One of the best stock market strategy is to invest in high performance dividend stocks, which means investing in securities that will produce large and growing dividends over time. In order to fully understand the strengths of this strategy, it is essential to understand what type of stocks should be invested, and to fully understand the concept of “cost-efficiency”. We’ll see in this article how a performance-based investment strategy works, what is “cost-efficiency” and how this notion will help you create increasing passive incomes over time, and to conclude we’ll give some examples of the returns that can be obtained after a few years with this strategy.

How to well invest in high performance dividend stocks?

Investing in performance stocks is to choose securities that will pay you more and more each year while increasing in value. If you choose poor quality securities, they will pay you maybe a big dividend today, but it is likely that they will pay you less tomorrow, because if the company is not extremely strong, it won’t be able to clear enough cash to pay dividends due. So it’s important to start by choosing stocks that pay you a reasonable and sustainable dividend in time. If you would like to know more about this topic, I invite you to read the following article explaining where are the best dividend stocks. ... 

On this site we talk about increasing our income through investment, but to invest, we must first put money aside! As we have seen in previous articles, some people manage to save more than $1000 each month with an ordinary salary, while others end up regularly in the red at the end of the month with the same level of Income. In this article, I will detail the methods and give you a plan in 8 steps explaining how to put money aside easily.

How to put money aside easily?

Let’s see quickly why in my opinion many people can’t manage to save in long terms.

Putting money aside is a bit like making a diet: it is an effort that lasts in time, which does not bring immediate satisfaction, which may seem forbidding, and for which it is necessary to make calculations.

Human brain always seeks immediate satisfaction and short-term pleasures, which is by nature poorly equipped. What prevents you from saving as much as you would like is your brain before everything else. Fortunately you can reprogram it by changing some of your deep beliefs, which will make the task of putting money aside easier. ... 

This blog deals mainly with investment but as everyone knows, in order to be able to invest, it takes money. And to have money you have to save. In this article we will see how to save $1000 per month by having a completely normal salary.

How to save as much as an expert

I deliver below the 3 essential elements:

I. Establish a balance sheet of all your expenses

Get started by drawing up a full balance sheet of their current expenses. If you don’t know where and how far your money is spent, you won’t know how to stop the bleeding. I knew people who ate every day at the restaurant thinking that spending $25 every lunch five days a week had little impact on their finances. They also bought twice a day of coffees at $2. At the end of the month it made more than $300 of expenses dispensable. You will see immediately these $300 appear if you simply take the time to make a balance sheet.

It is possible in many cases to arrive at a winning compromise that will be cheaper and improve your well being (a simple example: preparing in advance your own food will be cheaper and healthier than eating every day at the restaurant). ... 

Cash flow literally means ‘the flow of cash’. Behind this barbaric term lurks an extremely simple principle: it is simply a sum of money that will return to your pocket at regular intervals. For example if you buy a stock that costs $100 and pays $5 of dividends, your cash flow is $5. If you buy 100 shares, this gives you a cash flow of $500, which return to your pocket without touching your initial capital, and this at regular intervals.

It’s a way to increase your revenue from day 1 of your investment, and it doesn’t matter what kind of investment vehicles used as long as it pays you regularly (shares via dividends, bonds via coupons, real estate via rents). The higher the payment frequency is, the better.

Why do we need to focus on this way of investing?

Because the Cash Flow that goes right back into your pocket can be reused immediately to create a snowball effect.

For example: You buy a property that gives you a positive cash flow of $200 per month. You can use $200 to buy 2 shares at $100 each month which will bring you $5 each. In one year you buy 24 shares, a portfolio of $2400 will pay you itself 24 x 5 = $120 in the first year, that can be used to buy new shares and will bring you interest again. You will understand it allows you to reach interest on interests, which greatly accelerates your enrichment speed. ... 

There are many ways to invest in the stock market, and not all of them are effective. One of the best (and also one of the safest) strategies is to invest in solid companies that have steadily increased their dividends since 10, 20, 30 and for some even for more than 50 years in a row. This strategy has been successfully implemented for years in the United States by investors of all ages, whether for the purpose of obtaining additional income for retirement or for achieving financial independence.

These exceptional actions are often titled as “dividend aristocrats” or “dividend champions”. We will see in detail in this article why investing in growing dividend stocks is probably the best stock market investment strategy for a particular investor.

Rising Returns

Dividend-paying stocks offer historically higher returns than those that don’t. For proof, here is a graph illustrating the performance of these stocks between 1987 and 2015. You can see in green the “growers”, i.e. companies that have increased their dividends each year, and in dark blue the “payers”, i.e. companies that pay regular dividends (without necessarily increasing them). These two categories of stocks have a much higher performance than “Non-payers” (companies that don’t pay dividends) and “cutters” (companies that for one reason or another remove or decrease dividends paid). In terms of yield, just feel it with your open eyes. ...