Financial Independence has nothing to do with your net worth (assets less liabilities). There are many millionaires who are not financially independent. If they lost their 6-to-7 figure incomes from their jobs or professional careers, many would have to file for bankruptcy. Many millionaires work every day to pay their mortgages on several homes, yachts, and all their other expensive trappings of perceived wealth; they are slaves of the banks, who they pay their mortgages to; they are slaves of government who they pay their Federal and State Income Taxes, Medicare and Social Security Taxes, and the ever-increasing Real Estate Taxes on their lavish homes. If they must work at their jobs or professional careers to maintain their lifestyle, they are not financially independent.
Real wealth is a cash flow generated from passive investments (e.g., DRIPs) that exceeds your expenses necessary to support the lifestyle of your choosing. You do not have to go to work. You may wake up at 6:00 am or noon. You may travel and live anywhere, and your passive income/cash continues to flow into your bank account 24/7 regardless of whether you are awake or asleep.
Once you become financially independent, you may choose to continue working; you may start another career or business; you may decide to go back to school; you may start a charitable foundation; or you might just want to do nothing but travel and see the world. Once you have obtained financial freedom, you are no longer a slave and can do whatever you want. The choice is yours!
And it bears repeating, “For those investors who adopt ten and fifteen-year horizons, the dividend investment strategy [DRIPs] will lead to financial independence for life. Regardless of the direction of the market, a constant and growing dividend is a never-ending income stream.”
For a complete explanation of the DRIP strategy and how you can easily implement the program yourself without financial planners, brokers, or money managers, read The Best Kept Secret to Financial Freedom, Amazon.com: The Best Kept Secret to Financial Freedom eBook : Beard Jr., Robert G.: Kindle Store.
We encourage everyone to buy a DRIP a week or at least monthly. Get your children and grandchildren involved early. It doesn’t matter if you buy 10 shares or 100 or more shares at a time, just do it! If you follow the program, you can become financially independent within 10-to-15 years regardless of the direction of the stock market. You are buying an income stream or dividends that will ultimately replace your wages or self-employment income; you are not buying a stock at a price hoping that someone else will come along later and pay you more for it.
Since our June 7, 2024, Blog—When the Market Declines, DRIP Yields Rise—we have added the following two Contenders to our list of Great Businesses to Buy Now:
· Best Buy Co Inc (BBY) - $86.27 per share, yield 4.37%, paid/raised 21yrs – 18.53%
· CubeSmart (CUBE) - $47.37 per share, yield 4.46%, paid/raised 15yrs – 11.69%
Best Buy (BBY) is your opportunity to participate in the AI revolution. In mid-June, Microsoft (MSFT) started selling its Copilot+ AI-enabled laptops and personal computers. Best Buy is “the exclusive retailer for 40% of the line, and the company is training more than 30,000 employees on the new AI computers in order to provide technical support and in-store demonstrations.”
In addition, Best Buy will also be selling AI computers from Dell, Samsung, and Google. Laptops and mobile devices make up 45% of Best Buy’s revenue. Best Buy also has a robust business selling other electronics and appliances, which looks very promising based upon housing trends over the next few years.
There are more than 1,100 Best Buy stores in the U.S. and Canada, yet 38% of its sales are online, competing with Amazon, by offering in-store pickup within 30-minutes; and Best Buy will match Amazon’s prices. That is, if Amazon is offering an item for less than Best Buy, show an employee and Best Buy will match Amazon’s price.
What should you do? Buy BBY NOW and support your new Great Business by shopping at Best Buy!
For those of you who have been with us for several years or more, you most likely bought Microsoft (MSFT) when it was affordable, e.g., dividend yield above 3%. Because of this ownership and continued reinvestment of its dividends, you are already participating in the AI revolution!
If you want more information on CubeSmart (CUBE), go to the Dividend Channel, https://www.dividendchannel.com, and enter CUBE in the Search box. However, the only information of importance is that CUBE has paid and raised its dividend for 15 years at an average annual dividend increase of 11.69%, with a current yield of 4.46%.
Here’s our current listing of Great Businesses to Buy Now:
1) Johnson & Johnson (JNJ) - $149.88 per share, yield 3.31%, paid/raised 61yrs
2) ExxonMobil (XOM) - $113.27 per share, yield 3.36%, paid/raised 41yrs
3) Coca-Cola (KO) - $63.70 per share, yield 3.07%, paid/raised 61yrs
4) Kimberly-Clark (KMB) - $141.53 per share, yield 3.46%, paid/raised 51yrs
5) PepsiCo (PEP) - $166.38 per share, yield 3.31%, paid/raised 48yrs
6) Archer Daniels Midland (ADM) - $64.28 per share, yield 3.11%, paid/raised 46yrs
7) Clorox Company (CLX) - $136.40 per share, yield 3.56%, paid/raised 46yrs
8) Franklin Resources (BEN) - $23.20 per share, yield 5.37%, paid/raised 43yrs
9) Enbridge Inc (ENB) - $36.10 per share, yield 7.50%, paid/raised 26yrs
10) Int’l Business Machines (IBM) - $182.83 per share, yield 3.75%, paid/raised 28yrs
11) Medtronic PLC (MDT) - $77.95 per share, yield 3.55%, paid/raised 46yrs
12) T Rowe Price (TROW) - $118.02 per share, yield 4.23%, paid/raised 37yrs
13) Bank OZK (OZK) - $42.84 per share, yield 3.69%, paid/raised 27yrs
14) Enterprise Products Partners (EPD) - $29.40 per share, yield 7.19%, paid/raised 26yrs
15) Prudential Financial (PRU) - $123.27 per share, yield 4.25%, paid/raised 15yrs
16) Cisco Systems (CSCO) - $47.38 per share, yield 3.42%, paid/raised 13yrs
17) Main Street Capital (MAIN) - $51.48 per share, yield 5.66%, paid/raised 13yrs
18) AbbVie Inc (ABBV) - $170.28 per share, yield 3.65%, paid/raised 13yrs
19) Arbor Realty Trust (ABR) - $12.89 per share, yield 11.08%, paid/raised 11yrs
20) Associated Banc-Corp (ASB) - $21.78 per share, yield 4.07%, paid/raised 12yrs
21) Cogent Communications (CCOI) - $64.98 per share, yield 6.08%, paid/raised 11yrs
22) Tyson Foods (TSN) - $57.32 per share, yield 3.45%, paid/raised 12yrs
23) HP Inc (HPQ) - $36.73 per share, yield 3.05%, paid/raised 14yrs
24) MPLX LP (MPLX) - $41.91 per share, yield 8.13%, paid/raised 12yrs
25) Gaming and Leisure Properties (GLPI) - $48.14 per share, yield 6.50%, paid/raised 10yrs
26) NextEra Energy Partners (NEP) - $28.64 per share, yield 13.01%, paid/raised 9yrs
27) Hess Midstream LP (HESM) - $38.10 per share, yield 6.92%, paid/raised 7yrs
With our two new recommendations (BBY and CUBE), you have a choice of 29 Great Businesses to Buy Now!
If you are interested in becoming financially independent, desiring freedom from the 9-to-5 daily grind within the next 10-to-15 years, keep buying DRIP stocks. If you are already retired and don’t want to out-live your money, create a DRIP portfolio, which may allow you to pass on generational wealth. And, if you want your children and grandchildren to obtain financial independence early in their lives, no matter what job or career they choose, and no matter how many mistakes they may make along the road of life, get them started early!
Dum Spiro Spero—While I breathe, I hope.
Slàinte mhath,
Robert (Mike) G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.