- Hi, folks, I'm Larry Kudlow.
For decades, “King Dollar” has been the symbol
of American prosperity and success around the globe.
No matter where you went,
from the deepest jungles of the Amazon
to the driest deserts of Saudi Arabia
to the socialist wreckage of Venezuela,
everybody worshipped at the altar of King Dollar.
If you had greenbacks in your pocket,
you know any goods and services could be yours.
For 100 years,
the dollar has been the single most powerful,
most stabilizing monetary force in the world.
It's the reason that throughout my career,
whether working at the Fed, in the Reagan administration,
as chief economist at Bear Stearns,
or, most recently, as an economic adviser at the White House,
I've always advocated for a “strong dollar” policy.
As my close pal Steve Forbes has said,
"No great country has a weak currency,
and no great, lasting economic boom
has ever come from a cheap dollar."
And that's exactly right.
You can never devalue your way into prosperity.
Americans deserve a strong, reliable dollar.
They deserve to know that the money they work for
isn't gonna shrink in their pocketbooks and wallets.
Yet, like most Americans,
you've probably noticed a disturbing change.
Perhaps you saw it first at the grocery store,
or at the gas pump,
or when you went to buy a car or make an offer on a house.
Prices everywhere are rising.
The USDA recently reported that grocery store prices
saw their biggest rise in a decade in 2020.
Gas prices jumped from $2.20 in early 2020
to $3.15 per gallon.
That's a one-year increase of nearly 50%.
We've seen record prices on lumber, iron ore and copper.
Before commodities finally came back to reasonable levels,
steel, corn, soybeans and wheat
also hit their highest level in eight years.
The cost of a new car is at a record high.
$41,000 used to get you a luxury car;
now it's the average price of any car.
Used car prices, too,
recently saw their biggest monthly price gains
in at least 68 years.
Home prices recently jumped the most they have
in more than three decades.
We've seen reports that many buyers are running into issues
finding properties they can afford.
So simply put, Americans are worried.
Increasingly, they're wondering,
how am I going to pay my bills
when the cost of everything seems to go up every month?
How am I going to afford to pay a half a million
or even $1 million in some markets for a middle-class home?
And how am I supposed to prepare for retirement
when I may need millions of dollars of savings
just to ensure that I can cover the tab?
These are the really tough questions that must be answered.
Americans deserve answers.
The threat of runaway inflation and higher taxes
could create a major retirement crisis.
George Mannes, senior editor of AARP The Magazine, says,
"Those on Social Security are very worried."
He's recommending retirees skip out on vacations,
potentially downsize their houses.
And that's why we're here today.
We're worried about massive federal spending,
permanently higher inflation, huge tax hikes,
and the demise of King Dollar.
Today we're going to explore how to overcome these obstacles
to prosperity and healthy retirement.
And that's why I brought in
one of the great financial experts in America today,
my friend Marc Lichtenfeld.
Marc is the founder of Wealthy Retirement.
That's an organization dedicated to helping Americans
build a secure, financially independent life.
His e-letter, also called Wealthy Retirement,
now has hundreds of thousands of followers
all over the world.
You might've seen him on my network,
Fox Business, or in the Wall Street Journal or Barron’s,
or U.S. News & World Report.
He's the bestselling author
of Get Rich with Dividends,
which won the Institute for Financial Literacy's
Book of the Year Award
and has been translated into multiple languages
and published all over the globe.
In fact, for everyone watching,
you'll see how to get a complimentary hardcover copy
of Marc's book coming up.
I've read it, it's excellent.
You will want to share it with your kids and grandkids
after you read it.
But more importantly,
today Marc is going to share something special with us.
He's going to share with us what he says
is the single greatest path to financial independence,
a solution that makes sure that no matter how bad
runaway inflation and taxes and all the rest might get,
you may not ever have to worry
about running out of money in retirement.
The solution he is going to show you could create
what two finance professors call
“a never-ending income stream.”
They say it could lead to financial independence for life.
Well, is that true?
Well, I'm going to ask Marc to prove it today
during this whole program.
Look, I'm the eternal optimist.
When I see a big problem, I look for the way out,
a solution.
Now, I'm going to put Marc through his paces,
make sure his investment ideas really are the solution,
because Americans right now need solutions,
and our current leaders aren't providing them.
So if you have worries about the future, stay with us.
Our mission is to help you reach that goal
of financial independence for life.
And with that in mind,
I'd like to introduce you to my very special guest,
my pal Marc Lichtenfeld, who I'm confident
will give you the solution to prosperity
and a healthy retirement.
- Thanks having me, Larry.
I think the question you're raising
is the most important question facing Americans today.
Is this inflationary explosion in prices temporary,
or is it something that's going to permanently continue?
And I know,
hearing from all of my followers
and Wealthy Retirement people, people are really concerned.
The rising costs they are facing every day
are leading to a lot of sleepless nights.
And if inflation moves up just even a little,
it's gonna get a lot worse.
Consider, if inflation reaches just 7%,
you will need almost twice as much money
to retire in just 10 years,
and if it goes even higher,
it could get even worse.
So I've made it my mission to give people an answer.
So what I'm gonna share today is the single best path
to secure independent retirement,
even in the face of major challenges ahead.
- Marc, I gotta tell you, there's a lot to be worried about,
but there are some positive signs.
Economy looks pretty good, maybe booming.
A year after the pandemic began,
we saw retail sales up 50%, car sales up 90%,
clothing up 145%, going out to eat and drink up 116%.
People are spending money.
But the primary concern I have is that the Fed
isn't cutting back on all their free money.
In fact, it keeps reaffirming
the zero-percent interest rate free money,
the billions in bond buying.
The Fed is too cautious to cut off the stimulus,
even though the price inflation
is obvious to anybody looking.
I mentioned all the record prices we've seen on cars
and groceries, gas and commodities.
Anyone who has been in the housing market
knows all about inflation.
- It is wild, real estate agents tell people
to not even bother putting in an offer at the asking price.
It's above asking,
or you're just wasting your time.
Now, look at this boring 1,800-square-foot house
near where I used to live in San Francisco.
Its estimated price is $2 million,
and the estimated rent is $5,000 per month.
Now, that's San Francisco,
the most expensive housing market in the country,
but what's scary is that this price inflation
is hitting everywhere.
in Boise, Idaho,
the average home price rose $100,000 last year.
In Missoula, Montana,
the median sales price is up $130,000. It’s everywhere.
- Exactly.
Now, this is what extra-large inflation really looks like.
Now, it's possible this could all be temporary.
I mean, I actually think that post-pandemic recovery
has led to one-time price spikes and supply shortages
that will heal through market forces.
However, I also think at least half of the new inflation
is a function of excess government spending
and the Fed creating too much free money,
and that could be a long-term inflationary problem.
During the pandemic,
the U.S. budget deficit grew by trillions
in just six months.
The U.S. deficit is set to hit $3 trillion in 2021.
And we're paying for much of this
by cranking up the printing presses.
I mean, in 2020 alone,
the M2 money supply grew by $4 trillion.
