DISCLAIMER -  I am not a Financial Advisor and do not work for any Brokerage Firm.   The opinions given are of my own and are not to be used as professional advice.  These are my findings and can hopefully help you to make informed decisions on investing.   Consult a Broker or Lawyer before making any investment..

As we plan out how to invest our money to get our maximum returns, we need to make use of a special group of stocks making up the REITs category.  If you do not have some money invested in Real Estate, this is a very effective method to make money.   We did an article explaining REITS a while back.  
​
Read about Reits here.

Today we are going to talk briefly about Business Development Companies.   Many of these are tied to Reits, but they also provide capital for other business uses besides Real Estate.

What Is a Business Development Company (BDC)?

A business development company (BDC) is an organization that invests in small and medium-sized companies as well as distressed companies. A BDC helps these firms grow in the initial stages of their development. With distressed businesses, the BDC helps the companies regain sound financial footing.   Similar to closed-end investment funds, many BDCs are public companies whose shares trade on major stock exchanges, such as the American Stock Exchange (AMEX), Nasdaq, and others. As investments, they are high-risk but offer higher rewards.

I try to find solid companies that provide financing that is being sold at a discount and also show dividends of 8% or more.

BDCs are much like private equity funds for small businesses.   While private equity funds tend to be restricted to high-net-worth and institutional investors, Block Development Companies are publicly traded on the stock market and available to anyone with a brokerage account.  What is even greater, is they are transparent and easy to research.  Like all stocks, these may or may not go up in price.   However BDCs do normally pay dividends, and those are the ones I try to buy.

Business Development Companies make debt and equity investments primarily to small or mid-size companies.  They are very much like REITs in how they perform.   BDCs were created by congress to encourage investing in the real economy.  They benefit from having preferential tax treatment as they pay no income tax as long as they pay out at least 90% of their net income to investors.   

BDCs and Reits are two of the best dividend stocks regarding yields.  By not having to pay income tax, they can pass on higher returns to the shareholders.

I encourage you to read more about Business Development Companies and consider purchasing some of them to round out your complete portfolio.

I read a good article this past week recommending what they considered 5 of the best BDCs.  All were good, and I purchased 4 of the 5.  (All are doing well by the way.)  You might look at these.  Be aware here in March we are having a roller coaster ride on the stock market, so buy on down days if you decide to buy.   Every dollar you buy at a discount is more money that should return to you as the stock comes back to the normal range.   I try to never buy when a stock is near its 52-week high.

Business Development Companies to consider.

MAIN – Main Street Capital.   It pays a monthly dividend and is considered the blue-chip BDC.   They provide financing to middle-market companies, typically with $10 million to $150 million in yearly revenue.

ARCC – Ares Capital.   They are the world's largest BDC with over $10 billion of capitalization.   ARCC is well diversified with money in Software, Healthcare, and various Professional services with no more than 7% in any one sector.

ORCC – Owl Rock Capital -  A newcomer in DBC stocks which just started trading in 2019.  They have paid a steady stream of income dividends with current rate above 9%.  They are well diversified in thier portfolio with mainly software, insurance, and food and beverage companies.

HTGC – Hercules Capital.   Hercules acts more like a venture capital company.   HTGC is the largest BDC focused on venture capital financing.  Currently showing a 9.7% rate of return.

TPVG – Triple-Point Venture Growth BDC Corp.  They are the smallest of the BDCs mentioned here today.  They have a market cap of $441 million and are a bit more speculative than the others mentioned.  Triple Point’s portfolio is mainly invested in debt instruments, mainly floating-rate instruments.

All of these are just examples of Business Development Companies.  Don’t buy them based on reading about them here, but study and be sure they make good sense for your investment portfolio.  

I think everyone can gain by having a fully diversified portfolio, and that means a combination of Full Market Stock Indexes, Bonds, CDs, Dividend Growth Stocks, Preferred Stocks, Reits, and Business Development Companies.    We have articles on all of these in the link below on Investment Articles.

Have a great day!
 
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There are a lot of ideas about what minimalism can do for us.   When you cut out the excess “stuff” you have more free time. You have less to keep up with, and your expenses are lowered.   Today I want to discuss a word that all of us should really learn and strive to make part of our day-to-day mindset.

If we can get this attribute into our daily action steps, believe me, it will allow us to have a more consistent life.    I want to talk about the word:  Resilience.

The dictionary defines Resilience as:

1.  the power or ability of a material to return to its original form, position, etc., after being bent, compressed, or stretched; elasticity.
2.  the ability of a person to adjust to or recover readily from illness, adversity, major life changes, etc.; buoyancy.
3.  the ability of a system or organization to respond to or recover readily from a crisis or disruptive process.

As a Christian, almost daily you will be stretched to your limit and face adversity.   Can you quickly recover from hard times?   We can when we have faith in God.    When we ask God for faith, he has promised to give us our desires.

Who in the bible was the ultimate example of resilience besides our Savior Jesus Christ?    I think after Christ, the first person that comes to my mind is the apostle Paul.

2Co 6:4  But in all things approving ourselves as the ministers of God, in much patience, in afflictions, in necessities, in distresses, 
2Co 6:5  In stripes, in imprisonments, in tumults, in labours, in watchings, in fastings; 
2Co 6:6  By pureness, by knowledge, by longsuffering, by kindness, by the Holy Ghost, by love unfeigned, 
2Co 6:7  By the word of truth, by the power of God, by the armour of righteousness on the right hand and on the left, 

Paul was a man who never gave up, no matter the circumstances.   He knew that God was the one who helped and guided him every day of his life.   Through Christ, Paul could do all things.

