I counted twice, just to be sure.
That's the amount in "daily paychecks" -- more commonly known as dividends -- I've received from my investment portfolio in the past 12 months. That total comes to $1,358 a month. Cash.
I'm not telling you this to brag. I'm telling you because I firmly believe that my system of investing is hands down one of the best ways to invest in the stock market.
Whether you're 28 or 88... whether you're a millionaire or just getting started... and whether you have an MBA or didn't graduate high school... you can make money using this strategy.
The best part is all you need is 10-minutes a month. That's it. You could be earning hundreds, if not thousands of dollars in extra income, in literally less time than it takes you to shower in the morning...
If you're a regular StreetAuthority.com reader, then you've probably figured out by now that I'm talking about the Daily Paycheck strategy.
Simply put, the goal of this strategy is simple. By investing in a basket of high-quality income stocks that pay dividends regularly, I've successfully built a portfolio that pays me a dividend for every day of the year. In October alone I collected 34 dividends for a total of $1,332.
To be fair, my results are based on a starting position of $200,000. But that doesn't mean you need that much to be successful using the Daily Paycheck system. My results are fully scalable. So whether you have $500,000 or $5,000 to invest, this style of investing can work for you.
The secret to this system lies in something I like to call "the Dividend Trifecta." Put simply, The Dividend Trifecta is a three-part approach to dividend investing that multiplies the effectiveness of every dollar you invest.
For example, one approach in The Dividend Trifecta involves investing in what I like to call "Fast Dividend Growers." These are companies that are increasing dividend payments up to 15% a year.
The logic here is simple. When you invest in companies that are steadily growing their dividend year in and year out, then you're buying a dominant business with strong cash flows whose dividend payment you can rely on -- making them the perfect fit for my portfolio.
Unfortunately, these stocks are pretty rare. Standard & Poor's has a Dividend Aristocrats Index that's made up of stocks that have increased dividends for 25 years or more. Only 42 stocks made it into the index at last count.
The good news? There are a number of companies that have consistently raised their dividends for years, but simply haven't made it the full 25 years... yet.
By my estimates, there are about 100 securities I'd say fill the bill as a way to grow your income.
And if you buy their shares and let these securities pay you over the long term, then you can earn some enormous dividend yields.
Take a look at one of my portfolio holdings, Magellan Midstream Partners (NYSE: MMP), for example...
When I added Magellan Midstream Partners to my Daily Paycheck portfolio in February 2010, the master limited partnership paid an annual dividend of $1.42 per share. Trading at a split-adjusted price of roughly $21 per share, any investor could have picked up the stock and locked in a solid 6.7% yield.
However, Magellan Midstream Partners increased its dividend 11 times since then. Today it is paying $1.94 per share. That's a 36.6% dividend increase in less than three years. That gives anyone who bought the company back when I recommended it a 9.2% yield on their original investment.
This company could grow its dividend for years to come. If it sustains its 11% annual dividend growth rate, then in 2015 (just three years from now) the company could pay $2.65 per share in annual dividends. That's a 12.6% yield on your original 2010 investment.
Meanwhile, from the time I recommended Magellan Midstream Partners through the end of October, the shares have appreciated 114% -- including dividends, my subscribers have enjoyed a total return of 144.6%.
Action to Take --> That's the power of investing in "Fast Dividend Growers," and it's why I've considered them as one of the main elements of "The Dividend Trifecta." When you invest in fast-dividend growing stocks, you're buying companies whose stable dividends can pay you steady income -- regardless of market conditions.