“Efficient market” proponents are wrong – you can bank returns of 10%, 12% or more from stocks regularly. But you need to ignore common Wall Street “wisdom” and follow a simple 3-step formula that I’ll outline for you in a moment. Most individual investors don’t make anything close to 10% per year because they practice “buy and hope” investing. They pick up shares and root for them to appreciate in price. With no specific plan outlining how they are going to profit from their stocks, they are doomed.
“The Stock Market Doesn’t Make Any Sense” Which is true. And that’s why you must force it to make sense. There are three — and only three — ways a company’s stock can pay you: 1. A cash dividend, 2. A dividend hike and 3. By repurchasing its own shares. Total up these three “shareholder return” vehicles, and you’ve got the return that you can expect from any given stock.
Source: InvestorPlace
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