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Top 10 Habits of Millionaires for Building Wealth

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The Top 10 Habits of Millionaires for Building Wealth

The Top 10 Habits of Millionaires for Building Wealth

If building large amounts of wealth was easy, then almost anyone could do it.

However, we know that only 6.4% of American adult population are millionaires, and the reality is that not all of those are self-made.

What habits and practices helped this elite group in accumulating large amounts of wealth, and how can we apply these to our own careers to become more financially independent?

Copying the Habits of Millionaires

Today’s infographic from StocksToTrade.com skips the silver bullets and “get rich quick” tricks to show the real habits of millionaires that have led to wealth accumulation over time.

Many of these habits are not particularly glamorous, but remain essential for the long-term success of entrepreneurs and investors. They tend to fall in categories such as: hard work, persistence, passion, acquiring self-knowledge, associating with the right people, and staying healthy.

Here are the most important statistics to consider:

  • 88% of the rich devote 30 minutes or more each day to self-education or self-improvement.
  • 76% of the rich aerobically exercise for 30 minutes or more, every day.
  • 86% of the rich who liked what they did for work made $3.4 million in 32 years
  • 7% who loved what they did made $7.4 million in 12 years.
  • 92% of rich say good luck had nothing at all to do with their wealth. They just never gave up.
  • 88% of millionaires believe relationships are critical to financial success.
  • 94% of wealthy individuals read current events every day.
  • 88% of the rich people say that saving money was incredibly important to their success.
  • 93% of the self-made millionaires attributed their wealth to their mentors’ help.
  • 86% of wealthy, successful people associate with other success-minded people.
  • 79% of the rich read educational, career-related material.

In other words, it’s not a simple idea or plain old luck that leads to success.

The stats above show it is the daily habits and practices that count in the long run.

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Markets

Uncovering Income: Dividend Stocks With Strong Yields

Some companies are cutting or suspending dividends. Which dividend stocks can investors consider for stable distributions and strong yields?

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Dividend Stocks

Uncovering Income: Dividend Stocks with Strong Yields

Amid the current market volatility, attractive income-generating investments can be hard to find.

Treasury bond yields hover near record lows, and U.S. companies face restrictions on issuing dividends if they accept COVID-19 stimulus funds. Moreover, Goldman Sachs estimates dividends for S&P 500 stocks will decline by 25% this year.

Which stocks can investors turn to for stable distributions and relatively high dividend yields? Today’s visualization shows 35 stocks that may meet this criteria, leveraging Goldman Sachs data as published by Forbes.

The Dividend Stocks to Watch

To compile the list, Goldman Sachs identified stocks from the Russell 1000 index that met a number of requirements:

  • A minimum annualized dividend yield of 3%
  • An S&P credit rating of at least BBB+
  • Ample cash on hand
  • Strong balance sheets
  • ”Reasonable” payout ratios
  • At least average performance since the market peak

Dividend yields, which measure dividend income in relation to the share price, were initially calculated March 27. We have updated them as of market close on April 8. Here’s the full breakdown, sorted from highest to lowest dividend yield:

RankCompanyTickerAnnual Dividend YieldSector
1CenterPoint Energy, Inc.NYSE: CNP6.90%Utilities
2Wells Fargo & CompanyNYSE: WFC6.74%Financials
3People's United Financial, Inc.NASDAQGS: PBCT6.34%Financials
4Franklin Resources, Inc.NYSE: BEN6.28%Financials
5Regency CentersNASDAQGS: REG5.82%Real estate
6Truist FinancialNYSE: TFC5.50%Financials
7International Business MachinesNYSE: IBM5.43%Tech
8Omnicom Group Inc.NYSE: OMC4.76%Communication services
9U.S. BancorpNYSE: USB4.71%Financials
10Raytheon Technologies (merger of Raytheon and United Tech.)NYSE: RTX4.69%Industrials
11NetApp, Inc.NASDAQGS: NTAP4.69%Information Technology
12The PNC Financial Services Group, Inc.NYSE: PNC4.62%Financials
13Eaton Vance Corp.NYSE: EV4.34%Financials
14Nucor CorporationNYSE: NUE4.12%Materials
15United Parcel Service, Inc.NYSE: UPS4.09%Industrials
16M&T Bank CorporationNYSE: MTB4.09%Financials
17Exelon CorporationNASDAQGS: EXC4.07%Utilities
18Archer-Daniels-Midland CompanyNYSE: ADM3.95%Consumer staples
193M Company NYSE: MMM3.95%Industrials
20Emerson Electric Co.NYSE: EMR3.84%Industrials
21Sysco Corp.NYSE: SYY3.81%Consumer staples
22Mid-America Apartment CommunitiesNYSE: MAA3.61%Real Estate
23Essex Property Trust, Inc.NYSE: ESS3.55%Real Estate
24MDU Resources GroupNYSE: MDU3.53%Utilities
25Cummins Inc.NYSE: CMI3.51%Industrials
26Sonoco Products Co.NYSE: SON3.50%Materials
27Cisco Systems, Inc.NASDAQGS: CSCO3.45%Information Technology
28American Electric Power Company, Inc.NYSE: AEP3.36%Utilities
29The Hartford Financial Services Group, Inc.NYSE: HIG3.36%Financials
30NiSource Inc.NYSE: NI3.30%Utilities
31Caterpillar Inc.NYSE: CAT3.23%Industrials
32Everest Re Group, Ltd.NYSE: RE3.13%Financials
33Bristol-Myers Squibb CompanyNYSE: BMY3.09%Health care, pharmaceuticals
34The Home Depot, Inc.NYSE: HD3.08%Consumer discretionary
35Bank of America CorporationNYSE: BAC3.07%Financials

