Dear Reader,

You’ve likely seen the clickbait headlines talking about “the only dividend stock you’ll ever need." Please, don’t fall for it.

Hello, Kelly Green here.

I’m the senior editor who heads up Mauldin Economics’ free income investing newsletter called Dividend Digest.

To be clear, dividend investing is not a one-stock decision. There are several types of dividend stocks, and you need to know their unique qualities in order to achieve your goals.

That’s why I follow a dual-track system to make income investing simple and straightforward.

In short, dividend stocks should be split into two baskets: Bedrock stocks and Current Yield stocks. This lets you identify the best stocks to use for each financial goal.

Bedrock stocks are the companies that work best for long-term wealth building. These stocks have a proven dividend history, and in most cases, a track record of increasing their dividend.

To make this money work to its full potential, we reinvest the dividends to put the power of compounding to work in our portfolio. It gives us leverage without adding risk. And over time, can unlock exponential growth.

Take McDonald’s (MCD) as an example of how this works:

And it’s just one stock that demonstrates how reinvesting allows your money to work even harder for you. We can’t do that by switching to a CD or high-yield savings account. Why? Because when rates fall, then what?

That brings us to the second basket: Current Yield stocks.

Current Yield stocks are companies that pay a solid income. You might only hold some of these shares for one year. While others could turn into Bedrock stocks that you own for decades. What they usually have in common is higher yields, putting more money in your pocket right now.

There are many Current Yield stocks that pay 5% to 10% yields.

In my free weekly newsletter, Dividend Digest, I send out deeply researched income ideas along with occasional dividend stock recommendations that fall into one of these two buckets.

To start getting my Dividend Digest, sign up here.

As a special bonus, when you sign up, you’ll get access to my all-new Dividend Quick Start video series as a gift.

In it, I’ll show you how to add some of my favorite wealth-building and high-yield stocks to your portfolio and much more. All presented in a clear, jargon-free manner.

I encourage you to go here to sign up for Dividend Digest. It’s completely free. I’d love to help you discover the power of dividend income investing in 2024.

For more income, now and in the future,

Kelly Green
Senior Editor, Dividend Digest
Mauldin Economics