Over the years of teaching trading, I think one question has come up more than any other: “What strategy is your main one?”
And while I teach everything from trend spotting to generating income with covered calls, naked puts, and more, the answer to this question is different.
It’s something I haven’t talked about often until recently.
The answer is dividends. Because when you pick a rock-solid stock that pays dividends, it’s like a double whammy.
You’re getting paid to own the stock… and you’re expecting it to continue going up. BAM! Double dipping.
In my lifetime, I’ve done a lot of things. I’ve owned and run businesses, I’ve been a market maker, I’ve run my own hedge fund, and I’ve been a landlord.
But nothing beats collecting cash for owning a stock.
Think about it.
When you own a business, you have to deal with employees, you have to deal with co-workers, you have to deal with vendors. If you own properties, you have to deal with tenants. If you’re leasing a storefront, you have to deal with everything involved in that.
And if you sell a physical product, forget it… Inventory, security, shipping… It’s a lot to think about.
Owning a stock takes all of that out of the equation.
And that’s one of the reasons I love dividends: It’s like owning a business, without all of those hassles.
In fact, when you own some of the top companies in the world, it’s like all those highly-productive, well-run companies are working for you!
So, the next time you’re thinking about where to invest your money, consider dividend stocks.
They’re not just an income stream; they’re a powerful way to build wealth over time.
Trade well,
Jack Carter
P.S. For the first time ever, I taught a handful of the golden rules I use for dividend investing. Check them out here.