| Free Article |
Dividends as Your Personal Stimulus Package
by David Van Knapp, author of
SENSIBLE STOCK INVESTING:
How to Pick, Value, and Manage Stocks
and
THE TOP 40 DIVIDEND STOCKS FOR 2010:
How to Generate Wealth or Income from Dividend Stocks
November, 2008
As anybody knows who has not been living inside a cave the past couple of
months, the United States government has entered a bailout/stimulus mania
phase in an effort to save the economy.
Among other actions, the U.S. has spent $29 Billion to bail out Bear Stearns
(that is, to finance its purchase by JPMorgan Chase); $85 Billion for AIG; and
$700 Billion to banks to buy up toxic debt assets.
Along with bailouts of the big boys, one direct-to-citizens stimulus package has
been implemented, and a new one is being discussed. The first one involved
sending government checks directly to citizens to spend.
Many Americans are incensed that so much taxpayer money is being loaned or
given to institutions. Wall Street cheats Main Street yet again. What about
individuals, they cry? Must not a real solution to the financial crisis begin with
individuals? After all, they started this mess, taking out mortgages they could
not afford! So the government is considering another stimulus package, maybe
$300 Billion directly to individuals—effectively a tax decrease and (yes, admit
it) a redistribution of wealth.
Meanwhile, quietly, there has been a massive redistribution of wealth going on
for years. There’s been so little publicity about it, it is as if the elite media—and
even the regular media—are deliberately hiding it, in complicity with those who
are perpetrating it. But it has been happening right under our noses, and hardly
anybody reports it or acknowledges it. It’s America’s dirty little secret, a
byproduct of—gasp!—capitalism!
Have you guessed?
It’s dividend distribution. That’s right, in 2008, according to the latest S&P
estimate, companies in the S&P 500 will distribute almost $245 Billion in
dividends to their shareholders. Who knew?
And they’ve been doing it for years. Last year, $247 Billion. The year before
that, $225 Billion. From 1995 through the end of 2008, over $2.2 Trillion will
have been redistributed by companies in the S&P 500 to their shareholders. The
nastiest part of it all? You have to be a shareholder to get any of it! Who made
up these rules?
Want to create your own stimulus check? Get a little piece of bailout money for
yourself? Buy a good dividend-paying stock and hang onto it. Amazingly, every
month or quarter, they will send money! To you! It’s almost like having Ed
McMahon show up at your door!
Go ahead. Buy a dividend stock. You can show those big shots.
by David Van Knapp, author of
SENSIBLE STOCK INVESTING:
How to Pick, Value, and Manage Stocks
and
THE TOP 40 DIVIDEND STOCKS FOR 2010:
How to Generate Wealth or Income from Dividend Stocks
November, 2008
As anybody knows who has not been living inside a cave the past couple of
months, the United States government has entered a bailout/stimulus mania
phase in an effort to save the economy.
Among other actions, the U.S. has spent $29 Billion to bail out Bear Stearns
(that is, to finance its purchase by JPMorgan Chase); $85 Billion for AIG; and
$700 Billion to banks to buy up toxic debt assets.
Along with bailouts of the big boys, one direct-to-citizens stimulus package has
been implemented, and a new one is being discussed. The first one involved
sending government checks directly to citizens to spend.
Many Americans are incensed that so much taxpayer money is being loaned or
given to institutions. Wall Street cheats Main Street yet again. What about
individuals, they cry? Must not a real solution to the financial crisis begin with
individuals? After all, they started this mess, taking out mortgages they could
not afford! So the government is considering another stimulus package, maybe
$300 Billion directly to individuals—effectively a tax decrease and (yes, admit
it) a redistribution of wealth.
Meanwhile, quietly, there has been a massive redistribution of wealth going on
for years. There’s been so little publicity about it, it is as if the elite media—and
even the regular media—are deliberately hiding it, in complicity with those who
are perpetrating it. But it has been happening right under our noses, and hardly
anybody reports it or acknowledges it. It’s America’s dirty little secret, a
byproduct of—gasp!—capitalism!
Have you guessed?
It’s dividend distribution. That’s right, in 2008, according to the latest S&P
estimate, companies in the S&P 500 will distribute almost $245 Billion in
dividends to their shareholders. Who knew?
And they’ve been doing it for years. Last year, $247 Billion. The year before
that, $225 Billion. From 1995 through the end of 2008, over $2.2 Trillion will
have been redistributed by companies in the S&P 500 to their shareholders. The
nastiest part of it all? You have to be a shareholder to get any of it! Who made
up these rules?
Want to create your own stimulus check? Get a little piece of bailout money for
yourself? Buy a good dividend-paying stock and hang onto it. Amazingly, every
month or quarter, they will send money! To you! It’s almost like having Ed
McMahon show up at your door!
Go ahead. Buy a dividend stock. You can show those big shots.
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