How to Build a Huge Bonus in Your Portfolio

Kelli's Secret Seven months ago, Kelli began tracking the work of a meteorologist and hedge-fund consultant from South Dakota … As you'll see in the footage here, this man reveals how anyone can use the same strategy he uses to make his clients millions of dollars in the stock market. Simply click here for full details … How to Build a Huge Bonus in Your Portfolio By Jeff D. Opdyke, Editor of Profit Seeker Dear Sovereign Investor, Get ready for more of the same … The Federal Reserve meets this week for its last rate-setting session of the year — and Ben Bernanke's last stand as Fed Chairman. Some commentators are betting that the Fed will begin to taper now, though the big money says tapering will start in March. I have my own thoughts on when the Fed will taper — most likely in late spring, early summer — but regardless of who's right, tapering, whenever it happens, is not tightening. Tightening is pulling money out of the system. Tapering is simply slowing an out-of-control train to 135 miles per hour from 150. There's a pileup in the offing either way. No matter what comes of tapering talk this week, one fact will remain unchanged: The Fed will maintain interest rates at or near 0%.  And even if tapering does happen this week, the Fed will accompany the move with commentary promising to extend the period in which rates remain excessively low. After all, America's public finances are in a world of hurt from the federal level all the way down to the cities, and the only way to buy some time to try to work out a solution is to keep rates low for a long, long time. All of which means that in the nearly no-interest world we're stuck in until the latter years of this decade, you only have one option to generate meaningful income … Warning: Controversial Opportunity For the last several months, we've been researching a unique event. A happening so big that it's been called the "biggest financial opportunity of the last 20 years." And while you won't hear about this from the mainstream press, we've created a short presentation giving you all the details. Let me warn you now … this opportunity is controversial. But the people who take the time to understand this massive event could set themselves up to make a fortune in the coming months … Click here for full details. You must add more dividend stocks to your portfolio.  I was on a plane to Baltimore last week reviewing the holdings in The Sovereign Individual portfolio, and I noticed that the accumulated dividend returns we've picked up are substantial. An Australian bank has given us 14% in dividends overall, in less than two years — more than one-third of our total return in that company so far. We've picked up nearly 23% in a Singaporean REIT, nearly 60% of our total return. We've grabbed 16% in an Australian entertainment company, 24% in an American energy-transportation firm, 22% in a gold miner and nearly 70% in a European oil giant. Those gains from dividends represent between 29% and 62% of our total return in each of the stocks. And that is precisely the point. Too often dividends are ignored, particularly in periods when the stock market is spitting out big capital gains. And some high-profile investors have frequently argued against dividends. Yet, historically, dividends have represented between 30% and 40% of the stock market's total return over time, depending on the period measured. That's meaningfully large over time. Had you invested $10,000 in the S&P 500 Index in 1982, at the start of the super bull market, you would have average gains of 8.63% a year just on stock-price appreciation alone. Throw in the dividend payments along the way and your annualized return jumps to 11.34%. In percentage terms, that doesn't seem like a difference to hoot and holler about. Yet look at what it meant in dollar terms: $880,698 vs. $1.351 million — a difference of more than $470,000. Dividends in the S&P 500 accounted for 35% of the market's return. That's why dividends remain important today … because they will make a huge difference in your portfolio tomorrow. The Best Way to Earn 4% Today One of the dividend stocks I recommend these days is ConocoPhillips (NYSE: COP), one of the Big Oil names here in the U.S. The share price has come off about 7% this fall, and the stock now yields a solid 4% — far better than you'll find in one-year government debt and, to me, almost as safe, given the shenanigans in D.C. and the risk that far-right Republicans will ultimately force America into default. As the global economy picks up pace — and the economic readings from Europe, China and the U.S. indicate that's happening — oil prices will drift higher. ConocoPhillips will earn more money, and more money means an increasing dividend payment over time. What's more, Conoco's dividends have risen or at least remained steady for the past 23 years.  The company has been increasing its base of oil and gas reserves, largely through drilling rather than buying reserves, which means its exploration program is effective. By the end of 2017, it will add more than 400 million barrels of oil-equivalent production per day, and it will do so at cash margins that, at today's oil prices, are about $40 a barrel higher than the company's current production costs. That's a huge improvement over its current cash margin of $28, and it means ConocoPhillips has wide latitude in surviving oil-price volatility and nice leverage for increased profits as oil prices rise. To me, it's the quintessential kind of dividend payer to stuff into your portfolio for the long term. The shares trade on the New York Stock Exchange under the symbol COP, and they're a buy up to $72. I expect they'll top $90 within 18 months. Until next time, stay Sovereign … Jeff D. Opdyke Editor, Profit Seeker P.S. To learn more about other opportunities to boost your portfolio, click here. TODAY'S EDITOR Jeff D. Opdyke For his Profit Seeker subscribers, Jeff is always looking for companies in position to benefit from the rise of a growing global middle class. Click here to learn more. BECOME A SUBSCRIBER When the next economic crisis hits – will you be prepared? As a subscriber to The Sovereign Individual, we will arm you with the tools and strategies needed to prepare and prosper in the months ahead. SUBSCRIBE NOW RECENT ARTICLES 12/16/2013 Watch Out: Freedom Ship Ahoy! Imagine a giant, libertarian paradise roaming the international waters of the world ... 12/13/2013 Most Meteorologists Don't Know About This … It's the "secret weapon" used when making a forecast … 12/12/2013 Set Yourself up for a Blizzard of Profits Winter is here! 12/11/2013 A New Way to Strike a Profitable Balance With Weather Alternatives in life are where the path to substantial wealth routinely hides. STAY INFORMED Whitelist Us Follow Us on Twitter Like Us on Facebook Privacy Policy The Sovereign Investor 55 NE 5th Avenue, Suite 200 Delray Beach, FL 33483 The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: http://thesovereigninvestor.com/ Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and should not be considered personalized investment advice. 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