Heb 11:6  But without faith it is impossible to please him: for he that cometh to God must believe that he is, and that he is a rewarder of them that diligently seek him. 

We are commanded in Romans to not be conformed to this world, but have a mindset geared towards doing the perfect will of God in our lives.

Rom 12:2  And be not conformed to this world: but be ye transformed by the renewing of your mind, that ye may prove what is that good, and acceptable, and perfect, will of God. 
Rom 12:3  For I say, through the grace given unto me, to every man that is among you, not to think of himself more highly than he ought to think; but to think soberly, according as God hath dealt to every man the measure of faith. 

To have resilience, you will certainly need to have a lot of determination.   All of these things work hand in hand to make you a person who is very productive in your life.   By being determined, you keep on when others quit.  When you have determination, little setbacks are just those.  Failure is never failure until you quit getting back up and fighting another round.   Paul told the church at Phillipi that he had no confidence in his flesh, but he looked to God with faith to help him have the resilience to keep on keeping on.

Php 3:1  Finally, my brethren, rejoice in the Lord. To write the same things to you, to me indeed is not grievous, but for you it is safe. 
Php 3:2  Beware of dogs, beware of evil workers, beware of the concision. 
Php 3:3  For we are the circumcision, which worship God in the spirit, and rejoice in Christ Jesus, and have no confidence in the flesh. 
Php 3:4  Though I might also have confidence in the flesh. If any other man thinketh that he hath whereof he might trust in the flesh, I more: 
Php 3:5  Circumcised the eighth day, of the stock of Israel, of the tribe of Benjamin, an Hebrew of the Hebrews; as touching the law, a Pharisee; 
Php 3:6  Concerning zeal, persecuting the church; touching the righteousness which is in the law, blameless. 
Php 3:7  But what things were gain to me, those I counted loss for Christ. 
Php 3:8  Yea doubtless, and I count all things but loss for the excellency of the knowledge of Christ Jesus my Lord: for whom I have suffered the loss of all things, and do count them but dung, that I may win Christ, 
Php 3:9  And be found in him, not having mine own righteousness, which is of the law, but that which is through the faith of Christ, the righteousness which is of God by faith: 
Php 3:10  That I may know him, and the power of his resurrection, and the fellowship of his sufferings, being made conformable unto his death; 
 
And what goes with determination?   Absolutely it is persistence.   Day after day you fight again and again.   Failures come and failures go, but you don’t give up.   Having mule-like determination will allow you to overcome almost any resistance you come up against.   Thomas Edison tried over 14,000 tests in trying to create the light bulb.   When his assistant said after a few months, let’s give this up.   It can’t be done.   Edison was reported to have said, “No.  We just now know over 10,000 ways that won’t work.”   
 
Robert Cavett, a great motivater, once said: “You don’t drown by falling into water, you only drown if you stay there.   It’s all right to get down, but don’t get down on yourself.”     All of us stumble, but resilience and determination make us keep on going when it is not going our way.
 
In sales, I have heard most salesmen give up after being told “no” 3 times.    But successful salesmen know that the ‘no’ is not personal, and you just have to keep on trying.   One of the greatest salesmen I ever met told me that he has found that it takes 30 attempts to sell, so he keeps up a record of all the ‘nos’.  When he gets to 25, he knows a ‘yes’ is coming. You build greater determination which makes you even more resilient.   

​While we are not selling our faith to the lost, we are presenting the Lord in sharing the gospel and we need to know that we may have to witness a number of times before we make headway.    If the roles were reversed, would you want that other person to give up on you if you said no a few times?
 
Determination will help you to develop the resilience you need to be consistent and successful in your life.  It all begins at the start of each day.   We must let God through the Holy Spirit guide us, and that begins by reading our bible and being in tune with God’s leadership.
 
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DISCLAIMER -  I am not a Financial Advisor and do not work for any Brokerage Firm.   The opinions given are of my own and are not to be used as professional advice.  These are my findings and can hopefully help you to make informed decisions on investing.   Consult a Broker or Lawyer before making any investment.

Few people realize the importance of Passive Income.    In life, we must either work for a paycheck, or we can wisely invest and let those investments pay us.   Last year I had virtually no substantial income from dividends.    By purchasing a lot of Growth Dividend Stocks, CEFs (Closed-End Funds) at huge discounts to Net Asset Value, and some Preferred Stocks, we have now over $70 per month coming in.   We are planning for over $100 per month in the next six months, with a goal to get above $500 within 2 years.

We did an article on DGI Dividend Growth Stocks (Click here).

This Article goes into CEF funds in detail.

And this one explains Preferred Stocks.
 
Passive income makes you money while you sleep.  We were taught in school to work hard, to make good grades, go to college, and then get a good high-paying job.   Put your money into the 401-K or IRA and then retire at 65 and be happy.    How does working your life away for 45 to 60 years sound like a good plan? If we can leverage some passive income to our advantage in our 20’s and 30’s, there is no reason we should have to work most of our lives.  If you are much older, it still works to your advantage, so keep on reading.  You are never too old to develop passive income.

Passive income is income that you don’t work for on a daily basis.   It can come from dozens of sources.  Some may have required earlier work, but it is mainly money today for efforts put in the past.  Probably the most common passive income is interest from your savings account.    Here is a short list of some Passive Income sources.

