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......
• Are Jim Cramer's Stock Picks Worthless? According to a recent article by Barron's Magazine title The Cramer Effect (& Defect), readers who follow Jim Cramer's stock picks from his show are more than likely to lose money in the long run.We also looked at a database of Cramer's Mad Money picks maintained by his Website, TheStreet.com.......
• How To Short A Stock From my previous posts, you can tell I'm losing money being short on a stock that is defying all expectations and has gone up 20% since the day I jumped in. I'll admit, I'm not too bright and always forget to follow advice which I know to be true. Here's......

• 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).......
• Some Tech Bubble Stocks Finally Breaking Even after a 10 Year Wait This week, Amazon.com released a great earnings report that propelled the most well known "internet stock" to a new all time high. As a person who experienced the internet stock bubble firsthand, Amazon's stock popping 25 points in a single day gave me a little feeling of nostalgia considering that......
• Do The Rich Pay Their Fair Share In Taxes? Ah, the age-old question:  do the rich pay their fair share in taxes?  Many liberals argue that they don't, saying the rich owe their success to the efforts of the poor and middle class and should bear a higher percentage of the tax burden in gratitude.  On the opposite side......

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