That's the largest single-year increase since World War II.
The Fed has been pumping nearly another $5 trillion
into U.S. Treasurys,
and another $2.4 trillion into mortgage-backed securities.
- And so far, the Fed has shown no signs of stopping.
It recently affirmed that the zero-percent interest rates
could last until 2023, and let's face it,
likely a lot longer.
- Yeah, it's really playing with fire,
there's no question about that.
So for regular people out there,
the threat of much higher prices
is definitely, definitely there, it could even get worse.
Now, it may not happen.
The Fed could come to its senses,
but I have my doubts, and here's why.
Way back when I was a toddler
working in the Reagan administration (that’s a joke,
but there's some truth to it),
we put caps on federal spending.
Nowadays, it's a free-for-all.
Even with the economy roaring back,
the Fed is still pumping in
more than $100 billion every month,
and the federal government is pouring on the stimulus too.
You've got the $1 trillion-plus infrastructure bill,
which is just an appetizer,
and then you've got
another $3.5 trillion budget deal,
which is actually gonna be $5 trillion
without the gimmicks,
and that is loaded with massive spending
on every pet project under the sun.
Huge cash giveaways to people who aren't working,
and, more significantly, massive tax hikes
on businesses and investments.
Now, with this plan in place,
it's often more lucrative
to stay home and collect unemployment
than to actually go to work.
Some people earn more than $44,000 a year this way.
Even crazier is that the president said
this plan will reduce inflation.
Get it, more spending lowers inflation?
Well, I don't think so.
I'll give him credit for optimism.
But how does pouring trillions of dollars into the economy
and paying people not to produce
when prices are already soaring lead to reduced inflation?
Doesn't really add up, does it?
How are you gonna tell that to regular Americans
who are paying nearly a hundred bucks
to gas up their trucks for work
or can't afford to buy even a modest home
for less than a million bucks,
or who are spending $300 at the grocery store just to eat?
For people concerned about retirement,
this is scary, difficult stuff.
- And it is scary.
But remember, we do have a solution coming up,
one that will give Americans a real answer.
It's a way to create a never-ending income stream
that could deliver financial independence for life.
But before we get to that,
you touched on the one thing that scares me the most.
Some of the tax proposals on the table
are going to be big trouble
for people trying to save for retirement.
- Yeah, OK, right on that.
This is really a key point.
Now, to begin,
the nonpartisan Tax Policy Center did a study.
It found that about 75% of middle-income Americans
would pay more under the coming tax plan.
Now, follow me on this, please,
because one of the big changes is the corporate tax hike.
Now, few people may realize this, but under the new plan,
our tax rate would actually be higher than China’s.
That's not good.
And follow me here, please.
Seventy percent of the corporate taxes
actually end up being paid for by working people,
because the companies pass the higher taxes on
in the form of higher prices to consumers.
By the way, lower investment returns.
Here's the point, think about this.
Higher taxes equal lower profits;
lower profits mean less money for wage increases
for the blue-collar workers;
lower profits mean less money for business spending
on new equipment and technology
that would improve productivity.
And lower profits mean lower investment returns
for the stock market and your retirement accounts.
That's why the whole negative impact
on ordinary working folks and middle-class folks
will be devastating.
Real wages could plunge; so could productivity.
And that's what I fear may happen.
- My biggest concern
is the plan to hit people with higher capital gains taxes.
Now, there have been suggestions that
we should start taxing unrealized gains.
- Yeah, this is really scary.
By the way,
in the whole history of the income tax, going back to 1916,
we've never taxed unrealized capital gains before.
The stock market is the one place
where people actually have a chance at a decent retirement.
You can't earn anything from a savings account nowadays,
or a CD or Treasurys. Stocks are the only game in town.
But these capital gains rates
could be higher than 50% for some people.
They want to double the capital gains tax,
and that's going to affect the dividend tax as well.
And don't think this affects only the wealthy.
There are reports that these tax rates
could also hit middle-class homeowners when they sell.
It's a tax hike that wages war on investment,
wages war on savings and wages war on everything
ordinary folks work toward their whole lives.
Bottom line here,
if they're going to both jack up the taxes
on everything under the sun –
companies, cap gains, the states,
foreign taxes, you name it –
and then rely on the Fed
to keep pouring in lots of free money to fund the debt,
this could be a lethal combination.
We could be talking about a soaring cost of living
without the economic gains to pay for all of it.
- Absolutely.
And even before the threat of massive inflation
and major tax hikes on investors,
we were already facing a severe retirement crisis.
- It's true.
Many Americans don't have the resources
to pay for retirement as it is.
- [Marc] 31% of Americans, about 1 in 3,
have zero savings for retirement, zero, nothing,
and nearly 40% of Americans
can't cover a $1,000 emergency expense.
And it gets worse for the younger generations.
Two-thirds of millennials lack any retirement savings.
And just over 1 out of 10 gig economy workers
are saving for retirement.
- That's a crisis.
Without any question, that's a real crisis.
- And the thing is, even those who are working hard to save
don't have nearly enough.
The median retirement account
for households between 55 and 64 years old
was just $144,000,
an amount that would generate
around $570 per month in income.
Now, people now spend more than that
just on the groceries for the month.
- Right.
And if inflation does hit big,
then those numbers are going to get worse;
they're going to get disastrously worse.
Even now, expenses are out of control.
The average cost of healthcare alone –
$300,000 over the course of retirement
for the average 65-year-old couple.
OK, if you're an investor
and you're worried about higher inflation,
taxes, interest rates,
and not having enough savings to cover it all,
how do you overcome this crisis?
What should Americans be doing right now?
As Ronald Reagan said to me many years ago,
"You've shown me the manure."
Now, Marc, where's the pony?
- Well, that's a great question, Larry.
So enough of the problems, let's get into the solution.
So first let's start
with what a great retirement looks like.
- All right, let's dive in.
- So in running Wealthy Retirement,
I've come into contact with thousands of people
who are currently retired or working toward retirement.
And I've heard from people who've worked for 50 years
and are massively in debt.
And I've talked to people who dutifully
put thousands into their 401(k), but due to rising expenses,
still worry that they're going to run out.
So no matter what their financial situation,
what they all want is really rather simple,
security and freedom.
They don't want to have to worry day and night
that they'll run out of money.
They want to make sure that they have enough to enjoy life,
to spend time with their families, to travel,
see the world.
- They don't want to be a slave to their bills,
and they do want to get a good night's sleep.
- Exactly.
So what do you need to achieve that?
Well, first, you want a sizable nest egg.
You need that as a backstop.
And second, you want that nest egg
to pay out substantial income, enough to live off.
And third, and this one is crucial,
you want that income to continue to grow
faster than inflation and taxes can eat away at it.
And that's the biggest thing
worrying the people that I talk to right now.
They fear that even after working so hard and saving,
suddenly the cost of everything is soaring so fast
that their money just can't keep up.
- And they have every right to be worried.
So Deutsche Bank recently came out with a report,
warning of the time bomb of rising inflation,
and I'll quote,
"The effects could be devastating,
particularly for the most vulnerable in society."