Common Passive Income Streams

1. Interest from Savings accounts or Treasury bonds
2. Dividend interest from Stocks that pay dividends]
3. Income from Corporate bonds
4. Rental income from houses or apartments you own and rent out
5. Income from collections such as art or precious metals
6. Royalty payments from oil and gas royalties
7. Owning a business
8. Residual payments from royalties on content-producing streams.  (Kindle books, regular books, YouTube channel productions, etc.
9. On-Line courses you sell over and over.
10. Farm or crop payments for land leased
11. Any type of investment that returns dividends without you having to work for it.

 
We did articles on Dividend Paying Stocks and how to pick some good ones.   One was on the Dividend Aristocrats and the other was on the Dividend Kings.    Check those out for good leads on stocks that will not only pay dividends but grow in value also.

https://lifecanbesimple.net/blog/what-are-dividend-aristocrats

https://lifecanbesimple.net/blog/what-are-dividend-kings
 
Why Passive Income?  - SIMPLE AND REQUIRING NO INVOLVEMENT
 
You wake up and money flows into your bank accounts and all you do is watch it grow.  My friend Joshua King started writing content at the age of 36 and now has over 140 kindle books bringing in a monthly income of over $650.  With the compounding effect that this has, he will reach over $1,000 of book-producing revenue each month within five years.     So being a writer can clearly be a method of obtaining passive income.
 
Joshua King is the one who got me started on the quest for Passive Income.  This next book link is one of the top 5 most important Investment Books I have ever read.    Joshua wrote a 319-chapter book on just Passive Income named:  The Biggest Book on Passive Income Ever.    You can buy it at Amazon using this link:
 
Biggest Book on Passive Income
 
To be able to write on topics such as investing, we must study and read every day.  There is no substitute for filling our minds with new information that is pertinent to business and investing today.   Much bad information is there too, so learn whom you can listen to and whom you can not.  
 
Who should pursue Passive Income?   I think we all should.  Producing more income, allows us to give and help others in need.   And having a steady source of income is very comforting in tough times.
 
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Master Successful Personal Habits by Zig Ziglar

DISCLAIMER -  I am not a Financial Advisor and do not work for any Brokerage Firm. The opinions given are my own and are not to be used as professional advice.  These are my findings and can help you to make informed decisions on investing.  Consult a Broker or Lawyer before making any investment. 
 
Master Successful Personal Habits by Zig Ziglar is a great book about thinking right and getting good habits.   Few people in the world are better known than Zig Ziglar.   He has authored dozens of books but is known more as a great motivational speaker, particularly in the arena of sales.   I am currently reading his book “See You at the Top”, and it is super also.  I picked up both books at Hoopla-Digital.  If available from your library, Hoopla Digital is an inexpensive way to read books for free.   We did an article a few months ago on saving money reading books.  Click here to read saving money reading books.

WHAT I LEARNED FROM: Master Successful Personal Habits

First and most importantly, this book is way more than a book about habits.  It is about living a successful and prosperous life.   There are dozens of great stories, and I can only include a few in a 5-page review.   So read the book and be blessed.

Hope is the Foundation of Quality Habit Changes.

1. You have a choice.  You can make it better or worse.
2. It is not what happens in the world that makes a difference in your life.
3. It is not what your parents did or are doing.  You must do something to change your life for the better.
4. It’s not what happens to you, but how you handle what happens.  One mistake does not ruin us.  Just learn from each mistake and don’t repeat failures.

Zig Ziglar says many will never change due to the “PLOM” disease.   He says this means “Poor Little Ole Me”.    I would change, but poor little ole me can’t.    You can.    Don’t fall for this failure trap.

There is no limit to what we can do when we are determined.  There is great power in Hope.  Hope is the foundation.  Without hope, we are lost.   There is no power if hope is in the future or the past.  POWER OF HOPE is NOW.  In the present, we must make our changes.

Money is important, but it has limitations.   Zig says he likes a lot of things money can buy, but money can only buy things.  Many more important things are not able to be purchased with money.

Money can buy you a nice house, but not a home.   Money will buy you a bed, but not a good night’s sleep.   Money can buy you a companion, but not a true friend.  Money can buy a good time, but it won’t buy peace of mind.

The book is full of examples of people who refused PLOM disease. (poor little ole me malady).   Many overcame great circumstances.

Vince Roberts only finished the 5th grade.  He got a job driving a taxi, and he purchased a 15 lb. Webster's dictionary.  Each day he would learn the meaning of a few more words.  As he waited for someone to take his taxi, he got smarter and smarter.   By reading his IQ went up.  He learned how to invest in the stock market.  

Over time, he made enough money to buy out the ’19 Car Taxi Service” in his town.  He never quit investing, and today he is a very wealthy man.  He travels all over Canada telling others how to be successful.   Is he an isolated case?  Not at all.   There are thousands of Vince Roberts who have migrated from foreign countries and become wealthy.   They see the opportunity all around us in America.

To get ahead, it takes 6 things.

1.  You must have a healthy self-image.   Believe in yourself.
2.  You must see the value and worth in other people.
3.  You must develop a Strong Goal Orientation.
4.  You must have the right mental attitude each day.
5.  Be willing to work hard.
6.  You must have a burning desire to excel.

Zig Ziglar gives a set of affirmations that we should all seek to emulate.  He suggests reading this every day, and making it a part of your daily routine.  I have done this and it has made me more steady and consistent.   It has been easier to stick to more core values by living right and trying to glorify the Lord with my life.   Try it and I think you will be a better person reminding yourself of how you should and will be.

