New Investment Strategy: The Daily Paycheck

My mom mentioned that she was researching a new passive income investment strategy by Amy Calistri called The Daily Paycheck. When she told me the premise of this retirement income strategy, I was intrigued.

Calistri has come up with a pretty brilliant strategy to bolster your stock portfolio with income generating, dividend paying stocks. Basically, the idea is to invest in dividend paying stocks that payout in intervals in such a way that you're paid 365 times a year, approximately 30 times a month. Her challenge was to find a way to generate significant, steady income for retirees. She has had some great, reasonable success: her portfolio of $267,000 generates about $1,400 in income from dividend payments alone - not including capitol growth.

This peaked my interest because I am a former day and swing trader. Having only held stocks for a less than a day to about two-three weeks, dividends didn't factor into my considerations. Dividends that I did earn were always just a surprise bonus that I didn't pay much attention to, I had never really considered dividends a strategy in itself.

Its a great idea - choose good, hearty companies to invest in that not only yield capitol gains, but extra bonus payments throughout the year! Also, dividends traditionally come from companies that are doing well financially and have gains that generally stay above the average stock market yields. Wonderful!

I took the basics of what I understand the strategy to be and have started my own daily paycheck using half of my Rollover IRA from my previous employer, which equates to one-third of my overall savings. The other two-thirds, I've invested in some safe, but profitable mutual funds and ETF's. Still being a young woman, I have a fairly aggressive investment strategy that I'll adjust as the years go on.

So, as it stands I invested in 16 stocks that will be paying out dividends 57 times throughout the year. Instead of paying for access to Amy Calistri's picks, I chose a few stocks from "Best of" lists on Kiplinger.com and chose a few of my own favorites that I've traded over the years. I double-checked that my chosen stocks did indeed pay dividends on Dividend.com.

I am going to employ and buy-and-hold strategy, but plan to exchange out some losers for winners as time goes on. There's still a danger of falling asleep at the wheel on this passive income strategy!

Dividend Paying Stocks

O

COP

CL

GE

WTR

ADP

MTB

WMT

CSCO

PFE

AAPL

PEP

VGHCX

FGRIX

VMMXX

VDIGX

Mark Cuban vs the SEC: Cuban Wins!

I've been very lightly following the SEC case against Mark Cuban. As a fellow Dallasite and Mark Cuban fan, I was excited to hear that he was cleared of all charges this week!

Apparently, back in 2004, Cuban sold 600,000 shares of Mamma.com stock before the company made a private maneuver that was seen as unfavorable to its current stock owners. He effectively sold off all of his shares in the company, amounting to nearly 8 million dollars, a few weeks before the company made the impending, unpleasant public announcement.

Among a number of other details Mark Cuban was made aware of this private equity offering when Mamma.com executives invited major investors to participate in the new placements. Cuban declined when he found out that the company had begun to associate itself with a known stock swindler, Irving Kott.

He also claims that he was never asked not to sell his existing shares nor was he bound to confidentiality. The jury agreed with his version of events considering there was no written confidentiality agreement to prove otherwise. Seems likely that one of the grittiest, shrewdest men in business today would want anything that he's agreed to in writing. Oral confidentiality agreements are worthless and I'm surprised that the SEC went to trial with nothing but a claim that, 'he promised!'

Cuban spent more than the potential punitive SEC fees and fines defending himself against these charges since the case was dropped and re-opened in 2009. He declined to settle with the US government based on principle, knowing he had not committed illegal trading activities. He's fortunate he had the funds to fight these charges.

All in all, I feel its foolish to forget that he foresaw the pop of the internet bubble so many years ago. He sold all of his Yahoo.com shares he earned in the sale of broadcast.com, just before the stock devalued shortly thereafter.

Mark Cuban is just a talented, opportunistic businessman who knows his way around the trading floor. That's why he's one of my grittiest entrepreneur idols!