The Only Sure Way I Know To Safely and Easily Generate Real Wealth

Do you know the one number to call to generate long-term wealth?

I’m not talking about the numbers you see on late-night infomercials for “get rich quick” investment strategies. I’m talking about a single number to dial… and the one short conversation every investor should have.

In five minutes, you can put one of the universe’s most powerful forces to work for you. You just need to dial that number.

[ad#Google Adsense 336×280-IA]I did it myself.

The number I called was 800-454-9272.

That’s not necessarily the right number for you.

But your number should be easy to find…

Let me explain…

Many online brokers offer an incredible benefit to their clients.

Many of them will – automatically and for free – reinvest the dividends you receive in the stocks that pay those dividends.

This strategy is called a DRIP – a dividend reinvestment plan. And it’s a great way to harness the “king” of all investment ideas: compounding.

By “compounding,” I mean making your gains generate more gains.

The key to this strategy is owning a high-quality dividend-raising stock. Longtime DailyWealth readers are familiar with these “World Dominating Dividend Growers.” They’re highly competitive, cash-rich businesses with growing dividends. Investing in these stocks allows you to compound your money at high rates over long periods of time.

We’ll use one of my “WDDGs,” software giant Microsoft (MSFT), as an example…

Let’s say you buy 100 shares of Microsoft at $30… And let’s assume the share price will grow about 5% a year. You’ll collect $80 in dividends this year.

Now let’s say you use those dividends to buy more shares of the stock… and the company continues to raise its dividend like it has for the last five years. By year two, you’ll collect $92 in dividends… which you can use to buy more stock.

If you keep putting your dividends back into shares of the stock, by year 10, your initial $3,000 investment will be worth $7,595. By year 20, it’ll be worth $35,322.

Buying great, dividend-paying companies, holding them for the long term, and reinvesting your dividends is the only sure way I know to safely and easily generate real wealth.

And it’s so easy to get started. All you need to do is call your broker. The number above is for Ameritrade, one of the brokers I use. I’ve listed a few more popular brokers below…

E-Trade – 800-387-2331
TradeKing – 877-495-5464
Fidelity – 800-343-3548

If your broker isn’t on the list, simply check online for the contact information.

It really is that simple. To take advantage of it, all you need to do is call up your broker or send a short e-mail and say, “I’d like to enroll my stock in your free DRIP.” (If your broker doesn’t offer free dividend reinvesting, seriously consider finding a different broker.)

Using free, automatic dividend reinvesting on high-quality stocks is one of the easiest ways you can start building wealth right now.

Just pick up the phone.

Good investing,

Dan

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Source: DailyWealth