The Simplest, Safest Way To Earn 14.6% Per Year From Stocks

 | May 19, 2021 05:10AM ET

Let’s chat about making some real money in stocks. I’m talking about 14.6% returns per year, every single year.

I know, my 14.6% annual number sounds pedestrian in a world where peddlers are hawking virtual (pretend?) coins with pups on the cover. But my returns are real—and spectacular for investors who are patient.

With this method we can double our money every four years and ten months (the wonderful Rule of 72 says so!). And we can achieve these gains safely—without gambling or buying and hoping—because these profits are fueled by dividends.

The only twist from the traditional income investing that we both know and love is that we’re playing the dividend growth plus the current yield. In a way, we can think of it as “second-level” dividend investing.

Here’s an example. I recently pointed out that hospital landlord Medical Properties Trust (NYSE:MPW) is poised to deliver 9.4% to 10.4% returns per year, every year, for the foreseeable future.

But the stock only pays 5.4% today. So where did I come up with the extra coin?

Well, MPW raises its dividend every year. In fact, the company has hiked its payout six times in the last five years. It is skillfully playing a game of “Hospital Monopoly” where it adds assets regularly. These new hospitals boost the firm’s cash flow and then management, in turn, hikes the dividend:

h2 MPW Raised Dividends Six Times In Five Years