That's what the firm's economists said.
- But here's the thing, Larry, there is a solution to this.
There is a way to create wealth that grows so fast,
inflation and taxes can't touch it.
And it's by investing what I call “Forever Dividends.”
- All right, Marc,
you literally wrote the book on dividends.
Your book, Get Rich with Dividends,
is an international bestseller.
And our viewers are going to have a chance
to get a hardcover copy today.
But what exactly are Forever Dividends?
- So Forever Dividends are fairly simple.
In short, what we're talking about
is a small but substantial set of companies
totally and completely dedicated
to paying out increasing dividend payments every year.
So not just for a year or two or five years. I’m talking 10,
20, even 50 straight years.
And these aren't small increases, either.
Forever Dividend companies
will often increase their dividends
by more than 10% per year.
And over time,
some end up paying out massive sums that just keep rising.
Owning Forever Dividend stocks
is the single most reliable way
to ensure you have those two things
every single investor wants, security and freedom.
So let me give you a quick example.
You know the company Abbott Laboratories?
- Of course, it's one of the world's
largest medical device companies.
It makes stents and pacemakers.
It does diagnostic testing for cancer and heart disease.
It sells nutritional products like Pedialyte and Ensure,
something I'm sadly becoming more familiar with
as I get older. But it is a great company.
- It is.
And it's also a Forever Dividend company.
This year, Abbott Labs
will likely reach an amazing benchmark.
It will have raised its dividend every single year
for 50 years in a row.
That's through stock market crashes,
stagflation, booming bull markets,
major financial crisis, wars, peacetime, everything.
So let's imagine you put $10,000
into Abbott Laboratories back in 1980
and then reinvested the dividends.
Care to guess how much your investment would be worth
and what those shares would pay you in income today?
- No, Marc. I’ll bet it's big;
otherwise you wouldn't tell us about this, but go ahead,
how big is big?
- Yeah, big is right.
Just $10,000 in 1980 would be worth $4.77 million today.
And it would pay you an annual income of $45,842
in dividends every year.
- All right, so we're talking about one investment
that basically could have funded
anyone's complete retirement.
It's paying out more than 4 1/2 times
the initial investment just in dividends alone.
Is that the story?
- Yeah, and it's unbelievable.
And what's really impressive is that Abbott
has actually been paying dividends
for almost 100 years.
Now, here's an amazing story.
There was a woman named Grace G.
who worked as a secretary at Abbott Labs.
Now, back in 1935,
she bought just three shares for $180, $180.
She never invested another penny,
but she did reinvest dividends along the way.
And at the end of her life in January 2010,
that $180 investment had multiplied into $7 million.
That's the true power of a forever dividend company.
- All right, Marc.
So what you're saying makes sense.
I think every one of us
would love to have several of these
Forever Dividend companies in our portfolio.
But in my mind,
there are two big problems with what you're describing.
You're driving a car with two wobbly wheels here.
Those problems are speed and money.
In order to get real money
from your dividend stocks in the short term,
don't you need a substantial amount of cash
to get it started?
I mean, many of these stocks pay only 2% or 3% currently.
That's not enough to make a difference
without a huge investment.
And on the other hand,
if you've had only enough money to start small,
don't you need to wait years for it to pay off?
- Larry, those are really important questions.
And listen, I want to address our audience for a second.
Over the past 10 years,
the way we approach stocks here in America
seems to have changed dramatically.
We've become a society of stock traders
who agonize over every tick
rather than investors in good companies
that are in it for the long run.
We want our stocks to pay off in days, not years.
So I want to caution everyone watching right now.
This is not “get rich quick,” it's “get rich smart.”
This is doing it the right way.
And listen, if you follow the principles
that we're going to lay out for you today,
it could happen much faster,
with less money, than you probably think.
Abbott Laboratories is a long-term success story.
1980 feels like a long time ago.
But let's look
at more recent Forever Dividend stock like Broadcom.
So, Larry, you know Broadcom.
- Sure, sure, another great American company,
originally founded by a guy named Henry Samueli.
He's an amazing American success story.
His parents were Jewish immigrants from Poland
who survived the Holocaust in Germany
and then escaped to America.
And once they're here,
they taught their son Henry to work hard,
take advantage of the great American capitalist system.
He stocked shelves while getting an education.
Along the way he developed a keen interest in electronics
after building his own AM/FM radio in shop class.
- They don't teach shop class anymore, do they?
- They don't anymore, I loved it, but it's a shame.
Shop class sparked a whole new life for Henry.
He went to UCLA,
where he got both a master’s and a Ph.D.
in electrical engineering.
He went on to teach as a professor there.
And in the '90s,
he and one of his Ph.D. students
scrounged together 5,000 bucks each and started Broadcom,
a premier developer of semiconductors.
He worked tirelessly, made Broadcom a big success.
Now he's one of the 500 richest people in America.
Now, that is the American dream.
- It's truly amazing.
But now, here's the really important part.
Any investor could have become very wealthy
right alongside him.
Broadcom is one of the best companies in the world
at rewarding regular shareholders.
It's a company that's raised its dividend every single year
for the past 10 years.
So consider this. In December 2010 –
- which feels just like yesterday –
- Right, it's not that long ago.
You could have put $10,000 into Broadcom
right when it first started paying a dividend.
And at the time, the dividend would have seemed small.
It was just $0.28 per share, a yield of less than 2%.
- So you're talking about only 200 bucks in income
on a $10,000 investment.
See, this is what I'm talking about.
You need big money to get decent income
when the yield is less than 2%.
Is that an issue?
- Well, yes, that is true
if the dividends stayed that small,
but from there, something astounding happened.
Broadcom instituted a policy
of increasing its dividend year after year without fail.
The dividend grew from $0.28 per share to $2, to $5, to $10,
and all the way to $14.40 per share.
And the stock grew too.
Now, over those 10 years with dividends reinvested,
your $10,000 investment in late 2010
would be worth $212,490 today, and not only that,
your shares would also be paying you $6,450 annually,
a 64% yield on your initial $10,000 investment.
- Why didn't you telling me?
- We didn't know each other back then.
- It's an amazing transformation, Marc,
from a tiny $200 dividend payment to $6,450 every year.
You should let me know about these things.
- Well, Larry, there is an important point
to come out of this.
In order to turn just $10,000 into a sizable nest egg
of more than $200,000
and to get a yield of 64% on your initial investment,
it didn't take all that much time or money.
- All right, that's true.
So it took 10 years and $10,000.
What I would consider to be a reasonable amount of time
and a reasonable investment.
And if you had gone bigger and invested $100,000,
it would have grown to more than $2 million,
and it would have paid you $64,000 every single year.
Now, that makes for a pretty nice retirement,
a lovely retirement.
But let me make an important point here.
Broadcom is the exception, not the rule.
Most stocks don't raise dividends that fast,
and they don't grow their value that fast either.
Henry Samueli is a special guy
who built an amazing business.
You don't find those every day.
- No, yeah, you're 100% correct, Larry.