Zig Ziglar encourages us to speak positive words to ourselves.  He says we should start each day by stating the following:

I am a compassionate, respectful, encourager who is a considerate, generous, gentle, patient, caring, sensitive,  personable, attentive, fun-loving person.  I am a supporting, giving and forgiving, clean, kind, unselfish, affectionate, loving, family-oriented human being, and I am a sincere and open-minded, good listener, and good-finder who is trustworthy.  These are the qualities which enable me to build good relationships with my associates, neighbors,  mate, and family.

I'm a person of integrity with the faith and wisdom to know what I should do and the courage and convictions to follow through.

I have a vision to manage myself and to lead others.  I'm authoritative, confident, and humbly grateful for the opportunity life offers me.  I am fair, flexible, resourceful,  creative, knowledgeable, decisive, and an extra-miler with a service attitude who communicates well with others. I am a consistent, pragmatic teacher with character and a finely-tuned sense of humor.

​I am an honorable person and am balanced in my personal, family, and business life, and have a passion for being, doing, and learning more today so I can be and do more tomorrow.

These are the qualities of the winner I was born to be.  Tonight I'm going to sleep wonderfully well.  I will dream powerful and positive dreams.  Tomorrow I will awaken refreshed, and it's going to be an absolutely magnificent day.

Power of Words

Zig Ziglar says that we have no idea how much power words have over people.   So many think they have accomplished all their life goals by themselves.  No one has done it all by themselves.

Zig says that if you see a turtle on top of a post, you know he didn’t get there by himself.   The same can be said of each of us.   No matter how high or how low you are on the ladder of life, others have helped you along the way.
​
He says his two favorite college teams are Penn State and Notre Dame, but probably not because they are so successful.  It is because they don’t allow the player’s name to be on the jerseys. You have a number and you are just a ”part of the team”.   You watch and almost yearly these 2 teams are in the top 20 NCAA teams, if not in the top 10.

If you don’t think words are important, think about these examples.

Patrick Henry said “Give me Liberty or give me death,” and it caused a nation to unite and fight for its independence.   Churchhill said “There will always be an England”, and the country was lifted by its bootstraps.  FDR said “The only thing we have to fear is fear itself”, and the Depression Era got a glimpse of hope.  Martin Luther King said “I have a dream,” and it made many people get great dreams they had never before dreamed for a better country.

In his book, Zig Ziglar says that 58% of people never read a meaningful book after graduating college.   But the ones who made the “Who’s Who” typically read at least 20 books per year.   In 5 years, they have read 100 books and are totally up on current trends and business leadership.

He points out that if you will read just 30 minutes per day when you are young and stay with it all through life, you will read over 1,000 books in your lifetime.  That is the equivalent of 5 Four Year Degrees from college.  You won’t get the degrees, but you will get the knowledge.

He said he always carries a paperback book with him everywhere he goes so in down times or times waiting, he can use the time constructively.   With cell phones, Kindle, Hoopla Digital, ePub, and online Library books, there is no limit to what we can carry in our cell phones.

80% of character is developed by the time we are 5 years old.   90% is developed by the time we are 7 years old.   So is it important to speak positive uplifting things to our children?   You can not know how much difference it will make.   Many in prisons today were told by their parents “You keep that up and you will wind up in jail one day.”   Many Olympians were told, “Keep up that hard work and one day you will be in the Olympics.” We move to what is in our minds.  Fill your mind with positive uplifting thoughts.

Someone once asked Helen Keller what would be worse than being blind?  Without hesitation, she said “It would be infinitely worse to have perfect eyesight and no vision than the other way around.’

Consistency is imperative to be successful in life.   Your word should be your bond.  There are dozens of stories in this book about people who started small and grew large in their chosen fields.  

I highly recommend this book.  It is a great book on being motivated to live right and see things with a proper perspective.  Do yourself a favor and read some Zig Ziglar books.  Developing good habits is not easy, but this book will get you on the right track.

 
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New Dividend Aristocrats for 2023

DISCLAIMER -  I am not a Financial Advisor and do not work for any Brokerage Firm. The opinions given are my own and are not to be used as professional advice.  These are my findings and can hopefully help you make informed investing decisions.  Consult a Broker or Lawyer before making any investment. 

Some of the better investment stocks that consistently pay dividends are in two lists called Dividend Aristocrats and Dividend Kings.  I did articles on both of these several months ago.

Dividend Aristocrats
Dividend Kings

The two lists sometimes overlap, but the rules to be in each are different.     Read the articles above to get all the details.

In summary, here are the rules for each list:

Traits of a Dividend Aristocrat

1. At least 25 years of consecutive dividend payments with a higher dividend per share each year.

2. The company maintains a minimum market capitalization of 3 Billion dollars. 

3. The stock averages at least 5 million dollars in daily trading.

4. The stock is part of the S&P 500 stock market index and is publicly traded.

Dividend Kings have just one trait, but it is a good one.
 
Traits of a Dividend Kings

1.  They have increased their dividend per share payout for 50 or more years.

 
This year in 2023, we have 3 new members of the Dividend Aristocrats.   While just making the list does not guarantee these will do great in the future, but they definitely warrant a look for your dividend portfolio.   Since these companies have raised their payouts on dividends for at least 25 consecutive years.

Let’s jump into the 3 new members.  J.M. Smuckers (SJM), Nordson (NDSN) and C.H. Robinson Worldwide (CHRW) are all entering the foray of companies who pay consistent dividends.   Let’s talk a bit about each company:
​
J. M. Smuckers

Market Value:  $11.7 billion
Dividend Yield:  2.5%
Analysts’ consensus:  Hold
​
CHRW – C.H. Robinson Worldwide provides Freight transportation and logistics services to industries around the world.  It also delivers reliable increases to its quarterly dividends.
It’s most recent dividend paid in 4th quarter of 2022 was 51 cents per share which was a 10.9% increase over the prior quarter.

