Tyrone Jackson often says that wealth is a series of wealthy habits. One of those habits should be collecting dividends. In this episode, Tyrone tells you why. 

When searching for wealth building tools, most people find Mutual Funds, in which financial advisors will pick and trade stocks for you in large sums with other people’s money. Tyrone teaches people to personally pick stocks for themselves because you can make a lot more money this way.  

Tyrone’s approach to the stock market is to buy and trade very low risk stocks. He almost exclusively deals with stocks that are members of the DOW Jones Industrial average and the S&P 500. He finds that his students make thousands of dollars by being a little more conservative with what stocks that choose, and collecting dividends.  What is a dividend? A dividend is your share of a company’s profits after they have paid all their expenses on a quarterly basis. In other words, buy owning a company’s stock, you own a small piece of their business, and thus you receive a small piece of their profit. 

Tyrone explains how this works through three case studies. 

1) Microsoft (MSFT)

Microsoft’s dividend is $1.24 per share annually. However the shareholders receive that as $0.31 every quarter. If you owned 100 shares, you would receive a check for $31 every quarter. If you owned 1,000 shares you would receive $310, if you owned 10,000 shares you would receive $3,100, and so on. 

2) Coca Cola (KO)

Coca Cola’s dividend is $0.30 every quarter. If you owned 100 shares, you would receive a check for $30 every quarter. If you owned 1,000 shares you would receive $300, if you owned 10,000 shares you would receive $3,000, and so on. 

3) AT&T (T)

 AT&T’s dividend is $0.47 every quarter. If you owned 100 shares, you would receive a check for $47 every quarter. If you owned 1,000 shares you would receive $470, if you owned 10,000 shares you would receive $4,700, and so on. That’s $18,800 per year for doing nothing but owning shares of a stock! 

When you choose stocks directly, dividends should be a part of your investing plan because stocks are assets. Your children can be beneficiaries to your wealth accounts and literally inherit your stocks that will pay them dividends. They can inherit your residual income.

Tyrone believes that wealth is a feeling first. When you receive checks in the mail on a quarterly basis, it feels good! That feeling is something you can build on. 

Start feeling good now. Learn more about how at WItradeschool.com.

Randy Hernandez is a successful model and actor who met Tyrone Jackson at an audition for an HBO Television series. He eventually signed up for Tyrone’s class, but began very slowly in the stock market. Randy says he opened his TD Ameritrade account and had money sitting in it for three months before he ever pulled the trigger on a trade. But opening that account was half the battle. 

Randy and Tyrone discuss how there is definitely a fear of failure, a fear of unknowing or not being financially educated that stops many of us from taking the leap. Anyone can make money in the stock market; you just have to have the mindset to see how it works. After making that first trade and seeing the money grow in his account, Randy made six figures in his first year of trading. 

Randy explains that the “millionaire mindset” isn’t really about having a million dollars in your account. It’s a feeling of freedom that you can have yourself, your family, and your lifestyle. You can have the power to eliminate stress and make money on your own terms. But you have to think of trading as part of your income, part of your daily lifestyle. If you treat it like that you will be responsible about it, not get greedy, and do the necessary research. 

One thing that helped Randy get past his fear was Tyrone’s format. He says that Tyrone teaches you in a way that is very safe—he always goes back to the basics no matter what is happening in the market. 

To learn these basics and more, check out what Tyrone Jackson has to offer at WITradeschool.com. 

Click here for more info. 

In order to find financial freedom we must change our money beliefs and get a financial education. Tyrone Jackson continues to demystify the stock market for us and uses Starbucks (SBUX) and Nike (NKE) to explain how we could have been making money for the past five years.

If you refer to this chart for the Starbucks (SBUX) stock, you can see how if you had bought $1,000 worth of Starbucks shares five years ago, it would now be worth $2,900.

Similarly, if you had bought $1,000 of Nike (NKE), it would now be worth $2,400.