So listen, I spent years studying dividend stocks
when I wrote my book Get Rich with Dividends.
And here's what I discovered.
Forever Dividend stocks are a special breed; they are rare,
but they share very similar characteristics.
For instance, generally,
they are run by very smart entrepreneurs like Henry Samueli.
These leaders believe strongly in rewarding shareholders,
and they also make a public commitment
to raising dividends as part of the company's mission.
In the case of Broadcom, for instance,
here's what the company's president,
Tom Krause said recently when earnings came out.
"Despite macroeconomic uncertainties,
we achieved record profitability,
generating $11.5 billion of free cash flow.
And as a result,
we are raising our dividend by 11%."
So you can see, using profits to raise dividends every year
as part of the company's identity.
And here's the thing.
There are in fact
hundreds of Forever Dividend stocks out there.
So what I found is that there is one key characteristic
shared by each and every one of these companies.
Learn this one key metric to look for,
and you can fill your portfolio
with great dividend-raising stocks,
and in a reasonable amount of time,
your entire financial situation can change.
And that's not just my opinion;
this has been studied by economists all over the country.
For example, Paul Asquith and the late David Mullins
of Harvard researched this.
They concluded that
stocks that initiated a dividend and increased it
produced excess returns.
Additionally, the larger the initial dividend
and subsequent growth,
the larger the outperformance.
And Harvey Rubin and Carlos Spaht
of Louisiana State University, Shreveport, found that
"For investors who adapt 10- and 15-year time horizons,
the dividend investment strategy
will lead to financial independence for life," for life.
- And that's really what it comes down to right there,
financial independence for life.
That's what Americans need,
that's what Americans want.
- One hundred percent.
And it gets even better. Rubin and Spaht found that
"Regardless of the direction of the market,
a constant and growing dividend
is a never-ending income stream.”
A never-ending income stream,
regardless of the direction of the market.
Picture that, an entire retirement where your income
could keep rising year after year.
That's what Forever Dividends can do.
And again, one key metric
can help you identify the right companies.
For example, this key metric is found in one of the most
well-known businesses in the world, Mastercard.
- Mastercard.
When I was coming up,
it was still called Master Charge.
- It was.
And now, here's something that might surprise our audience.
Mastercard started paying dividends fairly recently –
October 5, 2006. Not that long ago. But when it did,
it made a commitment to shareholders
to raise that dividend every year.
And since then,
it's kept that promise for 15 straight years.
So for investors, this has been huge.
If you put $10,000 into Mastercard in 2006
and reinvested the dividends,
your investment would be worth $663,900 today,
and they would pay you a 30% yield
on your original $10,000 investment every year.
So again, we're not talking about all that long ago,
but a single investment
in a Forever Dividend stock like Mastercard
can make a major impact on your retirement.
So here, I'll give you one more
that's even more recent, B. Riley Financial.
- Now, I think that's one most folks may not know.
- Probably not.
But our audience will soon see that
the company shared the same key metric
that appears in all the Forever Dividends stocks,
and the results are fantastic.
B. Riley started paying a dividend just a few years ago,
on November 6, 2014.
- Not so long ago.
- Yeah.
And since then, it's increased dividends dramatically.
A $10,000 investment with dividends reinvested
now pays $3,572 annually in dividends.
A 35% yield on the initial investment,
and the shares are now worth $114,400.
Medifast is another one.
It started paying a dividend in December 2015,
but already it's increased the dividend every year
by a total of 468%.
A $10,000 investment now pays a 22% yield.
And that $10,000 investment has grown to $107,600
with dividends reinvested.
So let's imagine for a second that
you put $10,000 into each of these four stocks.
That's a total of $40,000.
Today, your portfolio
would have a total value of $1,098,391,
and it would pay you an annual yield of 38%
on your initial $40,000 investment.
So dividends aren't sounding so boring anymore, are they?
- You're not making this stuff up;
these are real-world examples.
- Absolutely.
- And you're gonna tell me
the next time you come up with one of these great ideas.
You promise?
All right. - Uh-huh.
So to me, folks,
this shows why they're a perfect way
to combat the threat of growing inflation
and higher taxes and interest rates.
In fact, this strategy may be the only way.
Savings accounts and bonds, Treasurys –
well, thanks to the Fed,
all of them pay next to nothing.
But here you've shown us examples,
historical examples,
of how you could achieve huge growth in your portfolio,
and yields at anywheres from 22% to 64%.
So even if inflation
increased by 5% or 10% a year, worst case,
you're still beating it by a wide margin.
- And better still,
there's every reason to believe
those dividends will continue to grow more and more.
Remember, when inflation hits,
it means we all pay higher prices,
but on the other side of those transactions,
the businesses are bringing in higher sales as well.
Higher sales usually means faster dividend growth.
So by tapping into Forever Dividend stocks now,
you're more likely to get in
before dividends start accelerating much more quickly.
Before too long,
the yield on your investment
could be more than 100% every year.
Now, that would be the best-case scenario.
Most companies don't raise their dividends that fast.
And it's only special companies
with an extreme commitment to dividends
that can achieve what we're talking about.
Other companies could cut their dividends.
So it's important to choose the right companies,
and remember that with all investing,
there is an element of risk.
- All right, and time
is always a key factor in this as well.
It takes time for dividends to compound, that's fair?
- Absolutely fair.
And this is why I tell everyone I speak with,
do not wait on this, because every minute you let pass
leaves you further from your goals.
So it's not just about you and your own retirement,
think about what you can do for your children
or your grandchildren,
by helping them get into Forever Dividends
as early as possible.
A small investment today in the right company
could completely change their lives in the future.
Look at a company like T. Rowe Price.
The company initiated its first dividend back
on June 5, 1986.
- Yeah, 1986, that brings me back.
The 1980s and the 1990s were a boom period in the markets.
It's one of the things I'm proudest
of from my time in the Reagan administration;
the tax policies we enacted then
help spur one of the great stock market booms
of all time, really.
- Yeah, they certainly did.
And I have to give credit to T. Rowe;
it was one of those companies
that really wanted to reward regular investors
and not just itself.
When T. Rowe Price first announced a dividend,
it was just half a cent.
- Well, hang on,
that's not much of a reward.
- No, it's not, but wait, it does get better.
So T. Rowe Price
proceeded to increase its dividend every year
without a single cut for 35 years.
So if you had put $10,000 into T. Rowe Price back then
and reinvested the dividends,
it would be worth $3.6 million today.
And the dividends have increased so much
that they would now pay you $76,818 per year in income.
So let me repeat that,
you'd be getting more than $76,000 a year
from dividends alone.
So basically, the single stock could have ensured
you were financially independent for the rest of your life.
- And all it took was one $10,000 investment.
- Right.
So listen, I've shown people
how they can create a really strong retirement portfolio
over the course of just 10 years
if they find the right Forever Dividend stocks.
But with a longer time horizon,
we're talking about
potentially creating generational wealth.
So I tell people, help those around you.
If you have grandchildren,
find those companies
that have a commitment to raising dividends
and get a little bit of money into them now.
