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As the markets have changed over the years, income investing has too.
It’s not as easy to reap big dividends without investing huge amounts of capital.
Click here to find out how to maximize your income without huge amounts of cash.
If you depend on your portfolio for income, you might have noticed it just doesn’t pay as well as it used to.
The average dividend yield on the S&P 500 has been falling for decades, as you can see here:
Source: Multpl.com
After yielding nearly 6% in the 1950s and 1960s, it fell to 4% in the 1970s and is now yielding just 1.96%.
Click here to realize bigger yields – bigger than even back in the income heyday.
The funny thing is, the yield isn’t falling because dividends aren’t growing. In fact, the S&P 500’s payout is growing by nearly 9.9% annually.
Source: Multpl.com
The trouble is the nature of the stock market has changed over the decades.
Instead of the old-school industrial companies – the reliable dividend payers that used to dominate the S&P 500 — the index is now extremely heavy on technology names. And tech usually isn’t synonymous with dividends.
In fact, of the top five S&P 500 companies, only two pay dividends.
- Microsoft (NASDAQ: MSFT) – 1.5% yield
- Apple (NASDAQ: AAPL) – 1.8% yield
- com (NASDAQ: AMZN) – no dividend
- Facebook (NASDAQ: FB) – no dividend
- Berkshire Hathaway (NASDAQ: BRK.b) – no dividend
So, it’s not a case in which you can’t make a decent income by investing in dividend stocks.
It’s a case in which you don’t have as many companies to pick from and you need to invest more capital to maintain the same level of income.
The good news is our Mailbox Millionaire Income System will help you get your investment income to the level it needs to be.
It’s actually paying $1,175 every 20 days on average. And investors have realized yields of more than 40% . . . without taking on more risk by investing in crazy high yielders that might not maintain their payouts.
Click here to find out how to maximize your income.
Here’s to Profits,
Ben Shepherd