Get Rich - Stay Rich - Investing for Monthly Income

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September 2012 Monthly Income Plan Update

As we approach the end of the September option expiration cycle, the Get Rich Monthly Income Plan had a great month for investors.

In January, we kicked off the perpetual covered call strategy. For those who are new to this concept, let me share the rationale of this income investment. This strategy was created to produce monthly income with stock dividends and covered call premium. In addition, there is a protective, blanket put, to ensure the volatility in the market does not affect your return of capital.

We will be adding one new perpetual covered call each month to keep fresh ideas on the table. We will follow the progress of the perpetual covered calls each month the year. I will email premium members with trading directions when an action is required. Here are some of the results for 2012:

Perpetual Covered Call Returns:

Stock 1 – Oil Company has an YTD total return of 153% including dividends and special dividends.

Stock 2 – Drug Store Company with an YTD total return of 68.1% including dividends.

Stock 3 – Technology Company with an YTD total return of 27.3% including dividends.

Year to date, the SPY (S&P 500) is up 16.1% and the Powershares S&P 500 Buy-Write (PBP) is up 8.16%.

We also provide a list of stocks for monthly covered calls. Here we change the list each month based on investing in the right stock for monthly income. For the September option cycle, this was a great month for our Monthly covered call trades.

We made monthly returns of:

7.83% on GME,

6.91% on LAD,

3.8% on COH, and

3.4% on PSX,

We have added the covered put trades as an additional way to sell premium and to enter stock positions. I frequently sell puts to enter a new stock position because (1) I get the stock at a lower price than it is trading at the market. (2) I get to produce income from the premium I receive when selling the puts. If the stock is above the put strike price at expiration, I keep the premium and have the opportunity to sell more outs or just purchase the stock cheaper because I have the put premium to cover partial costs. I have used this technique for several months on the same stock before I get the stock put to me. This creates enough income to really lower the total cost of the stock. Then, when the stock is put to me, I sell calls (covered) to earn more income until the stock is called away. Then – rinse and repeat.

For investors wanting to create monthly income, the Get Rich Monthly Income Plan is right for you. Click here to learn more.

Fastest Dividend Growers with a Bullish Outlook

Buying stocks that increase dividends allows you to take advantage of one of the most powerful tools in the investors’ arsenal — the wealth-building effect of compounding.  And consistent dividend growth is like jet fuel for the compounding engine.   But there are more advantages to companies able to consistently grow dividend payments.  One often overlooked “plus” is that they tend to be safer investments.  Dividends are a litmus test of a company’s true financial strength.  Only companies able to grow earnings through good times and bad will commit to consistently raising dividends.  And these are the types of business that tend to see more stability in their shares.

It’s even better when you have companies that are increasing their dividends at high rates over a five year or longer period.  My search for 5-year dividend growth rates creates a list of potential fast dividend growers.  But to make the list more appealing, I also require an equity summary score that indicates the consensus among analysts is Bullish or Very Bullish.  Investors should keep in mind that dividend growers may not have a high yield today but will grow your yield on cost for years to come.  This is a list of the best stocks with highest dividend growth rates:

UnitedHealth Group (UNH) is a diversified health and well-being company dedicated to helping people live healthier lives and making health care work better.  While the clouds overhead are the ruling on Obama’s Health care law, UNH has not missed a beat with its dividend growth.  UNH has a dividend yield of 1.18% on a 13% payout ratio.  More impressively, UNH has a 5-year average dividend growth rate of 85%.  UNH increased its dividend 30% in the past year. UNH has an equity summary rating of 9.4 out of 10 for a VERY Bullish outlook.

Fertilizer producer CF Industries Holdings Inc’s (CF) quarterly profit easily beat Wall Street’s expectations due to strong demand for nitrogen during the North American spring planting season as reported on May 5 2012.  Long term, we believe tight global grain stocks will sustain high farm profits, plantings and fertilizer demand.  CF has a dividend yield of 0.99% on a 5% payout ratio.  CF has a 5-year average dividend growth rate of 82%.  UNH increased its dividend 300% in the past year.  CF has an equity summary rating of 9.3 out of 10 for a VERY Bullish outlook.

Herbalife Ltd. (HLF) is a global nutrition company that sells weight-management, nutrition, and personal care products intended to support a healthy lifestyle.  HLF sank to a 52-week low as David Einhorn of Greenlight Capital asked a few questions on the company’s earnings call but had no position in Greenlight’s recent portfolio update.  HLF has a dividend yield of 2.72% on a 25% payout ratio.  HLF has a 5-year average dividend growth rate of 64%.  HLF increased its dividend 50% in the past year.  HLF has an equity summary rating of 9.7 out of 10 for a VERY Bullish outlook.

Access National Corporation (ANCX)) is the parent company of Access National Bank, an independent bank serving the business community of the DC Metropolitan area.  ANCX reported first quarter net income of $3.4 million, a 50.3% increase over the $2.3 millionrecorded in the first quarter of 2011.  This represents the company’s 47th consecutive quarterly profit over its 12 year history.  ANCX has a dividend yield of 2.02% on a 13% payout ratio.  ANCX has a 5-year average dividend growth rate of 43%.  ANCX increased its dividend 100% in the past year.  ANCX has an equity summary rating of 9.9 out of 10 for a VERY Bullish outlook.

Harman International Industries Inc.’s (HAR), the maker of high-end stereo, audio and recording equipment and digital products, has notched top-line growth recently by aggressively expanding into emerging markets and from the benefits of an overall recovery in consumer and automotive spending.  Harman is gaining audio market share in the luxury auto market and has inked deals inChina and India.  HAR has a dividend yield of 0.89% on a 6% payout ratio.  HAR has a 5-year average dividend growth rate of 43%.  HAR increased its dividend 200% in the past year.  HAR has an equity summary rating of 8.5 out of 10 for a Bullish outlook.

UNH Dividend Yield Chart

UNH Dividend Yield data by YCharts

Diary of a Monthly Income Plan (INFOGRAPHIC)

Some investors and traders are always searching for that “holy grail” to make their millions in the markets.  These traders look to quantum programs, black boxes, high frequency trading and other sophisticated methods to gain an edge on the market.  At Get Rich Investments,we like to keep investing as simple as possible.  Afterall, we are totally focused on one objective to create monthly income from investing.  We created an infographic, “Diary of a Monthly Income Plan” to show how easy it is to invest for monthly income in today’s market.

Free to embed on other sites using this code:  <embed src=”” height=”400″ width=”466″ type=”application/x-shockwave-flash” allowFullScreen=”true”>


Diary of a Monthly Income Plan_(Infographic)

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