It's going to help with tuition for college,
a down payment on a house,
and the major inflation we are heading toward
due to our soaring debt situation.
- So on that one,
I think you make a really good point, Marc.
The future is going to be
really tougher for future generations,
at least that's a possibility.
So just look at tuition alone.
I saw an article in Forbes the other day;
it found that college tuition
is already going up at twice the rate of inflation.
So that means if we see just 5% inflation,
then college tuition could rise at 10% a year.
Now, according to one study, 15 years from now,
tuition for private universities
could go as high as $245,000 per year;
it's outrageous.
- So I guess I should consider myself fortunate
that I'm paying for my two kids to go to college right now,
and it already costs a fortune.
- Yeah, absolutely.
I don't envy you,
but it could be much worse in a few years.
And it does make your head spin
thinking about people who are gonna pay for all this.
And that's just for one major expense.
If housing keeps going the way it is,
even a starter home
could end costing more than $1 million.
I mean, it's bad enough for us old-timers, us seniors,
but these kids are going to be paying a fortune for housing,
food, energy, all of it.
- And again, that's why it's so important
to get started with Forever Dividends now.
Honestly, our futures depend on it.
Now, for everyone watching,
if you're worried about what inflation and taxes
will do for you and your future generations,
you need to find Forever Dividend stocks now,
like Home Depot.
- Home Depot, that qualifies as Forever Dividend?
- Oh, yes, one of the best.
- I guess it's not too surprising, in a way. Home Depot,
another one of those great American companies,
and it has a mission of helping people
learn to build a better future by developing skills
that can improve their own lives.
One thing that really impressed me,
the Home Builders Institute organization
that it partners with,
the goal here is to help 20,000 veterans
or high school students or disadvantaged youth
become skilled craftspeople.
Marc, as you know,
one of the big problems we have right now
is so many job openings that cannot be filled
because people simply don't have the skills required.
- That's right.
And Home Depot is the type of company
that solves that problem.
But beyond that,
it's the type of company
that can solve people's retirement problems too.
So consider this, Home Depot offered its first dividend
back on May 27, 1987,
and since then, the company has made a commitment
to raising it every year.
Split-adjusted, the dividend
has gone from less than a cent per share to $6.60.
Even recently, the company reaffirmed its commitment
to raising the dividend.
The CEO came out with a statement saying,
“It is our intent to return excess cash to shareholders.”
So let's imagine
you put $10,000 into Home Depot back when it started
and reinvested your dividends.
- All right, so you're gonna tell me
another one of these stories.
You're gonna make me feel bad.
You didn't tell me at the time.
What would it be worth today?
- $7.16 million.
And not only that,
you'd also be getting $143,900 in annual dividend payments.
Let me repeat that,
you would be looking at $143,900 in annual income
from a $10,000 initial investment.
And your shares would be worth more than $7 million.
This is what a Forever Dividend stock can do for you,
for your kids and for your grandkids.
- All right, Marc, there's no question,
everybody watching wishes they had bought T. Rowe Price
and Home Depot back then, including me.
Now, in a minute, you're going to show us the #1 key
to identifying a company on track to raise dividends
without fail for years at a time.
Plus, we're gonna give people a chance to get your book,
Get Rich with Dividends.
But first up, I've got a question for you.
What if we go into a bear market,
will that throw a wrench into this entire system?
- So here's the thing
you have to understand about Forever Dividend stocks.
First, they are some of the least
volatile companies you can own.
Forever Dividend stocks are actually less volatile
than even an S&P 500 index fund.
But second, and here's
what's really gonna surprise everyone,
less-volatile stocks actually perform better, a lot better.
- Really, I think most people might believe,
the higher the returns you want,
the more risk you have to take.
- That is what most people think, but it is simply not true.
New York University,
Harvard Business School and Acadian Asset Management
actually did a joint study of this
across more than three decades in the market,
looking at a period stretching from the late '60s
to the early 2000s.
And the study found that the lowest-volatility stocks
increased by 5,800%, while the highest-volatility stocks
actually lost 42% on average.
- That is an incredible stat, really incredible.
So the safer stocks turned out to be better performers
than the risky stocks.
Really, I think that's very good news,
because it means investors
don't have to take on more risk to get better returns;
they don't have to reach out so far.
- Exactly.
And it also means that
if you invest in Forever Dividend stocks,
some of the lowest-volatility stocks you can buy,
you can perform well even in a bear market.
And this was proven by Albert Williams and Mitchell Miller
of Nova Southeastern University.
They discovered that during recessions of 2001 and 2008,
companies with a long history of raising dividends
saw even greater outperformance against the market
than in normal times.
So let me give you an example,
one of the worst 10-year periods in the market
occurred from February 1999,
near the top of the dot-com bubble,
to February 2009 at the end of the Great Recession.
The market as a whole lost 3% over 10 years,
which is a terrible result
considering the market usually goes up around 8% per year.
But Dividend Aristocrats,
these are companies
that have raised their dividends for 25 years in a row,
nearly doubled in value when dividends are reinvested
over almost the exact same period.
So let's look at a stock called W. P. Carey.
- Okay, W. P. Carey,
another great story that almost nobody knows about.
Carey himself was a born entrepreneur.
As a kid, he would go door-to-door
selling soda to the neighbors.
And then in college,
he leased refrigerators to other students
in his dorm for a small fee.
So he made 10,000 bucks that way.
And he soon decided
to build an entire business out of the idea.
So W. P. Carey takes pools of investor money
to buy real estate assets and then leases them out for fees;
it's very good business.
- And it's great for shareholders.
Carey's company started paying a dividend in January 1998,
right as a decade
of terrible stock market performance was beginning.
So let's imagine you put $10,000 in,
which would have bought you 471 shares.
And here's what would have happened.
Because stock prices remained low due to a poor market,
the dividends you reinvested
would have turned into more and more shares over time.
Your 471 shares would have multiplied dramatically.
And then once that bull market kicked back in in 2009,
the value of all those shares would have leaped.
So today, your 471 initial shares
would have turned into 2,271 shares.
And instead of earning $777 per year on your dividends,
like at the beginning,
you would now be receiving $9,538 per year in income,
almost 100% of your initial investment.
- So basically, you're getting back
almost all your entire $10,000 initial investment,
and you're getting it back every year.
- Right.
And here's what really shows the power of dividends.
Between 1998 and today, W. P. Carey stock did OK,
it went up 280%, which is fine.
But with dividends reinvested,
the returns jumped from 280% to 1,733%.
- So that's more than six times higher.
- Exactly.
- So all told here,
your $10,000 initial investment
would have turned into a $183,000 nest egg
that pays you $9,538 every year.
Now, this shouldn't be surprising.
Nothing makes a bigger impact on your total performance
than reinvesting dividends.
Ned Davis Research did a report on this
going all the way back to 1929,
and it found that $100 in the stock market back then
would have grown to $4,989 by 2010,
a good strong return of 4,889%.
But that same $100 with dividends reinvested
would have turned into $117,774,
that's a return of 117,674%.
So reinvesting dividends
increases the return more than 23-fold.