Note: From the original list, 5 stocks have been excluded as they no longer meet the 3% annualized yield threshold.

Centerpoint Energy, an electric and natural gas utility company, is at the top of the list. Since utility stocks are generally considered to be recession-resistant, investors may benefit from both the company’s yield and its defensive qualities.

Financials are the most-represented sector, with 11 companies on the list. Although regulators have pressured European banks to suspend dividend payments, U.S. banks will likely be able to continue their distributions. Top banking executives have argued they have sufficient capital to weather the COVID-19 crisis, and that halting payments would be “destabilizing to investors.”

There are also a number of well-known names on the list, including Home Depot, IBM, and 3M. The latter is the largest maker of respirator masks worldwide, and has been providing critical supplies to the U.S., Canada, and Latin America.

Caution: Volatility Ahead

As the pandemic’s financial impact continues, it’s likely many companies will delay or suspend their dividends. To avoid falling into “yield traps”—a trap in which an attractive yield could be due to a fundamental business problem—investors can screen for the qualities laid out above.

A strong balance sheet, good credit rating, and average or better performance since the downturn can all help point towards stability.

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Investor Education

Bridging the Gap: Wealth Isn’t Just for the Wealthy

The UK has a financial adviser gap, leaving about 51 million adults without advice. Learn how wealthtech makes investing accessible for everyone.

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wealthtech

In the UK, money is the #1 cause of stress—ranking above physical health, work, or family.

When people begin investing, they see immediate emotional benefits compared to non-investors. In fact, investors are 16 percentage points happier, and 23 percentage points more positive about their well-being.

However, only 37% of Brits hold market-based investments. So why aren’t more people taking steps to invest? Today’s infographic from BlackRock outlines the barriers people face, and how wealthtech can help address these issues at scale.

wealthtech

The Wealth Problem

A variety of hurdles keep people from taking control of their finances.

  1. Lack of Resources: 59% of Brits feel they don’t have enough money to invest.
  2. Lack of Knowledge: 39% say a lack of knowledge holds them back.
  3. Fear of Failure: 34% are afraid of losing everything if they invest.

All of these factors culminate in insufficient investing. In fact, 50% of the €26 trillion European wealth market is currently in uninvested cash, earning zero interest.

What’s the Current Solution?

Traditionally, investment advisers helped tackle these issues. However, investors have faced challenges accessing professional advice in recent years.

A shortage of UK advisers is a main contributing factor:

  • There are only 26,700 advisers, who can service an average of 100 clients each.
  • This leaves over 51 million adults without professional advice.

Among available advisers, many impose investment minimums or fees that create barriers for lower-income populations. Financial advisers charge an average of £150/hour, and half of all surveyed advisers turned away clients with less than £50,000 to invest.

With so many hurdles to overcome, how can Brits take charge of their investments?

A Modern Solution

Wealth technology—or simply wealthtech—helps address these issues at scale, offering four main digital-first solutions:

  1. Helps investors build better portfolios.
    Gone are the days of rudimentary spreadsheets. With the help of algorithms and machine learning, investors can now automatically build sophisticated portfolios.
  2. Helps advisors scale their services.
    The automation of time-consuming processes allows advisers to service more clients.
  3. Reaches more people.
    Wealthtech is accessible for all, not just the wealthy. For example, micro-investing apps allow investors to make small, regular contributions without paying a commission.
  4. Modernises infrastructure.
    Wealthtech updates old legacy systems with more streamlined, automated systems. As a result, paper-based processes are replaced with mobile transactions that can be done with the click of a button.

These benefits can be applied across various branches of wealth management.

The Wealthtech Ecosystem

Investors can choose one of three main paths, based on their level of knowledge and interest.

“Do It Yourself” Investing
Confident investors who enjoy managing their own money can trade securities through self-directed online platforms.

“Do It For Me” Investing
Novice investors can use platforms that execute trades on their behalf, such as micro-investing or robo-advisers.

“Do It With Me” Investing
For investors in the middle of this spectrum, certain platforms offer a hybrid of digital transactions and professional advice.

With a wide variety of solutions available, investing has never been easier.

Inclusive Wealth-Building

It’s clear Brits are open to the shift: 64% say new technology would help them be more involved in their investments.

As wealthtech evolves, it will be seamlessly integrated into daily life as part of a holistic financial services offering. Traditional barriers will be broken down, empowering individuals to take charge of their financial future.

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