It’s every long-term investor’s dream to put money to work in an investment and then sit back and just watch the money grow. No worries, no concerns — just easy compounding profits.

And in a time when so many people have lost their shirts as a result of the global financial crisis, I think almost all investors are sharing this dream.

But it’s only a dream. Right?

Not exactly.

The combination of high profits and low risk doesn’t have to be just something that investors wish for. By investing in stocks offering juicy dividends as large as 20%, investors can accumulate 15% per year wealth growth at one-tenth the risk of growth stock investing.

I know many investors are hesitating when they encounter a security that pays a double-digit dividend yield, especially considering that the global financial system is bursting at the seams. Any dividend above 5% is getting tossed aside by investors who are fearful that it’s all too good to be true.

The Safest Place for Investors to Be In This Market

But based on my Cash Machine research, these investments paying nice dividends are the best place for investors to be for a reliable stream of income.

Why? Because even though market volatility will wreak havoc with day-to-day valuations, if the business and underlying assets that generate income are fundamentally sound, then you can have confidence that the cash flow from your dividend-paying stocks won’t be radically interrupted during uncertain times.

You also need to consider that we’re in a world where capital gains are hard to come by. There’s no guarantee when we’ll see a full recovery in the U.S. economy and stock markets.

And that’s why it’s important to have a high-yielding income strategy right now.

Why Steady Income-Generating Investments Are the Name of the Game

>

In the upcoming months, we’re going to see high-yielding income strategies take on more significance. I mean, we can’t live on zero funds! We need to have a steady flow of cash.

So if investors’ investments aren’t providing it and they’re sick of measly 1% and 2% yields from their banks or Treasury investments, they’re going to start looking into high-dividend-paying stocks.

And now is the best time to be diving into these stocks.

Over the past two months, we’ve watched the S&P 500 rally 12%. The tone of the markets has definitely improved. But, as I said above, no one can predict when the full recovery will occur. That’s why even if you’re forecasting a recovery in mid to late 2010, now is the time to be aggressive and buy strategic high-income assets.

As most investors know, the market looks out six to nine months in pricing assets. That means, we can expect equity and corporate bond markets to remain range-bound in the second quarter. But after that, we’ll likely see the major averages break out to the upside.

The Time to Start Preparing is Now

And that’s exactly what I’ve been doing in my Cash Machine service. In current environment, it’s important to take a broad view of the income markets, focusing on not just aggressive investments offering tantalizing 20%+ yields, but also more conservative income picks with yields that lie somewhere between what the banks pays and the double-digit yields that can evoke a higher level of volatility.

I understand that many investors are being cautious right now, and I also admire that other income investors are seeking opportunities in a down market. So I have taken a step back to refocus Cash Machine to fit both of these needs.

This new focus of streamlining our income strategies in a two-tiered approach gives us the opportunity to balance our risk and take advantage of the historically low valuations for blue chip stocks with hefty dividends and low payout ratios — as well as make room for other high-quality, high-yielding debt securities.

No matter what the market throws our way, our Cash Machine investments are still paying out juicy dividends upwards towards 25%. And even as the market remains volatile, dividend checks will arrive in smart investors’ mailboxes. Learn more about how you can jumpstart your very own high-yield portfolio.