Metamora, IL (PRWEB) August 21, 2012
A new website is available that provides ordinary investors seeking income a safe, growing income stream based on dividend paying stocks. It is http://www.dividendgrowthinvesting.com. The site has a model portfolio with a list of stocks and a monthly newsletter, along with lots of information about how to create income streams that keep ahead of inflation.
The author of the website, Dr. Robert Albers, a 25 year veteran of the securities industry, says that the search for income is critical, especially in today’s low interest rate environment. Whether the income comes from high-yield debt or safe low-yielding utilities, the income can be eroded by inflation. For individual income investors, inflation is the critical problem, compared to the issue of finding adequate yields.
Of the 11 categories of income securities, only three have a chance to grow their payouts at rates significantly greater than inflation: dividend-paying stocks, real-estate investment trusts and master limited partnerships.
Of these three, it is very difficult to predict the future growth of payouts from individual MLPs and REITs, although many advisors are trying their best. For individual companies, it is much easier to predict dividend growth rates from historical data on payout rates, financial health, management commitment to the dividend, etc. Nestlé, United Technologies, McDonalds, Johnson & Johnson and Coca-Cola are among those companies with financial metrics that reliably predict dividend growth rates of close to three times the rate of inflation.
The only trick is how to pick just those companies that look like those listed above. A secure retirement income can be created and inflation can be defeated with dividend growth techniques. According to the author, http://www.dividendgrowthinvesting.com does this on behalf of the individual.