Have Your Cake and Eat It, Too

From our earliest days in childhood, we've been drilled with the fact that we can't have our cake and eat it, too.

So why, as a grown-up, would I think that this long-established paradigm has changed? Well, it really hasn't, except that I believe I've found some investments that, counter to prevailing logic, offer cake both now and later. That's something readers of The Millionaire Zone like to see.

When I invest in a company, I seek rewards or returns on my invested capital. Now, popular investing mantras hold that you can either have your rewards today in the form of dividends, or in the future in the form of realized company growth. But usually not both.

Why? Because growing companies need capital to finance the growth, and the most economical source for that capital is internally generated funds -- reinvested earnings. If the earnings are reinvested, there isn't much left over to pay you as a dividend. ...