A Do It Yourself Income Fund - Buy and Hold Plus

Description

This week's issue of Barron's cover story is titled 10 Terrific Dividend Stocks . It talks about how the market's recent drop has made it possible for investors to purchase "high quality dividend paying and dividend growing stocks" at a discount.

That got us thinking. With money market yields miniscule -- the average money market account is yielding just 0.31 percent -- why not use those dividend stocks to create an income fund on your own? Of course, unlike a money market account, the principal amount will fluctuate, as the stocks in that portfolio will change in value. But if you're looking to generate income from your stocks and not as concerned about day to day fluctuations in the price, then you can use high quality dividend stocks as a proxy for a money market account.

What we did here is look at the companies that Barron's listed as its ten best dividend stocks, and we also looked at the additional ten that they provided. We wanted to make sure that anyone putting this together would get income every month. ...

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http://buyandholdplus.com/blog/2009/11/a-do-it-yourself-income-fund.html

http://buyandholdplus.com/blog/2009/11/a-do-it-yourself-income-fund.html