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[S234]Secret Weapon R Intake

by Gen Wright, Gen

Anyone who has ever done any kind of article marketing knows that it's a very time consuming process. It takes a lot of time to write, and it takes an even longer time to distribute the articles. So it's kind of hard to keep the article marketing efforts consistent, especially for those who are working on a full time job.

A decent article takes about fifteen minutes to write for a prolific writer. But you have to agree with me, not everyone is a prolific writer. And, not everyone enjoys writing every day. So it can really be painful for those who hate to write to go into article marketing. Imagine have to sit down for hours each day, trying to overcome writer's block and coming up with something to write. That's pure torture. No wonder so many people give up on article marketing!

But there's a work around for those who hate writing. There always is an alternative solution, and that's working with those who love to write. No doubt it'll cost a few extra dollars to hire someone to write your articles for you. But as a business owner, you can't afford to get caught up by doing everything yourself. Some stuff are better left in the hands on others. You may then focus on things that you're better at naturally, like growing the business, and leave the nitty gritty of article marketing to whoever you're working with.

Now the title of this article is article marketing secret weapon. And this secret weapon, if you haven't already guessed, is hiring an article distribution and writing service provider to do all the work for you. For a few dollars, there are professional firms out there willing to do all the leg work for you.

Expert article marketers are already utilizing these secret weapons on an on-going basis. That's because they know that it's only a matter of time that they'll see their money coming back, over and over again. That's the greatest benefit of article marketing because once your links are out there, people will find you, learn to trust you, and eventually do some business with you. And in business, it's all about return on investment. If you're going to spend that few extra dollars to write and distribute an article, how fast can you earn that few dollars back? The faster you make back your money, the faster you see profits. It's that simple.

And article marketing works perfectly because it's very simple to understand and execute. Just write and submit, write and submit, and you'll see your back links grow and grow. Now the key to success is to do this on a regular basis. If you can do so, you'll be so far ahead of the competition that they'll be smelling your dust.

Remember, most people give up on article marketing because it's too tedious and time consuming. But now that you have your secret weapon, I'm sure you won't be the one giving up.

Dividends are stocks? secret weapon. Studies show that dividends account for up to half of the total return of the stock market over long terms, a surprising fact considering how little publicity they get. There is no "Dividend Index" or anything like that which gets reported every day like the Dow and the NASDAQ.

Let's look at some facts about dividends.

? Not all stocks pay them. The payment of dividends is a discretionary decision made by each company's management and Board of Directors.

? But for companies that do pay them, dividend policies tend to persist. A company with a history of paying dividends will rarely abandon that policy. Many companies have been paying and raising dividends for decades, and there is no sign that they will stop.

? Dividend-paying companies tend to be larger and older companies, with well-established cash flows that fund the dividend each year. Thus, they tend to be companies that are more stable, safer, and less volatile. Many of them are quite simply cash-generating machines. They share some of that cash with you by paying it out in dividends.

? At the current maximum Federal tax rate of 15%, dividends are the most tax-advantaged form of income available. Better than your salary and better than bond interest (both of which are taxed at your marginal tax rate, which is usually higher than 15%).

? The best dividend-paying companies often provide significant potential for price growth on top of their dividends.

But the best thing about dividends is that your yield will often rise over time. Compare this to the fixed yield that bonds pay. This rising-yield phenomenon, to me, is the most intriguing aspect of dividend stocks.

How does the yield rise? It happens when the company raises its dividend. Many dividend-paying companies have a history--an implied policy--of increasing their dividend regularly. Often this is done in line with their earnings growth each year. So even a company with modest annual earnings growth of, say, 10% per year may increase its dividend 10% per year too. (In your job, how often do you get a salary increase of 10%?)

The increased dividend increases the percentage yield on your original investment. The math is simple. Say you purchase a $100 stock when its dividend yield is 3%. You buy 100 shares for $10,000, and the stock pays you dividends of $300 that first year. The next year, the company's earnings increase 10% and the company follows its usual practice of raising the dividend to match: Up 10% to $3.30 per share. You get paid $330. Your yield--calculated on your original investment--has jumped to 3.3%.

Note that it no longer matters what "current yield" is printed in the newspaper. That is based on the stock's current price, whereas your yield is based on what you invested. If the stock's price kept pace with its earnings growth (which is often the case), the current yield will still be depicted as 3%--but that only applies to new buyers, not to you.

If the 10%-per-year scenario keeps happening, in Year 3 your yield will be a little over 3.6%, in Year 8 it will have doubled from its original 3% to 6%, and in Year 16 it will be paying 12% on your original investment. That 12% yield exceeds the annual long-term return of the stock market itself, and far exceeds the fixed return available from any investment-quality bond.

Thus we see why dividends are stocks? secret weapon. They are underpublicized, yet provide about half the total return of the market with more safety. And they go up.

Unfortunately, ??income?? is often reflexively associated just with bonds. Many investors who are looking for income overlook the income available from stocks. But as we have just seen, stocks? income potential often exceeds that of bonds. The Sensible Stock Investor recognizes this and takes advantage of dividend stocks in his or her portfolio.

Now, of course, all these good things do not come without a little risk. Whereas most (certainly not all) bonds are relatively risk-free, stocks always have market risk attached. But given the large, mature, stable nature of many dividend-paying companies, that risk is relatively small. Dividend payers tend to be less volatile than the market as a whole, and certainly less than most high-growth stocks.

By the way, a high yield is not the only criterion for selecting good dividend stocks. A well-rounded approach will turn up stocks that not only have decent dividends to begin with, but also also the potential for price appreciation. In other words, the Sensible Stock Investor keeps his or her eye on total annual return--with a strong dividend component.

Happily, with the end of the bubble deflation in 2002 and the passage of the maximum 15% Federal tax rate on dividends, companies themselves--not only investors--are rediscovering dividends. More and more companies are paying them, and many companies which already were paying them have strengthened their payout rates. Overall, it is a good time to be a dividend investor.

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Both Gen Wright & David Van Knapp are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Gen Wright has sinced written about articles on various topics from Terrier Dogs, Acne Treatment and Lose Weight. Darren Chow is a full time article marketer. His latest project is a where bloggers can promote their own blogs by submitting articles. Gen Wright's top article generates over 1220000 views. to your Favourites.

David Van Knapp has sinced written about articles on various topics from Finances, Web Development and Finances. Learn about a comprehensive stock approach that includes strategies for finding good dividend stocks. Sensible Stock Investing: How to Pick, Value, and Manage Stocks is a guide for the individual investor. Learn more about it at. David Van Knapp's top article generates over 9900 views. to your Favourites.