These Stocks Historically Outperform and Are Safer Than Investing in the Broader Market

“Gimme a stock,” my acquaintance demanded.

“Excuse me?” I replied.

“Gimme a stock. I need a winner,” he asked, a bit more softly.

When you’re in my business, people expect you to hand out winning stock picks like Santa on Christmas morning.

I explained that it wasn’t quite that simple. I didn’t know his risk tolerance, his goals, what his existing portfolio looked like… “I need to make some money in the market,” he interrupted.

I told him that if he really wanted to make money investing, I’d send him a copy of my book, Get Rich with Dividends, which explains how and why people should invest in Perpetual Dividend Raisers – stocks that raise their dividends every year.

These stocks historically outperform and are safer than investing in the broader market.

Since 1990, Dividend Aristocrats, which are S&P 500 companies that have raised their dividend every year for 25 years or more, have more than doubled the performance of the S&P 500.

These dividend raisers are up 1,924% versus 866% for the S&P.

Additionally, they’re safer. During down markets, dividend payers outperform stocks without a dividend by 1% to 2% monthly.

After sending him a copy of my book, I felt like I’d done this guy a favor and helped him on the way to financial independence.

Imagine my surprise the next time I spoke to him and he said, “I got your book, I didn’t read it. It’s too much work. I just need a winner.”

It’s as if the guy was homeless and I gave him a hammer, nails, wood and directions on how to build a house… and he said, “Nah, I just need someone to give me a house.”

The thing is, I can pick winners. Last week, I took triple-digit gains on three positions in two of my trading services.

In my Lightning Trend Trader service, which focuses on the healthcare sector, nine of 10 positions are up. The smallest gain is up 14%, and the lone losing position is down 1.5%.

Last week, subscribers to my Tactical Trader service took a 320% gain.

But those types of trading services aren’t right for everyone. While the gains may be enticing, the strategies I employ should be used only by those who have their long-term investments set up.

If you have a diversified portfolio that is invested for the long term or that takes care of current income needs – and if you can afford/tolerate shorter-term risk – then actively trading the market can be profitable and fun.

However, if you’re like the guy I referenced earlier who does not have his finances in order, being given one or two ticker symbols to bet on is one of the worst ways to try to make money in the markets.

Someone in that position can’t handle the risk of short-term trading. It will lead to more stress. And if the position doesn’t work out, it puts the person in an even bigger hole.

The expression “It takes money to make money” is accurate here. Someone who is well-invested for the long term can afford to take those risks that lead to big profits. But without that solid foundation, the risk is just too large.

I’m not doing myself any favors by telling you not to sign up for my trading services. But if you can’t afford the risk, I’d be doing you wrong by telling you that you should.

Create a diversified portfolio for the long term – one that is loaded with Perpetual Dividend Raisers – and you’ll be better positioned to take advantage the next time I, or anyone else, “give you a stock.”

As for my acquaintance… he’s still waiting for Santa.

Good investing,

Marc

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Source: Wealthy Retirement