CHRW has outperformed the past one and 3 year periods, but lagged on 5 year.   In 20 year period, it has annualized total returns beating the S&P 500 by more than 2 points.
The consensus on the street that this is just a ‘hold’ stock currently.

These may or may not be good choices to add to your portfolio this year.   However, remember that dividend-growth stocks tend to hold their value better in periods of rising rates which we are currently experiencing in the United States.   While just Aristocrats dividend returns may not seem great, the combination of it and their growth in stock value can provide some great total returns.   I personally did not add any of these 3, but continue to put money in my selected Dividend Aristocrats and Dividend Kings weekly.

Seeking Alpha pointed out some of the best yields this year on Aristocrats including VFC, TROW, ESS, FRT, AMCR, ABBV, O, IBM, MMM, WBA averaging 4.38%.    I own most of these in my Schwab portfolio.

They also predicted the highest broker-estimated price upsides.  They were WMT, KO, CVX, SYY, GD, CB, APD, ROP, ADM, and NEE averaging a projected 16.41%.   I don’t own them all but do have most of them in my Schwab portfolio.

I truly believe that some of your most consistent year in and year out returns come from carefully chosen Dividend-Growth stocks.   They and some carefully chose Real Estate Trust ETFs make for a great combo.

Info on Real Estate trusts: 
More information on Dividend-Growth Stocks
  
 
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Positive Affirmations by Zig Ziglar

I have recently been reading a book by Zig Ziglar, and he is one of the most dynamic people I have encountered when it comes to having a good outlook on life and making the very best of each day.

In his book, he encourages us to think about these things daily and to repeat them out loud.   Doing so, it has had a profound effect on me.   Today I want to share those things he wants every person to have.
  
In Zig Ziglar's book which I will review later, he encourages us to speak positive words to ourselves.  He says we should start each day by stating the following.

I am a compassionate, respectful, encourager who is a considerate, generous, gentle, patient, caring, sensitive,  personable, attentive, fun-loving person.  I am a supporting, giving and forgiving, clean, kind, unselfish, affectionate, loving, family-oriented human being, and I am a sincere and open-minded, good listener, and good-finder who is trustworthy.  These are the qualities which enable me to build good relationships with my associates, neighbors,  mate, and family.

I'm a person of integrity with the faith and wisdom to know what I should do and the courage and convictions to follow through.

I have a vision to manage myself and to lead others.  I'm authoritative, confident, and humbly grateful for the opportunity life offers me.  I am fair, flexible, resourceful,  creative, knowledgeable, decisive, and an extra-miler with a service attitude who communicates well with others. I am a consistent, pragmatic teacher with character and finely-tuned sense of humor.

​I am an honorable person and am balanced in my personal, family, and business life, and have a passion for being, doing and learning more today so I can be and do more tomorrow.

These are the qualities of the winner I was born to be.  Tonight I'm going to sleep wonderfully well.  I will dream powerful and positive dreams.  Tomorrow I will awaken refreshed, and it's going to be an absolutely magnificent day.
 
 
Checkout the great article by Hayley Grace on why she quit social media and why you should to.
I Quit Social Media
 
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Understanding Preferred Stocks

DISCLAIMER -  I am not a Financial Advisor and do not work for any Brokerage Firm. The opinions given are my own and are not to be used as professional advice.  These are my findings and can hopefully help you make informed investing decisions.  Consult a Broker or Lawyer before making any investment. 

One of the better investment vehicles available to investors is the equity class called Preferred Shares or Preferred Stock.  Not much is said about them, so I am going to try and shed some light on the topic and teach a bit about the basics involved in Preferred Stock.
 
Many Preferred Stock shares pay excellent dividends, and some pay above 10%.   Many can be purchased well below their par value which is normally $25 per share.

Preferred Stocks (or Preferred Shares) are simply a class of equity stocks.  They hold a senior position over common shares.   One of the big differences (which is of little significance to small investors) is that Preferred Shares do not hold voting rights.

In concept, they are much like a bond, but they are not a debt.   In case of bankruptcy, bonds being debt would be paid first, then Preferred Shares, and if any money was left, the rest would be paid to the common stock shareholders.
 
Another investment method not well known also are Closed-End Funds.   We did an article on those at the link below:
https://lifecanbesimple.net/blog/what-are-closed-end-funds
 
Preferred Stocks typically always sell at $25 which is par value.   If you pay over $25 a share, you are paying a premium.  Under $25 means you are purchasing at a discount.    The dividends are paid on the value of $25 even if you purchased it at a lower rate, meaning you can get substantially higher returns than the stated rate if you buy at a good discount.

There are several terms, characteristics, or properties that you need to understand when buying Preferred Stocks.  You need to try and buy those that are Cumulative, Redeemable, Perpetual, and Fixed.

Cumulative means that all dividends must be paid.  If a company is low on funds and suspends the dividend, then later reinstates it, that means the prior dividends must be paid.  A Non-Cumulative share will not be paid on missed dividend payments.

Call Date is the date that the company can buy back the shares.   They must be bought back at par value. (Normally $25 per share.)

If a share is past its call date, then it becomes what is called Perpetual.   Once past the call date, it could be called at any time.   But perpetual means it will continue to pay dividends on an ongoing basis each quarter until called.

Perpetual shares exist forever until called.

Non-Perpetual shares mean that they retire at a specific date which can be after the call date.

Redeemable preferred shares can be called.   If redeemable, they will pay the par value per share when called. (Normally $25 a share.)

