Paul Tracy

ore investors are finding out about them every day. Or I shouldn't say they are finding out about them -- most investors have known about these "lifetime income generators" in one form or another for decades.

Instead, what's actually happening is more investors are putting their trust in these stocks, which I like to call "lifetime income generators." And why not?

In 2011, the S&P 500 Index was up and down... finishing the year flat. But I've found dozens of these lifetime income generators (I'll show you a few in a moment) that soundly beat the market for the year. And they accomplished that largely without the same ups and downs of the overall market.

It sounds too good to be true, but the secret to success behind these rare stocks is simple. Lifetime income generators are companies with stable businesses and strong cash flows that can be depended on to pay -- and increase -- their dividends year after year.

These stocks are pretty rare. Standard & Poor's has a Dividend Aristocrats Index that's made up of stocks that have increased dividends for 25 years or more. Only 42 stocks made it into the index at last count.

The good news? There are a number of companies that have consistently raised their dividends for years, but simply haven't made it the full 25 years yet. By my estimates, there are about 100 stocks I'd call lifetime income generators.

And if you buy their shares and let these stocks pay you over the long term, you can easily earn some enormous dividend yields that would otherwise be impossible to capture.


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