own business:
- You don’t have to worry about hiring or firing employees
- You don’t have to worry about collecting payments
- There are no bad tenants to destroy your property
- There are no issues with having to keep inventory
- You don’t have to worry about theft
- It’s quicker to sell stocks, than to sell property or a business
Dividend stocks provide you with the best of both worlds, increasing revenue with very little overhead. If you’d like to grow your wealth, then investing in dividend paying stocks is the best approach. In a previous article I wrote about how to determine when to buy a stock.
Remember in order to grow your wealth, start investing in dividend-paying stocks sooner than later!
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