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Investing in Dividend Paying Stocks
By Charles O`Melia


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Many people in the UK, in fact as many as one in three UK taxpayers have paid too much tax! Greer & Taylor LLP a respected and trusted accountancy service provider has just launched a new website The Taxation People which can be found at www.thetaxationpeople.com the new online tax refund service is dedicated to getting the maximum legal tax refunds for indviduals whatever the circumstances on a `No Win No Fee` basis The Taxation People offer a online service, with a simple and easy to follow process that will guide you along the way as you get the refund you are entitled to. In the `my account` section of their site you can track the progress of your refund application and ask questions using a secure service. I would urge you to check out www.thetaxationpeople.com, where you can enlist the help of the The Taxation People who will get you the Tax Refund you are entitled to. Greer & Taylor LLP will be following up the success of their Tax Refund service The Taxation People by launching a cost effective Self Assesment Service, keep an eye on www.greer-taylor.com for more information.

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Another bill has just landed through the letterbox and your still haven`t paid the monthly direct debt to the utility firm. You`ll have to sort out funds for your credit cards next week and then there are the catalogue payments to make. It`s the same story each and every month where you struggle to keep on top of your regular payments. Having taken out dribs and drabs of loads over the last few years you now have to pay a number of companies back. What if you could amalgamate all of your loans into one fixed monthly payment? Suppose you could reduce the amount that you pay each month by spreading the payments over a longer period of time. Look into the various Homeowner Loansthat are available at the moment and you could end up paying less in repayments each and every month. Price comparison sites are the places to look if you want one of the Homeowner Loans. They`ll scour the marketplace searching for Homeowner Loansthat will suit your individual needs. Combine all of your debts into one slightly larger loan amount and you should have more money each month that can be put away for a rainy day.


I was recently interviewed for a press release through a financial question and answer format. One of the questions asked of me in the interview was:

Where do you think the stock market is headed over the next five years?

My Answer!

Charles M. O?Melia: No one knows! There is an old Chinese proverb that goes something like this: ?He, who could foresee events 3 days in advance, would be rich for thousands of years.? On a long-term basis I have only witnessed expansion and progress. I believe that to be the nature of our American economy and our American way of life. And as our economy goes, so goes the stock market and I see no reason to change that belief.

Who would have thought the expansion in China would generate 5 billion dollars of business for GE? The US companies listed on the New York stock exchange have the ability to profit throughout the global expansion of business around the world. And, an investor can profit without the necessity of having to own an overseas fund or companies to profit.

Up until that question, the thought of what the market was going to do tomorrow (or for that matter, 5 years from now) have never concerned me. I never gave it a thought (Well, maybe a little!). There just isn?t enough concern on my part whether we are heading for a bear market or a bull market, or if the markets are heading sideways.

When you own a portfolio filled with companies that have a history of raising their dividend every year, and a systematic approach of adding more shares to the portfolio through the dividend reinvestments every quarter, plus having a simple savings plan with an opportunistic buying approach of adding even more shares to the portfolio every quarter, it really doesn?t matter. I am always buying more shares.

Sometimes I pay too much for one of my companies; sometimes I receive a great bargain. But no matter which, bargain or expensive, my income from those companies always continues to grow and grow and grow and grow and grow.

Sometimes, the dividend yield of one stock may be 5.15%, and the following year or two (even with two dividend increases during those two years) the dividend yield would drop to less than 3%. This, for example, may mean the stock price would have risen from the 30 dollar range to the 60 dollar range. I have found that when that 5.15% dividend yield drops to around 1%, the company?s stock in question becomes so high that the company usually has a stock split, as well as a dividend increase.

Right now, the DOW seems to be having trouble breaking that 11,000 barrier. And, right now, I can?t help thinking back, way, way, back.

For those of you who don?t remember the late 1960?s, early 70?s, the DOW barrier was 1,000.

Oh, what a tough time that DOW 1,000 barrier was! I remember thinking ? it?s going to break it this time. Back in 1966 was the first attempt (rose to 985) and it kept on trying to break 1,000 for the next 6 years. When it finally broke 1,000 (it reached 1,050 or so in 1972), it immediately fell back. It took another 10 years before the DOW broke the 1,100 barrier. Six years for the DOW at 985 to break 1,000. Another 10 years to break 1,100. A total of 16 years to add a mere 115 points on the DOW.

So, is the 11,000 barrier in the DOW today similar to the 1100 barrier of times-gone-by? Will 11,000 on the DOW become a 16 year barrier? Could be! Then again, maybe not! I don?t know! ?He, who could foresee events etc.?

In the meantime, I will continue watching my dividend income continue to grow and grow and grow and grow and grow!

To find the LINK for the complete financial interview visit:
http://www.thestockopolyplan.com

You have permission to this article either electronically or in print as long as the author bylines are included, with a live link and the article is not changed in any way. Please provide a courtesy emailto: charles@thestockopolyplan.com telling where the article was published. (Word Count 706)

For more information about this article and/or the author visit http://www.thestockopolyplan.com

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