- So a lot of people talk about
the power of compounding interest.
You're talking about the power of compounding dividends,
which is a fabulous power.
I think you made your point.
There's little doubt that finding Forever Dividend stocks
is one of the great ways to grow your wealth
and generate ever-growing income.
It's the perfect way for people to combat
runaway inflation and higher taxes.
But the big question remains,
how do you find the future Forever Dividend stocks today?
What should our audience be doing right now
to find these magic stocks?
- So, Larry, I've spent my entire life studying this.
So let's get into it.
What our audience should be doing right now
is building a portfolio of diverse Forever Dividend stocks.
And in a minute,
I'm going to tell everyone about some pre-built portfolios
of recommended stocks I've created
that have the perfect Forever Dividend stocks
lined up for you.
It's like having a cheat sheet
of the best companies you should own.
But first, let's discuss
what exactly makes for a great Forever Dividend stock.
So the first thing I really wanna see
is a stated company policy
that it wants to increase dividends every year.
Medtronic is a good example.
So listen to this statement from the company CEO.
"Medtronic's strong and growing dividend
is an important component of the total return
we expect to deliver to shareholders.
Our board and management team have great confidence
in Medtronic's ability to generate cash flow,
and we expect to balance the deployment of this capital
through both disciplined investments to drive future growth
and returning cash to shareholders."
Now it's very important, that a Forever Dividend company
publicly states this rising-dividend policy,
because when a company makes a public commitment,
it never, ever wants to go back on it.
In the case of Medtronic,
it's increased dividends every year for 42 years.
$10,000 investment in 1980 with dividends reinvested
would be worth just over $4 million today
and would pay out $76,450 annually in dividends,
with that number continuing to go up every single year.
So finding companies that openly state that
raising dividends is their primary goal is the first step.
Okay, second, generally speaking,
I want to see a current dividend yield
that's at least twice as big as the S&P 500's.
Starting at a higher yield means future growth
will compound your money much faster.
- OK.
So far you're looking for commitment to raising dividends
and a high starting yield, what else?
- So next I'm going to look for high dividend growth.
Some dividend raisers do it really small,
they increase it,
but let's say only by 1% or 2% per year.
Now to me, that is just doing it for show.
I want companies that raise dividends
a truly meaningful amount, by more than 10% every year.
Medtronic has grown its dividend
by an average of 17% annually for 42 years.
That type of increase is why its stock
turned $10,000 into $4 million.
- OK, but here's the problem with that,
what if it doesn't have the money
to keep increasing by 10% every year?
Might it have to stop or even cut the dividends?
- Yeah, and now you're getting to the heart of it, Larry,
because that is a key question.
Does the company have the money to keep raising dividends?
Now, the first way to measure that
is something called the payout ratio.
The payout ratio is the amount of profit
that goes toward dividend payments.
If a company has a 50% payout ratio,
that means it's paying 50% of profit toward dividends,
which means it has plenty of cash left over
to keep increasing it,
but if it has a 100% payout ratio,
that means every penny of profit
is going toward the dividend.
- And that's not really sustainable.
- No, not at all.
So I avoid companies
that have a payout ratio that's above 75%.
Those companies just can't keep raising dividends.
- Now, is this your key metric
that every Forever Dividend company has?
- It's close, but no.
You see, payout ratio is what most people use,
but there's a problem with it,
profit can be manipulated.
Companies use depreciation
or sneaky accounting tricks all the time
to game the numbers,
but you know what can't be manipulated?
- What's that?
- Cash in the door.
So cash flow is the #1 metric
when it comes to identifying Forever Dividend stocks.
So this is my final
and by far most important metric, the cash flow ratio.
I want stocks that have a cash flow ratio below 75%,
and even lower if possible.
And it means they have plenty of cash
to continue raising dividends in the future.
And you better believe
that a company that is committed publicly
to raising dividends every year
is going to do so
if it has the cash flow to do it.
- So let's recap, to identify a Forever Dividend stock,
you want to see a public commitment
to raising dividends every year;
an initial yield of double the S&P 500's average;
high growth of the dividend by more than 10% annually;
a low payout ratio of 75% or less; and a low cash flow ratio,
also 75% or less.
Is that fair?
- Yes, that's all correct.
And those are the key ones.
Now, not every stock I recommend hits all five categories,
but I try to make sure they hit as many as possible.
And I also look very closely at cash on hand and debt.
So if a company has a lot of cash in the bank,
and it isn't heavily in debt,
again, you can expect the dividend
to continue to rise quickly.
And if you use these metrics
to identify Forever Dividend stocks,
you can build a huge nest egg,
and it will pay you substantial income.
And that income could keep growing every year,
crushing inflation, taxes and anything else.
And it is really the single greatest way
to become financially independent for life.
Now, again, this does take time.
Most of my current recommendations
have yields of around 4% to 5%, my highest one is 10%.
So if you buy them right now,
that's a type of yield you can expect immediately.
And in our open portfolio of recommendations,
the average hold time is only three years.
So even if you held them
and reinvested dividends from the beginning,
the yields aren't that big yet.
But remember, we are looking for companies
that increase their dividends quickly.
So Texas Instruments, for example,
is our longest-recommended stock.
I originally recommended it in April 2013,
and since then,
it has more than tripled its dividend payout.
So if you'd put $10,000 in with reinvested dividends,
it would now be worth $67,000,
and it would pay you a 15% yield
on your original investment.
So we're on our way,
but like I said, it does take time.
- The only concern I have is this –
for many folks who are in or nearing retirement,
is there enough time to let these dividend plays grow?
- Well, I will tell you one thing, Larry,
it may take some time,
but the worst thing people can do is wait to get started.
Forever Dividends tend to grow every year,
and the share price
tends to get even more expensive over time.
So the longer you wait, the tougher it will be.
But listen, once you get started,
the dividends can compound really fast.
So let's imagine a very successful scenario
where someone set aside $50,000
to invest in a few Forever Dividend stocks
just 10 years ago.
They spread it out among just five stocks,
like Texas Instruments, United Health Group, Broadcom, Visa,
and Broadridge Financial Solutions.
Now, your $50,000 Forever Dividend portfolio
would now be worth $601,395,
and it would be paying you a yield of 22.8% annually
on your original $50,000 investment.
- But, Marc, how confident are you
that folks can actually do this?
- Well, listen, nothing is guaranteed
in the investment world;
dividend stocks have risk, have loss,
just like everything else.
But in my experience,
dividend stocks are the most consistent way
to generate income that continually grows every year.
If people follow the system,
I am very confident anyone can do it.
The total return on the portfolio I just showed you
was 1,081% over 10 years, which is superb.
Basically, you've multiplied your portfolio
by a factor of 10 in 10 years.
But let me tell you the story
of one of my actual subscribers, his name is Kevin Hannigan.
And in 2008, his portfolio was worth $381,000.
So he had a good chunk to work with,
but not enough to retire, not by a long shot.
Now, he tells us
that he used a few services for investment ideas,
but then he began following my dividend strategy
in the research service I publish
called The Oxford Income Letter.