Fixed Dividend payments mean that no matter what price you pay, you will receive the same fixed dividend payment.  So an 8% payment based on $25 would net much higher if you purchased the stock at under $20 per share.   The lower the price per share, the higher your net yield.

Do not purchase the Floating Rate preferred as the dividend rate can vary.
 
My good friend Joshua King has written some good articles on Preferred Stocks.  

You can find that article here:
https://militaryfamilyinvesting.com/2021/03/17/preferred-shares-101-getting-started-with-preferred-shares/

In his article, he tells of a website that can explain what code to use to pull up preferred shares on various websites.  It has a lot of information about income investing.

https://quantumonline.com/
 
Preferred shares pay normally by the quarter, and they are consistent much like interest received on bonds.  They are steady income producers and can be very useful in setting up a good portfolio. 
 
I purchased a preferred stock today that meets all of the requirements we have mentioned.  It is KREF/PA which is the preferred stock shares of KKR Real Estate Finance Trust.

Coupon Type:  Fixed
Rate:   6.5%     nets 8.40% at the purchase price of $19.34
Cumulative:  Yes
Perpetual:  Yes

​Here are the characteristics from the Fidelity Website:

From the graph below, you can see the price per share has varied and dropped, but the payments have been consistent on these shares.
​

If the shares are eventually called, each share will pay $25 meaning a gain of almost $6 a share.    Since this stock is perpetual, it may never be called, but the 8.40% net is still a very good dividend.
 
One of the best websites to find information on Preferred Stocks is the Preferred Stock Channel.

https://www.preferredstockchannel.com/

When you signup for their weekly emails, they will send you good stocks to review that are paying some of the highest returns.   Be sure to pay attention to the rules we listed as all types of Preferred stocks are recommended.

Another site that has information on Preferred Shares is Yahoo Finance.  

You can find information from Fidelity Investments at:
​
https://digital.fidelity.com/prgw/digital/research/

A better screener on Preferred stocks is at Schwab Investments:
Note:  you must be a Schwab customer to use this service.

https://client.schwab.com/app/research/#/tools/stocks/preferredscreener

So in summary, Preferred Shares/Stocks can be great income producers.  

Review for the following characteristics of the stock:

1. Call Date
2. Fixed Rate (Not floating rate)
3. Cumulative (meaning suspended dividends must be paid when dividends resume)
4. Perpetual – continues paying dividends after the call date.
5. Look for the good financial condition of a company. (P/E ratio, current company ratings, etc.)
6. Selling price below par value (Normally $25 per share)

 
If you prefer to buy ETFs and not study the individual stocks, several good ETFs deal only in Preferred shares.   Here are 3 that I have purchased that pay consistently good dividends.   (6 to 10% yearly)

• PFF – I-Shares Preferred Income Securities ETF
• PREF – Principle Preferred Securities ETF
• PFFA – Virtus InfraCap US Preferred Stock ETF

Few people understand Preferred Stocks; they are a great method to increase your earnings.   You can take advantage of the many Preferred Stock offerings with just a little effort.    
 
Review the Preferred Stock Channel for many offerings:
https://www.preferredstockchannel.com/
 
  
 
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The Consistency Pill by Simon Chan

DISCLAIMER -  I am not a Financial Advisor and do not work for any Brokerage Firm. The opinions given are my own and are not to be used as professional advice.  These are my findings and can help you to make informed decisions on investing.  Consult a Broker or Lawyer before making any investment. 
 
The Consistency Pill by Simon Chan is a book about how to get things done.  It teaches you to be a great salesman, and even greater how to live a highly productive life.    Perhaps of all 100 books I have read on finances and habits this year, it is one of the best.  The reason I say this is that it is not complicated.     The Number 1 skill needed to be successful is consistency.

Perhaps no book I have ever read about habits and success has helped me better identify how to succeed.   I think you can sum it up with a few words: Consistency, Determination, Resilience, and never giving up.   When I picked up the book, I thought the name was odd.   But once I read chapter one, I knew that I had found a gem.
 
WHAT I LEARNED FROM THE CONSISTENCY PILL

Simon Chan is a world-leading motivational speaker and knows how to empower your sales staff.  He takes a person who is not confident and turns them into a great salesperson.   One of the first things I learned from Mr. Chan is that you must try and then try again to make a sale.  He claims that when you start, it may take 100 presentations to make one sale.

Most people will give up after four or five unsuccessful attempts.  But you go back again and again until you impress people with your consistency.   Simon Chan says that if you approach the same person or company five times, you will normally either make a sale or they will give a lead to someone who needs your product.   People who see your consistency will be impressed when you don’t stop and keep on keeping on.

To be successful in sales (and life), you need more than just goals.  You need a system to get it to work.   

He says we need a SMART system with the goals that are:

S – Specific
M – Measurable
A – Achievable
R – Realistic
T – Timely
 
You set your goals and then you apply yourself to become consistent.  You put yourself to work with attainable and measurable goals.

Simon says he has a friend who owns 5 different million-dollar businesses. This fellow starts reading and never finishes a book.   I thought, wow… no focus.  But what he does is find a good idea and apply it to action in the next 30 days.     Do you move on new ideas, or do you like most just put them off?

Take action and create a daily NEW Routine.

You apply the CONSISTENCY SYSTEM.

People are impressed when you are steady and consistent.  

And they buy into the Big 3 “C” Action steps.

CHANGE
COMMITMENT
CONSISTENT

According to Simon Chan, only winners never quit.   Winners are champions that stay consistent long-term.     Everyone wants to join a winner.

