looking to make some extra cash without breaking the bank with just a small investment of $25 per week you can start your journey to earning over $5,000 a month Yes you heard that right it's possible in this video I'll show you and John's simple and practical tips that investors keep secret I'll show you the drip strategy and how you can make it even better and in the end I'll show you how using this strategy you can turn a $25 per week investment into an over half a million portfolio paying over $5,000 in monthly dividends so grab your 25 bucks and let's get started on the path to financial success everything needs a strategy you need to plan out what you need and how to get there the same is the case with investing in our case our goal is to retire and still have free monthly payments as if you never retired from a job but the problem is we only have $25 per week to spare so the only strategy for this is using the drip investment strategy drip or dividend reinvestment plan is a smart way to grow your Investments over time think of it like planting a seed and watching it grow into a mighty tree instead of soil and water you use your dividends to buy more shares which then generate more dividends creating a cycle of growth here's how it works imagine you own shares in a company that pays dividends instead of taking those dividends as cash you reinvest them to buy more shares this means you own more shares which in turn generate even more dividends it's like a snowball rolling down a hill getting bigger and bigger with each Revolution one of the key benefits of drip is compound interest when you reinvest your dividends you buy more shares and when those shares pay dividends you reinvest them as well this Snowball Effect leads to exponential growth over time let's break it down with an example suppose there's a stock that's worth $20 per share and you own 100 shares of that company it pays a $1 dividend per share each year at the end of year 1 you'll have $100 in dividends instead of Cashing Out you reinvest and buy five more shares of the stock now you have 105 shares of the company the next year instead of receiving $100 you'll get $105 in dividends the following year you'll own 110 shares then $1 120 and so on each time increasing the dividend amount over time your investment grows larger and larger thanks to the power of compound interest another benefit of drip is dollar cost averaging instead of trying to time the market you buy shares regularly regardless of whether the market is up or down this helps to smooth out the highs and lows averaging out the cost per share over time let's see how this works suppose you invest $100 every month in a company's drip some months the share price might be high so you'll buy fewer shares if other months the share price might be low so you'll buy more shares over time your average cost per share will be somewhere in between helping to reduce the impact of Market fluctuations finally drip offers the convenience of automatic investment once you set up a drip with your broker it takes care of everything for you you don't have to worry about manually reinvesting your dividends or timing your purchases it's a streamlined process that helps you you stay focused on your long-term goals in the end I'll show you how this drip strategy can turn a small investment of $25 per week into over a half million portfolio that pays over $5,000 per month but for that you need to improve the drip strategy now here's how you can supercharge the drip investing strategy by contributing a set amount every week month or year for this video I'm investing $25 per week in my portfolio that's $100 per month or $1200 per year let me break down how this investment can make a significant impact on my investment Journey firstly by increasing my contribution to $25 per week I'm accelerating the pace at which I buy more shares with more money going into my portfolio regularly I'll be able to purchase additional shares more frequently this means I'll benefit from compounding at a faster rate as each new share I acquire starts generating dividends sooner adding more money every week helps you take better advantage of dollar cost averaging this means I spread out my purchases over time so I buy shares when prices are high and when they're low reducing the impact of big price swings putting in $25 each week is simple and it fits into my budget without trouble and with drip I don't have to worry about remembering to invest it's done automatically by using drip and adding money regularly I'm setting myself up for more growth my portfolio should keep getting bigger over time as I keep putting money in and reinvesting dividends now when it comes to building a successful drip strategy choosing the right stocks is Key by selecting stocks that meet specific criteria you can Ensure the effectiveness of your drip Investments and maximize long-term returns for me I look into these four categories of stocks for my investment Blue Chip dividend stocks dividend Aristocrats high yield dividend stocks and growth oriented dividend stocks in the end I'll show you a selection of stocks using these criteria that utilize the drip strategy and have the potential to turn a small investment of $25 per week into over a half a million portfolio that pays over $5,000 per month but first let's see why these categories of stocks matter Blue Chip dividend stocks are a popular choice for drip investors these are reputable companies with a long history of consistent dividend payments indicating Financial stability and reliability examples include household names like cocacola Johnson and Johnson and Proctor and Gamble you need to start with blue chip dividend stocks for your portfolio they provide a solid foundation for long-term growth because these companies have proven their ability to generate steady income and reward shareholders with dividends secondly dividend Aristocrats are another category of stocks ideal for drip investing these are companies that have increased their dividends for at least 25 consecutive years showcasing a strong commitment to returning value to shareholders stocks like AT&T Exxon Mobile and Walmart fall into this category you need Aristocrats to stabilize your investment strategy over a long period of time since these stocks have been increasing dividends for over 25 years they're not likely to cut back anytime soon these companies have a proven track record of navigating various market conditions and delivering consistent returns to shareholders additionally high yield dividends stocks offer another Avenue for drip investors to explore these stocks typically have higher than average dividend yields making them attractive for income focused investors examples include realy income Corporation ABY Incorporated and Verizon communications while high yield dividend stocks may carry more risk compared to Blue Chip or dividend Aristocrat stocks they make up an important part of the portfolio lastly growth oriented dividend stocks combine the benefits of capital appreciation and dividend income these are companies with strong growth prospects and tend to keep increasing dividends to investors examples include technology giants like Microsoft Apple and Visa if you're selecting stocks using these criteria it'll narrow down the list of available stocks so make sure your stock ticks at least three of the above four boxes based on the above criteria I've selected the following five stocks to boost my portfolio it includes next era energy Starbucks Abbott Laboratories the Home Depot and finally to combine them all pro shares S&P 500 dividend Aristocrats ETF separately their current dividend yield dividend growth and share price appreciation look something like this nexera Energy Incorporated has a current dividend yield of 2. 76% a dividend growth rate of 10. 98% and an annual share price appreciation of 11.
98% Starbucks Corporation is at 3. 01 16. 69% Abit Laboratories at 2.
1% 11. 4% and 10. 31% the Home Depot is at 2.
59% 17. 91% and 16% while pro shares S&P 500 dividend Aristocrats ETF has a current dividend yield of 2. 04% a dividend growth rate of 20.
48% and an annual share price appreciation of 8. 17% if we create a portfolio our portfolio metric might look something like this you can calculate this by simply summing all the individual metrics than dividing by five do the same for current dividend yield growth and share price appreciation with that the portfolio has a current dividend yield of 2. 5% a dividend growth rate of 15.
49% and an annual share price appreciation of 10.
