My Dividend Policy Plan

There are loads of get rich quick schemes out there from tipsters recommending the next ten bagger to various ponzi schemes which are pretty much all shams and have no way of success. Get rich quick schemes don't work and don't even get you rich slowly, if it looks too good to be true it generally is. Well having lost enough cash on attemping to pick the next explosive growth story I have gradually changed my investing strategy over the years to one which will offer me a continual and increasing income stream without the exposed risk these get rich quick schemes sell you.

So this is my dividend policy plan that will furnish me with the less scary and less risky ride to riches. As well as possibly offering capital gains, which we all aspire to benefit from, there are bucket loads of stocks that pay us cash as dividends when we own them which is very kind of them. These dividends can vary from anything between 0% to up to 10% and even more. These dividends get paid out at regular intervals and are normally paid out twice a year with an interim dividend and a final dividend. However they can be paid out more frequently, BP and Glaxosmithkline for example pay 4 dividends a year (1 each quarter). It is stocks that show positive dividend growth over the years that are the stocks that interest me. Dividends are all dictated by the board of a company who decide the dividend policy of the company which is the backbone of my plan. Following this ethos I'm looking primarily for high dividend stocks that have a dividend policy of increasing the dividend yield each and every year. If the dividend were to remain the same with no growth then ultimately this would become worthless once a few years of inflation gets hold of it.

These do tend to be less exciting shares and tend to be defensives. They therefore aren't going to make a fortune overnight but for those in for the long term, which I am, can see a steady but positive (hopefully) increase in the value of stocks leaving a healthy increase and nice pot of cash along with regular income for doing very little. I am confident that this dividend policy plan will give good positive results in the long term.