If these 20 stocks are in your portfolio, you’re at serious risk of losing money.
Since 2015, investors are flocking to dividend-yield stocks in the hopes that consistent or high yields will offset the pain of stock prices going up and down.
Those investors are setting themselves up for failure and disappointment. Here’s why:
Typical Income Investors use dividend stocks to supplement their income, and that makes sense because those stocks should carry less risk and more certainty (the dividend check is in the mail four times a year, right?).
In order to get any meaningful return on those dividend stocks, however, investors today have to plow hundreds of thousands of dollars into them.
Let’s look at a real-world example: These Top 10 Dividend “Aristocrat” stocks, touted by Wall Street and even Warren Buffet, LOOK like good, smart, safe investments.
And if you’re Warren Buffet and have a billion dollars, they would be; that’s because the combined annual yield on these 10 stocks is 3.6%.
Now, 3.6% on a billion dollars is a lot of money—$35 million, actually.
But on your $100,000 portfolio? That’s just $3,580 in annual income from so-called safe yield stocks.
That’s assuming you actually put $100,000 into these ten stocks.
To get any meaningful annual income, you’d actually have to invest more than $1,000,000 total across all ten stocks (and at that, you’re only getting $35,000 in income for the year).
Worse yet, that doesn’t account for stock prices going down—a mere 4% decline in these ten stocks wipes out your dividend gains; any further decline means you lose money.
And if you have a smaller portfolio, say $50,000, how on earth do you get any meaningful growth? Reality says you can’t.
The Other 10 Sucker Stocks
As an alternative to “safe” dividend yield stocks, investors also flock to High-Dividend Yield stocks. Sadly, they’re likely learning their lessons the hard way.
Yes, these stocks can pay huge yields… but at what cost to your money?
Let’s look at two groups of Dividend Sucker Stocks. First up, high-yield Partnerships and Trusts.
Yes, this group of five stocks pays you higher dividend yields than the Aristocrat stocks above…
This group pays dividend yields between 12% and 16%.
Of course, you’d have to be able to stomach the average 22% LOSS in capital to get those dividends.
So, you could generate more money, but can you handle LOSING 33% of the value of your stock holding? Probably not…
Let’s consider another group, the “Wonder Yield” stocks.
Now, this is more like it, right? Who wouldn’t want 20%–75% dividend yields?
Once again, that pesky little devil is in the details, because several of these are penny stocks, which could be here today and gone tomorrow (along with your money).
As a group, these five stocks are down 38% for the year (Atlas alone has lost 70% of its value):
There has to be a smarter way to get income without high risk—or without high returns disguised as high risk, which is exactly what you’re getting today with dividend-yield stocks.
High returns (or safe returns) are actually high-risk stocks in disguise.
Here’s a better way: It’s called the Perpetual Income Engine.
When you learn how the Perpetual Income Engine works, you’ll be able to create more income in less time, from fewer stocks with less risk.
You need to see this to believe that it can work for you, which is why I’ve created a complimentary, 4-part video training series for you.
Once you put the Perpetual Income Engine into action, the days of 2%–5% income from your portfolio are over. Instead, you could be armed with a simple strategy to get 25%–35% annual income from your portfolio…
…and have MORE time to enjoy that income.