These Dividends Will Still Be Flowing In 2050 “” And Beyond

These Dividends Will Still Be Flowing In 2050 “” And Beyond

Today we're going to discuss the secret to double-digit annual returns every year, forever, with secure dividend stocks.

It's simple but not easy. Here's the hint. We must seek out hefty recurring payouts from stocks with dependable recurring revenue!

It's one of the oldest business models there is, and it's hands-down the best setup for us dividend investors: customers pay every week, month, year or whatever, giving a company predictable“”and ideally growing“”profits.

They then send those profits our way as predictable“”and growing“”payouts! Plus, many of these firms buy back their own shares too. Which, in turn, makes each share we own more valuable on a "per share“ basis.

If this sounds straightforward, it is. The devil is in the details of this nuanced dividend strategy. We'll lock in our forever cash flows with three "must haves“ (besides a top-quality product that customers can't live without, of course):

You can give yourself an extra upside kicker when you buy recurring-revenue stocks just as they're being forged, as we'll see next.

Buy During This Rare "Window“ for Big Upside

For management, switching to subscriptions is a classic case of short-term pain for long-term gain: their revenue will drop as they "break out“ a sale over 12 months instead of