☕️ Sunday Coffee: MaxDividends Strategy - Key Rules for Living Off Dividends
☕️ Sunday Coffee: MaxDividends Strategy - Key Rules for Living Off Dividends
Key features of concept and basics of strategy
MaxDividends focuses on high dividends at the time of purchase and growing dividend payments. It targets shares of large, reliable companies. Investors buy stocks and earn income while holding them.
Intro
Core idea of MaxDividends concept is to live off dividends based on picking high yield solid stocks with growing dividends as mainstream of passive income.
It promotes buying and holding assets while earning profits through dividends. This way, investors live off their capital without depleting it. The money works for them, generating income without their active involvement.
The strategy aims at capital preservation, protection from inflation, and regular income. Numerous public stories confirm the effectiveness and benefits of this approach.
People gradually accumulate capital in dividend stocks and live off the dividend income. This answers the question of how you can secure your future without relying on others, pensions, or social institutions.
MaxDividends Strategy: Key Rules for Living Off Dividends
If you don’t have much time to pick dividend growth stocks yourself, we’ve simplified and automated the process.
💡 At MaxDividends, we developed an algorithm that automatically analyzes all public US companies (over 5000) and their financial reports, selecting those that meet the criteria outlined above. This results in a list of around 200 companies.
You can learn more and see the list here: Max Dividends stocks list updated weekly
You can start investing in stocks with the MaxDividends strategy with small amounts. There’s no upper income limit—the strategy allows for any size of profit.
💡 To make it easier for you to understand how to go from point A to point B, we’ve created a helpful calculator to determine how much money and time you’ll need to live off dividends or make them a significant source of growing passive income.
Enter your details and see how quickly you can reach your passive income level with the MaxDividends strategy.
Passive Income Calculator to Live Off Dividends
The MaxDividends strategy is based on the principles of prudent investing
1. Long-term Investing: Adopting a "buy and hold" approach. The portfolio includes stocks capable of paying dividends for decades.
2. Diversification: Building a balanced portfolio of stocks across different sectors.
3. Inactivity: Minimizing changes and active actions. Operations are infrequent. For example, I check my MaxDividends portfolio only twice a year, which takes me 10-15 minutes.
4. Let Winners Win: Not selling stocks if they increase in value. Stocks are sold only if the company stops paying dividends or if the business stagnates and stops growing.
The core principle of the MaxDividends strategy is investing in reliable stocks with high and growing dividends. Dividends create a stable income stream for the investor. Other rules regarding when, what, and how much to buy/sell can vary depending on your situation and goals.
Selecting Stocks: Key Criteria of MaxDividends Strategy
You can follow the MaxDividends strategy independently by selecting stocks based on these criteria:
🟢 Buy
The company's sales have been growing for the past 10+ years.
The company's operating income has been growing for the past 10+ years.
The company has been profitable for the past 10+ years.
The company has consistently paid dividends for the past 10+ years without interruption.
The company increases its dividend payments over time.
🟡 Sell
The company's sales have been declining for the past 10+ years.
The company incurred losses in the reporting year.
The company declared reducing dividend payments.
The company stopped paying dividends.
💡 Learn more about the effectiveness and selection criteria in our articles:
This approach allows you to choose strong, growing, and often undervalued stocks with good potential.
The MaxDividends strategy is based on fundamental analysis of companies and their business results, aiming to select not just high-dividend stocks, but the most reliable companies. Analyzing reports takes time, and with thousands of companies, it becomes a daunting task.
Four Simple Ways to Follow the MaxDividends Strategy
Choose stocks yourself, or use the MaxDividends strategy stock selection rules and conduct your own research. Buy companies which meet criteria and sell them if they drop out.
Track companies from the MaxDividends Top Undervalued High Yield & Dividend Growth stocks of the week and sell them if they drop out of the MaxDividends list.
Use ready-made stock sets from MaxDividends each week for $300, $500, or $1000.
Follow companies from the ready-made sets and sell them if they drop out of the MaxDividends list.
Follow the strategy conveniently with all the data at your fingertips, a clear goal map, and full support from the MaxDividends team on autopilot. Apply for early access here.
MaxDividends strategy in practice
To see how the MaxDividends strategy works in practice, I started an experiment: $12,000 a month in 120 months.
Using the MaxDividends calculator, I calculated that by investing $12,000 a month with a starting capital of $ 0.00 😳 and reinvesting dividends, I will reach my goal in ~120 months. Until the end of the experiment, I will reinvest all received dividends back.
🚴 Year 1: ~10% of the Goal
🚴 Year 5: ~45% of the Goal
🏆 Year 10: 100% of the Goal. Mission complete!
Every week, I make purchases according to this plan and post the strategy results on the blog. You can follow my purchases here.
You can check also topics about RoadMap to live off dividends
Sunday Coffee is a column where I share insights on stock investing and the philosophy of long-term investment, discuss intriguing thoughts and ideas that could benefit you.
Did you enjoy the MaxDividends idea and research by finding it interesting, saving you time & getting valuable insights? What would be appreciated?
Sharing it around with like-minded people and hitting the ❤️ button. This will help me bringing in more & more independent investment research about passive income based on investing in solid high yield dividend growth stocks: from a small startup team of private investors, followers of DGI and F.I.R.E with dividend income, not a fund, bank or so … !
Best regards Max Dividends
MaxDividends is subscriber’s supported newsletter with community and community member’s tools to start building long-term growing passive income to live off dividends.
What is inside? Check Out Our 5+ Star Deal
MaxDividends Stocks of the Week: Top 10 Undervalued, High-Yield & Dividend Growth stocks every week
To boost your passive income for living off dividends. 👉 See example
Easy Peasy: Build Your MaxDividends Portfolio to Live Off Dividends with Pre-Selected Stock Sets
Grab ready-made MaxDividends Stock Sets starting at $300, $500, or $1000 each week. 👉 See example
RoadMap to live off dividends
Ready-to-go step by step weekly Guide to Achieving Financial Freedom. 👉 See example
Max Dividends portfolio: Goal $12,000 monthly for 120 months
My personal MaxDividends portfolio with all changes and updates weekly. 👉 See example
Sunday coffee
My personal life & business column where I share life moments, insights on stock investing, long-term investment philosophy, and intriguing thoughts to benefit you. 👉 See example
Community
Stay in touch with me and other MaxDividends followers. Ask future Dividend Rantiers how is going!
FAQ
👉 What is MaxDividends project idea?
👉 What is MaxDividends strategy?
👉 How do you choose MaxDividends stocks?
👉 How well does the MaxDividends strategy work for building a growing passive income?
👉 One more secret sauce of MaxDividends strategy
👉 MaxDividends Roadmap to Early Retirement with Living Off Dividends
🙏 A few important notes:
We're not Wall Street managers or a fund, and our fee for using the product will be the lowest in the world. We're a startup and a group of individual investors who, like you, want to live off dividends.
Profit isn't the project's main goal. Once we cover the costs of maintenance and development, we'll direct most of our earnings to charity and funds for research and fighting complex diseases.
Did you enjoy the MaxDividends idea and research by finding it interesting, saving you time & getting valuable insights? What would be appreciated?
Sharing it around with like-minded people and hitting the ❤️ button. This will help me bringing in more & more independent investment research about passive income based on investing in solid high yield dividend growth stocks: from a small startup team of private investors, followers of DGI and F.I.R.E with dividend income, not a fund, bank or so … !
Support us and welcome aboard! Launch your own dividend machine following Max Dividends strategy.