And it became his go-to service for investment ideas.
And within nine years,
his account had climbed to $2.7 million.
He had multiplied his portfolio just over sevenfold.
So yes, I have helped people
see this type of performance in real time.
In just nine years,
Kevin went from a pretty good portfolio
to a great portfolio.
- Well, I want to meet Kevin.
I have checked out
some of the reviews of your research service
from a few other subscribers as well.
And they're quite impressive, actually.
So Ed Abernathy said,
"It's very exciting to see
money magically appear in my account throughout the month.
The knowledge I've gained from Marc has been life-changing."
And then Donald Sullivan wrote,
"I have used Marc's stocks to create a retirement portfolio
that gives me peace of mind.
Even when the market gets a little crazy,
I have the income I need to do whatever I want."
And then Paul James said,
"We've made lots of money to support us in retirement.
Thank you, Marc.
We have more now than we had when we retired 20 years ago."
That's why I want you to keep in touch with me.
- Oh, absolutely, don't worry about that. We’ll be in touch.
But I really do particularly appreciate that last one,
because it illustrates
one of the great things about Forever Dividends;
they can grow so fast that in retirement,
instead of using up all your money,
your savings can actually continue to get even bigger.
That's why the professors from Louisiana State
called it never-ending income stream.
- Well, it's really impressive.
And you've got hundreds of these notes
from your subscribers.
I read one more. Stephen Richards wrote,
"Thank you for the great job you're doing
with The Oxford Income Letter.
It has been by far the best investment newsletter
that I have subscribed to,
and I've subscribed to a lot of them.
You've made me a lot of money."
So, Marc, how does The Oxford Income Letter work, exactly?
- Well, it's pretty simple, really.
Each month, I scan the markets
looking for Forever Dividend stocks,
and I look for all the characteristics
that I laid out for our audience today.
And overall, I'm looking for companies
that are committed to increasing dividends every single year
and have the solid fundamentals needed to do so.
Now, my goal is to list stocks that will end up paying out
more every year in income than your original investment.
So if you put in $10,000,
I want to eventually see that position
hand you $10,000 or more
in dividend income every single year.
Now, this can take many years, but once it happens,
you can be pretty well set up for the rest of your life.
And the good news is, most of my recommendations
are ones we've held for just a couple of years.
So it's really very early,
and what I expect to be a long growth period.
Now, none of them have reached the 100% yield yet,
so you haven't missed out.
So there's still time,
if you get these recommended plays now.
Now I also have a dividend testing tool
called SafetyNet Pro.
Now, this algorithm takes all the financials for a company
and calculates which companies
are most likely to cut dividends
and which dividends are safest.
Then I send out my monthly issue
detailing which Forever Dividend stock to buy.
And I've built four specific portfolios
of recommended stocks
designed for different types of investors.
- All right, so that's good.
So I assume you have different portfolios
for people who are in retirement now,
for those who are getting close to retirement
and for those who have a long way to go.
- That's right.
So we have the Instant Income Portfolio,
and this is best
for people who are looking for that income right now.
So if you want to collect those dividend payments today
and more tomorrow, this one is for you.
So then we have the Compound Income Portfolio,
and it's made up of the stocks
that are most likely to grow over time.
You want to reinvest dividends with these stocks
and watch them grow and grow and grow year after year.
And we also have the High Yield Portfolio,
and this one has a bit more risk,
but I try my best to keep that risk reasonable.
And by taking on a little more risk,
we end up getting much higher yields, so it's exciting,
but I recommend
putting only a small portion of your portfolio here.
And finally we have the Fixed Income Portfolio,
and those plays are for people who just cannot stand risk.
- All right, so it sounds like
you've got your bases covered.
I have a big question for you here, Marc.
You obviously had a lot of success doing this,
but you and I both know,
nothing is perfect in the stock market.
I'm sure you've had stocks cut their dividends
or not perform like you anticipated,
so what do you do with them?
- Well, Larry, that's part of investing,
but I have a philosophy that I like to pass along
to all of my new dividend junkies out there.
And everyone watching at home,
make absolutely sure you follow this.
We always want to cut our stocks
that aren't performing as fast as possible,
and hang on to our winners for the long haul.
So for example,
if you look at all the stocks we closed out
because they weren't performing to my standards,
the average gain on those is just 4% in 545 days.
Those stocks weren't growing, so we cut them.
On the other hand,
if you look at the stocks in our portfolio right now,
we have open wins
like 279% on Raytheon Technology since 2013,
291% on Eaton Corp. since 2015,
333% on Digital Realty Trust since 2014,
163% on AbbVie since 2016.
And we're just about to top 600%
on Texas Instruments since 2013.
The average gain on all open positions
is 72% in about 2 1/2 years.
- Very impressive, Marc.
No wonder your subscribers are so happy.
And for those of you watching at home,
there's no question in my mind,
if you're excited about tapping into Forever Dividends,
Marc is the guy to guide you.
The Oxford Income Letter
definitely seems like a great resource.
And I know Marc has set up a special offer for our viewers.
And I have to admit,
I couldn't believe what Marc charges for this.
Honestly, I thought he was joking, but it's true,
it comes out to less than $0.15 a day.
Now, when I was at Bear Stearns,
we wouldn't have stood for people
paying so little for our products,
but Marc, I guess, is a different sort of guy.
He's on a mission to help Main Street Americans
tap into the power of dividends.
Now, with that in mind, Marc,
you did promise people the chance to get your book.
- That's right, Larry.
So I've set aside a few copies of my book
Get Rich with Dividends for new subscribers
to The Oxford Income Letter today.
So anyone who signs up will get a free copy.
- Folks, I gave it a read myself,
and it's filled with great stuff.
There's one part of the book
where Marc shows you a stock that dropped 37% over 20 years.
With his special dividend strategy, instead of losing money,
you would have actually made 21 times your money.
Not only is this book a great read,
is also one you should absolutely
share with your family members, especially the younger ones.
This is the kind of financial education
you just don't get in school nowadays.
- Well, and instead of sharing it,
you could also encourage your friends and family
to buy a few copies; I'm sure the author wouldn't mind.
- All right, got it, good ad.
You're the one who agreed to give these books out for free
to your new subscribers; now don't get cold feet on me.
No, I'm just kidding, Larry.
I always like to make sure my subscribers
get every tool that I can give them to help them succeed.
In fact, I have a couple more free bonuses
I've put together
when people subscribe to The Oxford Income Letter today.
Now, the first is something I mentioned earlier,
access to my SafetyNet Pro dividend rating system.
- And how does that one work?
- So it's very simple.
We built an educational tool
that measures the fundamentals of a stock.
Now, we're looking at earnings growth,
cash flow ratios, dividend history and more.
And then the system gives the dividend a rating
that tells you how safe it is from being cut.
- Well, that sounds like a really valuable tool.
- Yeah, and it's quite accurate too.
For example, I ran it
for The Walt Disney Company in early 2020,
and it rated it an “F.”
That means the dividend is likely to be cut.
