Photo credit: Flickr/Aaron Patterson
Individual investors have one incredible edge on Wall Street. We refuse to believe that buying to hold a stock for the long term is a thing of the past. Not only is that the secret to market beating returns, but it's the secret to securing incredible retirement income.
I've been buying to hold solid dividend paying stocks for years now. What I've found to be incredible is that while these companies offered solid dividend yields when I first invested, these yields have become enormous as I've held on over the past few years. Three of my best are ConocoPhillips (COP 1.23%), Enterprise Products Partners (EPD 1.41%), and Phillips 66 (PSX 0.91%).
For example, while ConocoPhillips currently yields a very respectable 3.5% I'm earning an even more generous 6.28% on my original investment in the oil and gas giant. On top of that I received shares of Phillips 66 when ConocoPhillips spun it off. Investors purchasing shares of Phillips 66 today can nab a yield of about 2.4%. But by simply holding the shares of Phillips 66 I received from ConocoPhillips I'm earning an incredible 9.23% yield.
On top of that my income in Enterprise Products Partners has grown each quarter as the company has raised its distribution to investors every single quarter that I've owned units. Because of that the yield on my original investment is now up to 10.45%.
To uncover the secret as to why companies like ConocoPhillips, Phillips 66, and Enterprise Products Partners are great at growing dividends I've created the following slideshow. It tells my story of what how holding these companies is yielding incredible income growth as well as why I'm confident these dividends will keep growing in the years ahead.