These case studies show us how the rich get richer. Imagine if that $1,000 was actually $100,000. That money would now be worth $290,000. The rich invest money directly into the stock market, not through mutual funds.

Once we make these investments and start to make money, we can use our earnings to supplement our lifestyle. That’s the great thing about the stock market; as we are asset building, it gives us cash.

Want more examples? Want to learn to not only invest, but trade stocks in the stock market? Visit WITradeSchool.com.

Five Year Case Studies

Apple Stock (AAPL)

Apple Inc. designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players worldwide. The company also sells related software, services, accessories, networking solutions, and third-party digital content and applications. It offers iPhone, a line of smartphones that comprise a phone, music player, and Internet device; iPad, a line of multi-purpose tablets; Mac, a line of desktop and portable personal computers; and iPod, a line of portable digital music and media players, such as iPod touch, iPod nano, and iPod shuffle. The company also provides iTunes app and the iTunes Store; Mac App Store that allows customers to discover, download, and install Mac applications; iCloud, a cloud service; Apple Pay for making mobile payments; Apple TV, a portfolio of consumer and professional software applications; iOS and OS X operating systems software; iLife, a consumer-oriented digital lifestyle software application suite; iWork, an integrated productivity suite designed to help users create, present, and publish documents, presentations, and spreadsheets; and other application software, including Final Cut Pro, Logic Pro X, and its FileMaker Pro database software. In addition, it offers various Apple-branded and third-party Mac-compatible and iOS-compatible accessories, including headphones, cases, displays, storage devices, and various other connectivity and computing products and supplies. The company sells and delivers digital content and applications through the iTunes Store, App Store, iBooks Store, and Mac App Store; and sells its products through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. It serves consumers, and small and mid-sized businesses, as well as education, enterprise, and government customers. The company was founded in 1977 and is headquartered in in Cupertino, California.

$1,000 invested five years ago = over $3,000 today

$10,000 invested five years ago = over $30,000

$100,000 invested five years ago = over $300,000

Home Depot (HD)

The Home Depot, Inc. operates as a home improvement retailer. The Home Depot stores sell various building materials, home improvement products, and lawn and garden products as well as provide installation, home maintenance, and professional service programs to do-it-yourself, do-it-for-me, and professional customers. The company offers installation programs that include flooring, cabinets, countertops, water heaters, and sheds, as well as act as a contractor to provide installation services to its do-it-for-me customers through third-party installers.

It primarily serves professional remodelers, general contractors, repairmen, small business owners, and tradesmen. The company also sells its products through online. As of March 13, 2014, it operated 2,263 retail stores in the United States, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces, and Mexico. The Home Depot, Inc. was founded in 1978 and is based in Atlanta, Georgia.

$1,000 invested five years ago = over $3,200 today

$10,000 invested five years ago = over $32,000

$100,000 invested five years ago = over $320,000 

Visa

Visa Inc., a payments technology company, operates as a retail electronic payments network worldwide. The company facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. It owns and operates VisaNet that is involved in the authorization, clearing, and settlement of payment transactions; and provision of fraud protection for account holders and assured payment for merchants. The company also offers a range of issuer processing services for participating issuers of Visa debit, prepaid, and ATM payment products. In addition, it provides electronic payment, risk management, and payment security solutions to online merchants; digital goods transactions services in online games, digital media, and social networks; and mobile financial services for mobile network operators and financial institutions in developing economies. The company offers its services under the Visa, Visa Electron, Interlink, and PLUS brands. Visa Inc. is headquartered in San Francisco, California.

$1,000 invested five years ago = over $3,100 today

$10,000 invested five years ago = over $31,000

$100,000 invested five years ago = over $310,000

Do you have a millionaire mind set?

Do your thoughts allow you to attract money? 

All wealth is taught.

Who taught you about how to invest and put money to work for you? All rich people have mentors. All rich people expect money to work for them.