Top Dividend Stocks For Big Returns

Beating The Market with Top Dividend Stocks Investing

Stock investing in top dividend stocks which provide steady growth and earnings each year happens to be the ultimate goal for most traders. Investing in high quality and top dividend stocks has been an excellent way for traders throughout various times in stock market history to make good profits and income. Investing in a varied listing of top dividend stocks like Procter and Gamble (PG), Clorox (CLX), XOM (Exxon Mobil), 3M Company (MMM), and diverse other strong company stocks is a sound and proven approach.

The stock market is currently in a strong bull phase in early 2012 but it will get some pullbacks this year. Those pullbacks will present more buying opportunities to pick up some of the top dividend stocks at better prices. It will likely be uneven and choppy price action in the spring and summer with possible dips over 5% on a couple of occasions.

But we feel the worst has ended for now if Europe can continue to get strong action from the ECB and the top European leaders. During the future occasions of uncertainty and double dip fears, investing in steady, conservative top dividend stocks should be a good way to ride out any market dips.

The pullbacks in the top dividend stocks are typically less than the general stock market and the upside performance is generally better. In addition, the returns from the top dividend stocks give steady appreciation and a safe income stream. In fact, the dividends from the top dividend stocks will normally grow with quarterly or yearly dividend increases.

Use Market Timing To Boost Top Dividend Stocks’ Returns

The important concept for just about any investment is market timing. You have to understand stock market and business cycles. The investment entry and exits need to be timed correctly during these cycles. Clearly, the time in the early 1980’s to year 2000 was a strong growth cycle (secular bull market) for American companies, top dividend stocks, and also the stock exchanges generally. The last twelve years happen to be much more of an uneven and slow growth cycle that lots of people would say is a part of a bigger secular bear market. The verdict is still out on whether we are in the beginning of a bull market that will be good for top dividend stocks.

However, it should be stated that there have been good quality years for top dividend stocks during that twelve year period as well. For instance, from early 2003 to late 2007, top dividend stocks were inside a strong and steady recovery from the 2000-2002 collapse. And from March of 2009 until early 2010, the snap back recovery from the collapse of 2008 provided a strong recovery for many of the top dividend stocks.

Investing immediately after market collapses in high quality dividend stocks has been quite lucrative for investors. The first snap back is generally very good for the markets and the top dividend stocks. Then the market must digest and consolidate gains for several weeks or even months before moving up higher. Those consolidation phases are also good times to pick up top dividend stocks.

The very best strategy for investing in dividend stocks for your portfolio is to be consistent and steady with buys of the top dividend stocks, especially on market downturns, and also to always reinvest the dividends to buy more stock. This is how the top dividend stocks can produce very strong compound returns.

Momentum Rider is going to share with you a diversified dividend buy list that meets our strict criteria for the top dividend stocks. The portfolio is balanced across numerous industries and it has a strong multinational company bias.

Market Beating Top Dividend Stocks Portfolio:

Combinations of these top dividend stocks should do very well for anyone looking to make money from investing in the equities. Finally, go to our products section to look at numerous MR dividend subscription services and our top dividend stocks model portfolios.