He quotes Ralph Waldo Emerson.  “What you do speaks so loudly that they cannot hear what you say.”

Be consistent and a person of action.

Today we live in a special time.   With the availability of the Internet, we can virtually be a success at anything.   Just Google it and learn what you want to do.    Learn it and gain the skills to do it.

Part of the Consistency System is tied to having an accountability partner.  You can be accountable once per day, once per week, or even just once per month.   But you must hold yourself accountable to someone for your actions.  (or your inaction.)

Jessie Lee Ward said this about Simon Chan.  If there’s anyone on earth best equipped to teach consistency it is Simon.  Being friends with him for the better part of a decade now I can honestly say there is no better example of how to systematically make people feel seen, heard, loved, and appreciated consistently.   If consistency is your weakness, read this book.
​
Consistency is the mother of all skills because once you learn how to be consistent, you can get good at everything else. 

Anyone can be consistent.  It just takes some work and effort.  To help others, Simon Chan created the Purpose Driven Networkers.  Each day they spend a few minutes encouraging one another to keep after it and try harder.   Purpose Driven Networkers help you to have goals, and a system to put them into action.

People see and buy into your changes when you get consistent.  Your consistency in detail impresses clients, friends, and co-workers. The key to winning is not convincing people but outlasting them.

Determination makes the difference.   You just don’t let “No” stop you.  Social media today makes it very easy to find prospects.

Serving and living for God is very important to Simon Chan.   When you do things right, blessings come back to you over and over.   No way to stop the principle of sowing and reaping.

Having a good image of yourself is crucial.   Our minds lead us to accomplish the things we set out to do.   Think positive thoughts, and good things come to you.   You can’t see yourself as a consistent person unless you are one. You let your past go and remind yourself each day that:  “Yesterday is history, today is a mystery, and tomorrow is my legacy.”  What we focus on is what stays in our minds.   Think good things and do things consistently.    When you do, you will have great success.

As mentioned early, having determination, resilience, and consistency is key to success. 
​
I highly recommend this book.  It is a great easy-to-follow plan to get us on a path that is rewarding and leads to a life of success and happiness.
 
  
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Minimalism – Having Hope in Life

Do you have a lively hope in life?   We face problems, difficulties, and trials every day.   One of the things I love about minimalism is that when applied to possessions, it does not take you long to realize that having a lot of things brings a very short span of happiness.  After that, you have to deal with all the ‘STUFF’.  

It first means having to have room to store it all.  Some things require ongoing costs to maintain, insure, and just take up your time dealing with them.   

The more you have, the less freedom you have.   Think about that.  
The more you have, the less freedom you have.   

Unfortunately, some people don’t think there is anything they can do about their situation.
Zig Ziglar said that many people suffer from what he calls PLOM disease.  PLOM is an acronym for Poor Little Ole Me.   In other words, rather than deal with issues, they just throw up their hands and say there is nothing I can do… Poor Little Ole Me.     We should not view the issues of life like that.


The Bible is full of verses regarding TRUE HOPE.   130 mentions are made of the word hope.

Rom_8:24  For we are saved by hope: but hope that is seen is not hope: for what a man seeth, why doth he yet hope for?
Rom_8:25  But if we hope for that we see not, then do we with patience wait for it.
 
Today I want us to think about having hope.    As a Christian, the one thing we should have is real hope.   I recently read the book “Knowing Yourself, Knowing Your Money” by Rachel Cruz who is the daughter of well know author Dave Ramsey.  She had a whole chapter dealing with hope.

Did you know that over 50 percent of Americans’ biggest hope to obtain financial stability is thinking they will win the lottery?    That is not hope, that is being blinded by Satan.   You are more likely to be struck by lightning three times and survive than to win the lottery.    Dave Ramsey said that the lottery was designed by the government to take advantage of the poor and ignorant.   

Anyone that sees life clearly will never waste their money on lottery tickets.    But I see people all the time dishing out good money hoping for the big win.   God will always provide for us, and we do not need to ever seek quick, fast money.  What is sad is that the few who do win the lottery wind up with a ruined life.   Talk to anyone who ever won a lot of money and see how well that worked out.  

In Rachel Cruz’s book, she told about a farmer who had this big barrel of water.  Almost daily, he had to fish out a drowned rat.  Some fellow decided to do a test on the rats.  The numbers I am giving you are what I remember and may not be 100% accurate.  ( I read that book over 5 months ago.)

If a rat fell into a barrel of water without any way out, the average rat drowned to death in 73 minutes.   However, if you helped the rat out, each time you saved him, he would then last over 24 hours more.   The average rat saved 3 times would last over 96 hours swimming before he gave up.   The point of that story is that a little hope makes a huge difference.   Think of how much difference.   Over 60 times the determination rate in a rat when given a little hope. 

This is probably a horrible example comparing it to people, but think about it.   A rat was smart enough to understand that if he was saved once, he built up more determination to swim and live longer.  Put that in a spiritual context for mankind.    If we are saved, should we not have a much greater hope than a rat in a barrel?   When we know Christ as Savior, we should NEVER GIVE UP.

I once read that man can live up to 33 days without food, up to 7 days without water, but can barely survive a day without hope.    As a true born-again Christian, we have hope that is real.   A real hope that is guaranteed by our Heavenly Father.
 
Verses on Hope abound, especially in Psalms

Psa_33:22  Let thy mercy, O LORD, be upon us, according as we hope in thee.
 
Psa_119:114  Thou art my hiding place and my shield: I hope in thy word.
 
Psa_146:5  Happy is he that hath the God of Jacob for his help, whose hope is in the LORD his God:
 
1Jn_3:3  And every man that hath this hope in him purifieth himself, even as he is pure.
 
