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It seems reasonable, then, even at fairly lofty market levels, to put a portion of one's assets into sound companies with a bit above average yield, then invest enough each year to guarantee growth of that income stream. For example, if one began with income from stocks of, say, $1000 a year, this could be increased through new investing or the companies raising their dividends, which tends to occur rather regularly among profitable corporations. Should this growth in income be at a rate of, for instance, 13% a year, that initial $1000 in annual dividends would become almost $40,000 ($39,150) after 30 years, i.e. a compounded doubling of one's income roughly every 5.65 years. Such income gains would be independent of the rise or fall of the total market price of one's portfolio, in that sense a risk-free standard by which to assess one's progress as an investor.
With the stock market's annual dividends now averaging only about 1.90%, I have looked for very low risk stocks that offer 2.0% or better yields as well as above average long-term total return prospects, excellent financial strength, and recommendations for their purchase from one or more well respected investment services.
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