It started out as an experiment. It wound up being one of the greatest investment discoveries we've ever found.

Four years ago, StreetAuthority co-founder Paul Tracy approached me with an idea. He wanted me to build a portfolio of dividend stocks that would pay out more than 30 dividend checks a month -- one for every day of the year. I must admit, I was a little skeptical at first.

The idea seemed too good to be true. I call this method of investing the "Daily Paycheck" strategy.

Submit Your Product or Invention Idea | Davison

Simply put, by creating a portfolio of high-yielding dividend stocks that pay distributions regularly and have a history of raising their payouts, I've successfully built an income machine that pays me each and every day.

My results are fully scalable.

Now, admittedly, there's another step to my strategy that has helped me accelerate my income stream these past few years, and I would be doing you a disservice if I didn't share it with you. By using my dividends to purchase more shares, compounding takes over. As a result, my next payment will be larger, which then buys more shares, and so on.

One of those investors chooses to take the cash and spend it as he pleases. The other decides he wants to reinvest his dividends. T has been able to beat -- the portfolio earns In fact, the investor who reinvests could be generating an effective yield of If you have even a little bit more time on your investment horizon or more money to invest, or additional dollars to invest each year , then the numbers only get better.

And keep in mind that these are conservative estimates. They don't include one penny of capital appreciation. Of course, I understand if you want your money now and you choose not to reinvest your dividends. But by not reinvesting your dividends, you will sacrifice the benefit of compound growth. Even so, the average yield on my portfolio is still 6.

Need Monthly Income? Some Stocks Pay You 12 Times a Year - AOL Finance

Before I started my premium advisory, The Daily Paycheck , I was anxious about generating a portfolio that could support me once I retired. I'm no longer anxious. Like my Daily Paycheck portfolio, my personal portfolio is generating more and more income every month. And I know that when retirement comes, I can just flick off the dividend reinvestment switch and start living off the income. That's the power of my Daily Paycheck strategy, and it's something I want every investor to experience.

Now that you know the idea behind my newsletter, I bet you are wondering how to build your own Daily Paycheck portfolio. To view this free presentation -- which includes a few high-yield picks to get you started -- you can visit this link.

10 Best Investment to get regular monthly income

This article was originally published by Dividend Opportunities under the title: A trade occurs when the buyer and seller agree on a price. Our in-depth tools give millions of people across the globe highly detailed and thoroughly explained answers to their most important financial questions. Each month, more than 1 million visitors in countries across the globe turn to InvestingAnswers. Financial Dictionary Calculators Articles. Ask the Experts View All.

Buffett, Icahn And Other Billionaires Are Buying These 3 Stocks. Three Biotechs That Could Double. Term of the Day. Normal 0 false false false MicrosoftInternetExplorer4 table.

CONTENT LIBRARY Financial Terms Calculators Education Investment Ideas Personal Finance About Us Advertise Contact Us. Terms of Use Privacy Policy Disclaimer.