1Th_2:19  For what is our hope, or joy, or crown of rejoicing? Are not even ye in the presence of our Lord Jesus Christ at his coming?
 
1Th_4:13  But I would not have you to be ignorant, brethren, concerning them which are asleep, that ye sorrow not, even as others which have no hope.
 
Heb_6:18  That by two immutable things, in which it was impossible for God to lie, we might have a strong consolation, who have fled for refuge to lay hold upon the hope set before us:
Heb_6:19  Which hope we have as an anchor of the soul, both sure and stedfast, and which entereth into that within the veil;
 
1Pe_1:3  Blessed be the God and Father of our Lord Jesus Christ, which according to his abundant mercy hath begotten us again unto a lively hope by the resurrection of Jesus Christ from the dead,
 
I hope this article on faith and hope is an inspiration to you to overcome any problem you face and realize that we are not limited when we look to the true source of hope, our Lord and Savior Jesus Christ.
 
In the weekly emails I receive from Joshua Becker, I found a reference to the next article.  Check out the PUSH and PULL article this week by Brittany on NoSideBar site.
https://lesslessmore.com/2023/01/11/the-push-and-the-pull/
 
 
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Myths in Stock Market Advice – Part 3

DISCLAIMER -  I am not a Financial Advisor and do not work for any Brokerage Firm. The opinions given are my own and are not to be used as professional advice.  These are my findings and can hopefully help you make informed investing decisions.  Consult a Broker or Lawyer before making any investment. 


Those of you who have been following my blog and articles for several months, know my reason for doing this is to share some of my findings in investing in the stock market.   I want to help everyone to make good solid decisions when it comes to investing.  My first 40 articles have been tied to things that have worked for me or promising new things I am trying this year.   The reality of the situation is that I can only share what I know to be the truth.  
 
I wrote my first 2 articles on myths last month.   I keep finding more and more lies being put forth as true, and I want to continue on the topic again and explain more myths.  Remember to read those 3 books I mentioned in my first article.   The link is below to both articles on Myths.

To read article one on myths, click below:   

https://lifecanbesimple.net/blog/myths-in-stock-market-advice
​
Article 2 is here:

https://lifecanbesimple.net/blog/myths-in-stock-market-advice-part-2
 
 
MYTHS IN STOCK MARKET ADVICE

Myth:  All you need to do is invest in your Roth IRA.  Don’t worry about how it is allocated.    This is a very horrible piece of advice.    You must decide where and how you want to invest in your IRA.   In Ramit Sethi’s book “I Will Teach You to be Rich”, he gives an example of a lady who for 8 years put in $3000 to her Roth IRA.  

However, after 8 years, it was barely worth more than $24,000.   How could that happen?   She never invested the money.   It sat in a money account making a few percentage points each year.    NOTE:  When you put money into any Investment Account (401K, Roth IRA, or Traditional IRA), you must decide where to invest the money.  Ramit Sethi gives some advice on how to invest simply by using Target Date Mutual funds.   Read about it here:

https://lifecanbesimple.net/blog/book-review-i-will-make-you-rich-by-ramit-sethi

Remember, just putting money into the account does not start your investment.   You can use many methods to invest.  If undecided, simple FULL STOCK MARKET INDEXES such as ITOT or VTI are good to start with.

Explanations of some of the main investment vehicles are here:

https://lifecanbesimple.net/blog/investment-categories

I wonder if you have ever been told by your broker or financial advisor that you don’t need to worry much about the stock market movements.   It never will drop 15% in one day.   No one would lie about such an important thing, would they?  I remember the day in October 1987 when the market went down 22.6% in one day.   I know where I was on that Black Monday and everyone at work was in shock.  It started dropping early on October 19, 1987 and fell all day.   The odds of it happening were like a billion to one, but guess what, it happened.

Another great myth is “no matter how far it goes down, it will come right back in time.”  Well that sounds good.  But the past is no guarantee that history will always repeat itself.

In 1949, there began an upswing in the Japanese Nikkei.  (Their money standard compares to our dollar in the United States.)  It started at $40, and constantly went up.   For 20 straight years, it went up. There were a few downs, but it always quickly regained and went from $40 to $40,000 in 1989.   But starting in 1990, it went down by 80% over the next 20 years.   It has NEVER recovered.    Well, that is in Japan, it could not happen in the United States, right?   My question is “Why Not?”   No one controls the market.  It moves in strange ways, and it is not always in a positive fashion.

Since 1900 we have experienced 33 prolonged Bear Markets.   A Bear Market is when you have a decline of 20% or more.   So while history does tend to repeat itself, there are no guarantees.

I want to repeat Warren Buffet’s quote.   He said his number one rule was “Don’t lose money in the stock market.”  And Rule 2 is don’t forget number 1. 

​People believe it is easy to recover a 20 or 30% loss.  Look at the information below.   I covered it in the second article, but it is crucial to realize the importance of not losing money. 

So if you lose ½ of your money, now you must have a 100% return to break even.    How many of you ever made a 100% return in your IRA or 401K?   I have been investing for 30 years, and I think my best year ever was 22%.

So our number one goal should be to never lose money.  Not easy when you are trying for above-average gains, but there are logical ways to proceed cautiously.

So take these findings and learn to make better decisions.  Keep reading and studying on your own.     NEVER stop reading and learning.  If you are a serious investor, be sure to read the 3 books I mentioned in the first article which is below.  
​
https://lifecanbesimple.net/blog/myths-in-stock-market-advice

 
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