time to put money into the stock market

Investing in the stock market is more crucial than anything else. In addition, your stock market investment strategy should be based on your intended outcomes. Are you looking to earn income from dividend-paying companies or just want to see your investment grow in value? The alternative is to put money into the stock market with the hopes of earning dividends and capital appreciation. Do you want to invest in a variety of equities or use a mutual fund?
Do you put all of your money into stocks and mutual funds at once or do you buy them at varying prices over time, a strategy known as dollar-cost averaging? Are you getting a good return on investment (ROI) from all of your investments, or are they spread too thin? When you buy stocks, do you have to pay a commission? Does your mutual fund(s) incur load fees? How much are the "hidden fees" (administration, operating, and marketing costs) that your mutual fund(s) impose on you? (Recently, a mutual fund was fined 450 million for engaging in tactics that were referred to as "hidden fees.") Your return on investment (ROI) is determined by "how" you invest in the stock market, not by "when" you invest.

Once you have a strategy in place that considers the aforementioned variables, you may begin investing in the stock market. You and your loved ones should be the only beneficiaries of your investment capital, period.
Some Wall Streeters make six figures or more thanks to the vast sums of money that investors put into the market. After his compensation for the past two years became public knowledge, Richard Grasso, the former head (CEO) of the New York stock exchange, was compelled to leave in the summer of 2003. His compensation has been 12 million dollars each year for the past two years. His advisor suggested that he return a cheque for 48 million dollars, which he dutifully did. However, as of this writing (mid-2004), he still hasn't returned a pay-package of 139.5 million dollars. Sure, it's good money if you can get it, but that's just one man's income on Wall Street! His salary is quite large; where did all that cash come from? Pension fund managers threatened to withdraw billions of dollars from the New York stock exchange over Grasso's income. If the money didn't originate from investor dollars, then why were they so outraged? I have no idea how they were able to pay his wage. I do know that the stockopoly investor was the only one from whom the money for his compensation did not originate. Exactly 0 dollars!
If it were feasible, I would prefer that there be no commission fees associated with buying stocks. All stock investments should be made with the long-term in mind, and it is important to look for companies that have a track record of increasing their dividend annually. It is recommended that all dividends be reinvested into the company's shares, without fee, until retirement. Get the most out of every dollar you spend. The "HOW" of investing becomes second nature when you buy into companies with a track record of consistent dividend increases (ex. Comerica - 34 years, Procter & Gamble - 47 years, BB&T - 31 years, GE - 28 years, Atmos Energy - 16 years; these companies also offer a 3% discount on all shares bought through dividend reinvestments). You then simply dollar-cost average into your holdings every quarter using the dividends provided by these companies.
A corporation can't "fudge" the dividend. In order to pay the shareholder, the funds must be available. There must be something great with a corporation if they can increase its dividend each year. Since a lower stock price for that company simply means a higher dividend yield, investing in a company with a history of increasing their dividend every year is a way to reduce risk. If, for instance, the price of a share of stock you bought for $50.00 suddenly lowers to $36.00, you can get more "bang for your buck" out of your dividends by reinvesting them, and the income they generate accelerates. The stock market has been through a lot of ups and downs in the last 47 years (I should know, I've been through nearly 40 of them), but Procter & Gamble has increased their dividend every single year.
Presented here are two hypothetical stock market investors, each with $10,000 to their name. The first one invests all at once, while the second one uses dollar-cost-averaging. Unlike the dollar-cost averaging investor, the first one isn't concerned with dividends. Though they invested at separate times, the "HOW" was identical for both investors. Assume they both put money into the market at the same time, buying $50 worth of stock at the beginning of the year and seeing a $2.00 reduction in value each quarter until the stock price reaches $36.00 before rising again to $50.00. Investor A bought shares in the hypothetical company ABC, which doesn't pay dividends, while Investor B used dollar-cost-averaging to buy shares in the hypothetical company XYZ, which does pay a quarterly dividend of 50 cents per share (a yield of 4.0% per annum) and has raised its dividend payment each March for the last 41 years running. January saw the purchasing of both items.
The investor put $10,000 into 200 shares of ABC at $50 per share, saw the stock fall to $36 per share, then rise back to $50 per share, and ultimately ended up with the same amount of money he invested.
The investor who opted to purchase 100 shares of XYZ at $5,000.00 in January (the stock pays a quarterly dividend of 50 cents per share for a 4.0 percent annual dividend yield) and continued to buy 1,000.00 worth of shares every quarter for the following five quarters. The corporation also reinvests its quarterly dividends into the stock at a higher price per share. The dividend has been increasing for 45 years in a row, with each March seeing a 2 cent increase. It was free of charge to make any purchases.
If you buy 100 XYZ shares in January at $50 each, you'll have $5,000. The stock price for one share is $1,000.00. Buying Dividends Investment in Stocks
March: $48.00 (equivalent to 52 cents per share) 20.83 shares out of 1,083
May: $46,000 (equivalent to 52 cents per share) 13,378 shares, or 21.74 percent
September — $44.00 (equivalent to 52 cents per share) 2.272% of the population
December: 42 dollars, or 52 cents per share 2.098 x 23.81 = 23.81 portions
Cost: $40.00 (or 54 cents per share) since March 2.637 shares valued at $25.00
In June, the price was $38.00, or 54 cents per share. $3.169 - $0.36 (equivalent to 54 cents per share) on September $38.00 (54 cents per share) on December 31st, after taxes (-3.393) 3.262% - 0% - March four thousand dollars (56 cents per share) June — $3.260 — 0 — $42.00 (56 cents per share) Shares were 56 cents each, and the price was $3.149 on September. 3.045 - 0 - $48.00 (56 cents per share) in December $50.00 (58 cents per share) in March 2.827 - 0 2.843% - zero

With the dollar-cost-averaging strategy, the investor now has 247,953 XYZ shares. A share valued at $50.00 would be worth $12,397.65.
Thus, the initial investment of $10,000 in 200 shares of ABC remains with the lump-sum investor, while the 247.953 shares of XYZ, valued at $12,397.65 (plus dividend income), are owned by the investor who utilised dollar-cost averaging. They both invested at the same time.
A quarterly dividend yield of 58 cents (.58 divided by $50.00 x 4 x 100 = 4.64%). In spite of fluctuations in the stock price from quarter to quarter, the company's dividends were consistently higher than those of the preceding quarter. No matter what happens to the stock price, the dollar-cost-averaging investor will receive a dividend of $143.81 from XYZ for the next quarter. If the company maintained their dividend, the dividend would be even higher the following quarter and every quarter after that. The way you invest in the stock market is crucial, even if XYZ and ABC maintained the same performance history ($50.00, $36.00, $50.00) for the following three years.
Every stock in the Stockopoly plan can be bought without paying a commission. There are no hidden fees, load fees, running, management, or advertising costs, and you can perform your own research with the help of the readily available tools and instructions in the book. You also won't need a stockbroker. Investors have lost tens of millions of dollars due to unethical trading techniques. (And you won't have to worry about paying for the Wall Street Christmas bonuses.) In the form of growing weekly, monthly, and annual cash dividends, every cent works for you. Even if a stock is trading at its 52-week high, you should never pay more than it is worth. understanding HOW to invest in the stock market is more important than understanding WHEN to participate in the market, because the former dictates the latter.
The Stockopoly plan lays out all the steps you need to take to create a foolproof investment strategy that will bring in lifelong wealth for you and your loved ones.

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