And sure enough, in May 2020,
the company suspended the dividend.
On the other hand,
I ran the system for Lowe's at the beginning of this year,
and it rated it an “A,” and in May,
Lowe's increased its dividend by 33%.
- The SafetyNet Pro tool
is one of the greatest features of your research service, isn't it?
- I think so, my subscribers love it,
but there's still plenty more.
For example, our second bonus is very important right now;
it details three investments you can use
to beat the coming tax hikes.
- All right, I'm glad to hear that, Marc.
But many politicians
just want to attack wealth and those who get wealthy.
I mean, once they figure out where it is,
they'll do anything to get a piece of it.
Look, I totally, completely disagree with all that.
Class warfare never made this country great and never will.
But unfortunately, that seems
to be where Washington is going these days.
- And no question.
And so I've found three different types of investments
that can help you protect your money from the taxman.
The first is a set of companies
that pay out distributions instead of dividends.
Now the key difference,
the distributions are tax-deferred until you sell,
much like with a 401(k).
So you don't have to pay dividend taxes every year,
and even better,
if you end up passing these investments on
as part of your estate,
the gains can be passed on tax-free as well,
depending on your specific situation.
Now, the second type of investment
with a major tax advantage
is a set of companies
that don't have to pay corporate taxes;
instead, by paying 90% of profits directly to shareholders,
they skip the corporate taxes completely,
and that means more dividends for you.
And the third is a special type of stock
that allows you to get in on private businesses
and then collect dividends from their growth.
Now, all three of these investments
are great for anyone who's worried about coming tax hikes.
And that's why I've created a new report titled,
"Three Tax-Advantaged Investments That Pay Big Income Too."
- And everyone watching will get that for free
for joining The Oxford Income Letter?
- That's right.
And I have one last bonus,
and this one is big.
Now, Larry, one of the key things
you asked me about throughout our program today
is the length of time it takes
to compound your dividend growth.
- Right.
Now, listen, I think you've laid out a great plan,
and people should be patient when it comes to dividends,
but a lot of people
are looking for answers and returns sooner,
and they need your help.
- Well, for those people, I have a final benefit.
It's a free report on what I call “Extreme Dividends.”
Now, I want to be upfront.
What I'm about to talk about does come with more risk,
but it can pay off if you find the right stock.
So essentially what I'm talking about
is targeting tiny dividend-paying penny stocks.
- Penny stocks, that definitely sounds
like much higher risk.
- It is.
But what I've found is that certain penny stocks
also can quickly and dramatically raise dividends,
and when they do, in a much shorter time period,
you can get yields of more than 100%
on your original investment.
Now, the key to this is making a bet on a tiny penny stock,
and then when that penny stock rises
and pays higher dividends,
you can end up collecting
far more every year than your original investment.
Now, Universal Insurance Holdings is a good example;
it was a tiny penny stock trading for just a few cents,
but in just three years,
it increased dividends so much
that it was paying a 1,000% yield on its original price.
Seriously, a $1,000 investment
was then paying almost $12,000 in annual income.
Well, that kind of seems unbelievable.
I would just say good luck on that.
- And it really is crazy.
And like I said,
it's riskier to target penny stocks in this way.
So the trick is buying shares cheap,
before the dividend takes off,
so you have a lot of shares to collect dividends from
when the Extreme Dividends start later.
Now this is definitely a “lottery ticket” type of strategy,
and it's hard to gauge which companies are best positioned
to be the big dividend payers years in advance.
And I only started looking into the strategy recently.
So we haven't had a company
generate Extreme Dividends this fast yet,
but the goal with our report is to help our subscribers
understand what they can look for
to identify a future Extreme Dividend company.
Because if you find an opportunity
and put just a few dollars in,
it can pay off big when it works out.
So I've put together another free bonus for our audience
that details the three tiny stocks
that I believe are most likely
to turn into massive dividend payers,
it's called "Three Extreme Dividend Stocks."
- All right, Marc, this is a whole lot of great stuff here.
There's no question
you put together a great package for your subscribers.
So can you recap everything for us?
- Absolutely.
When you become a subscriber
to The Oxford Income Letter today,
you'll get 12 monthly issues of my Oxford Income Letter
with details on my favorite
Forever Dividend stocks to own now;
access to all four of my portfolios of recommendations
(the Instant Income Portfolio, the Compound Income Portfolio,
the High Yield Portfolio and the Fixed Income Portfolio);
a free hardcover copy of my book,
the award-winning bestseller Get Rich with Dividends;
access to my exclusive dividend-rating system,
SafetyNet Pro; both special bonus reports
(“Three Tax-Advantaged Investments That Pay Big Income Too"
and "Three Extreme Dividend Stocks).”
And on our website,
you'll find a number of tools
designed to help you build a Forever Dividend portfolio
that gives you the peace of mind that you need.
You'll get access to my Retirement Cash Calendar;
our income investing video series;
our dividend tax guide;
additional special reports
like "The Safest High-Yield Dividend in the World"
and "My #1 Dividend Stock”;
plus dozens more resources.
My goal is to ensure that you have everything
you need to succeed at your fingertips.
And if you ever don't, make sure to call our concierge line
to ask any questions you might have about your subscription.
- Marc, no question,
you do everything in your power to help folks succeed.
And I especially like the tax combat part.
So I've just got one last question for you.
What if people sign up,
but then decide it's not really right for them?
- Well, we have the most
generous satisfaction guarantee I can offer.
You get the entire life of your subscription
to decide if it's right for you.
And if at any time during the 365 days of your subscription,
you don't feel it's working,
just call us for a full and immediate refund.
I'll even let you keep all the bonuses
I want to send you today,
and that includes your copy of Get Rich with Dividends.
- All right, Marc, that's more than fair,
and I wouldn't expect anything less.
Now, for everybody watching at home,
I want to thank you for being a part of our program today.
Listen, there are potentially
some very difficult times ahead.
Americans are already threatened,
they're already wondering about the future;
many are not nearly prepared enough financially.
And if there's an inflation explosion,
if it's temporary or not,
is rightfully making a lot of us worried.
And you’ve got to add on top of that,
a run of massive tax hikes;
it could be a lethal combination
that could devastate your savings.
So after spending time with Marc
and reading The Oxford Income Letter myself,
I think his system makes sense.
It's “get rich smart,” as he put it.
And if you want to ensure your income and wealth
grow much faster than the runaway inflation
that may be in front of us,
if you want to give your family a legacy of wealth
that continues to grow year after year,
if you want that never-ending income stream,
and you want financial independence for life,
as the two professors from LSU called it,
then go ahead and click the button below;
check out The Oxford Income Letter risk-free.
There, one of Marc's colleagues
is going to walk you through the process of getting signed up.
You'll be taken to a secure page
to review everything Marc is offering.
Marc told me he has a special deal available
that comes out to less than $0.15 a day.
I told him that's way too cheap, but he wouldn't budge.
And I kind of like that about him, he's a businessman.
I want to thank everyone for spending time with us today.
From Marc Lichtenfeld.
I'm Larry Kudlow, and we're signing off.