Kevin O’Leary has enjoyed phenomenal success over the years. He’s sold companies, built his personal brand, amassed wealth and inspired people across the globe to take control of their money. You’ve probably seen him on ABC’s hit show “Shark Tank”, helping entrepreneurs fuel their dreams… if the numbers are right.
One of Mr. Wonderful’s most admirable traits is his incredible self-discipline. If the terms aren’t right, he will not enter a deal and will not send his “soldiers” out to fight a losing battle. He does not get emotional about money because he understands that money has no emotion or soul – it is just trying to get a return. “Don’t cry about money, it never cries for you”, O’Leary says.
You can rest assured that O’Leary is not crying when he gets his dividend check, because his entire investment philosophy is based around cold, hard cash flow. Companies cannot lie about cash flow and it is the one thing that can make or break a business. Therefore, he only buys securities that pay yields.
Mr. Wonderful was influenced by his mother. Upon her death, he was made executor of her estate, whereupon he found her investment portfolio. Mrs. O’Leary used to tell her son never to buy a stock that doesn’t pay a dividend, because you have to get paid for what you buy. This is how Kevin lives life, no doubt influenced by his mother’s keen intuition and common sense. Kevin O’Leary now heads O’Leary Financial Group, which has over $1.5 billion invested in yield-bearing securities.
Cash flow from dividends can pay an important part in every investor’s life, as long as they never touch the principal, only the interest. That way, you’re just getting a 6% paycheck every year.Like O’Leary Financial Group’s slogan, you’ll “get paid while you wait.” Besides, buying stock in a company without a dividend is essentially letting them use your money for free. Don’t let them do that! They have to pay.
If your focus is on income investing, you might want to consider a diversified portfolio of dividend stocks. Over time, dividend payers have outperformed other investment vehicles, typically with less volatility.
Even John D. Rockefeller, once the world’s richest man, said, “Do you know the only thing that gives me pleasure? It’s to see my dividends coming in”. I’m sure Mr. Wonderful would agree.