LIVING OFF DIVIDENDS & PASSIVE INCOME

Now that the market dropped like a sack of potatoes, Cramer has some good advice. (Of course hindsight is 20-20, but still its good advice!)

You only have a couple of protections from the whims of a broken system:

1. A company that pays you a dividend that is equal to or better than Treasuries after taxes is a good defense.
2. Or you want a stock that has a valuation so low that you know it’s a bargain — and its management knows it’s a bargain (read: it’s buying back stock right here).
3. Last chance: a company that is so defensive in nature that even if there’s a worldwide slowdown, it will meet expectations regardless: Coke (KO), Pepsi (PEP), Altria (MO), Kellogg (K), General Mills (GIS), Clorox (CLX) and Colgate (CL).

If you don’t anything that fits one of those three criteria (I’d rather have two or three per company) you will not be OK for now. That’s because we are now going to have people who just say, “Wow this is too crazy, let me out of here!”

But nobody ever made a dime panicking. This time will be no different, but only if you are shrewd about what won’t hurt you and what can work in a volatile and down environment.

In India, stocks like Colgate, Johnson & Johnson, Proctor & Gamble and Unilever are called blue-chip stocks that never go out of business because they make stuff everyone needs and uses. Maybe I should stop looking at their prices everyday and finally buy some!

• Common Sense Advice For Investing In The Stock Market Given the poor performance of the stock market in 2008, its time to go back to the investment basics and make sure you don't forget the important stuff. 1. Only invest in companies that pay a decent dividend (at least 3%) and that have a long history of increasing their......
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• Invest in Insurance companies? Insurance companies have taken a beating with all the damage caused by all these hurricanes. Maybe its time to start investing in their stock. We know that a lot of damage has already been done and in New Orleans it won't happen again. [Mainly because nothings being rebuilt!]. Also historically......

• Three Myths of Stock Trading   I've made a living as a Stock Trader for over 15 years, and have really learned the ins and outs of the business. But I didn't make my start at a big brokerage firm that taught me everything through slick training course. I made it through trial and error,......
• Why Certificates of Deposit Are A Good Idea Today's article is written by guest blogger Jim of Bargaineering. If you've saved up a few dollars and aren't sure if you should put them in the stock market or stick them in your mattress, let me give you another suggestion: put your funds into a certificate of deposit (CD).......
• A History Of Rising Dividends: Attributes Of A Good Dividend Stock Welcome to part II of my series examining the attributes of good dividend stocks.  The first thing to look for when analyzing a dividend stock is its dividend history.  A long record of rising dividend payments shows discipline, sensible capital allocation, and demonstrates management's commitment to shareholders. Earnings You Can......

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