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Get Rich with Dividends: A Proven System for Earning Double-Digit Returns, 2nd Edition

ISBN: 978-1-118-99413-9
240 pages
February 2015
Get Rich with Dividends: A Proven System for Earning Double-Digit Returns, 2nd Edition (1118994132) cover image

Description

2016 Book of the Year award winner by the Institute for Financial Literacy

"Set it and forget it" investing, with less risk and higher returns

Get Rich with Dividends is the bestselling dividend-investing book that shows investors how to achieve double-digit returns using a time-tested conservative strategy. Written by a nineteen-year veteran of the equity markets, this invaluable guide shows you how to set up your investments for minimal maintenance and higher returns, so you can accumulate wealth while you focus on the things that matter. Using the author's proprietary 10-11-12 system, you'll learn how to generate the income you need on a quarterly or even monthly basis. You'll discover the keys to identifying stocks that will return twelve percent or more every year, and how to structure your investments for greater security and financial well being. This method is so easy to use, you'll want to teach it to your children early to set them up for financial independence and help them avoid the problems that plagued many investors over the past decade.

Dividends are responsible for 44 percent of the S&P 500's returns over the last eighty years. They represent an excellent opportunity today, especially for investors who have been burned in recent meltdowns and are desperate for sensible and less risky ways to make their money grow. This book describes a framework that allows investors to reap higher returns with a low-to-no maintenance plan.

  • Set up an investment system that requires little to no maintenance
  • Achieve double-digit average annualized returns over the long term
  • Focus on other things while your money works for you
  • Increase returns even with below-average growth in share price

Market risk is high and interest rates are low, making it a perfect time to get started on a more sensible wealth generation strategy. With expert guidance toward finding and investing in these unique but conservative and proven stocks, Get Rich with Dividends is the only book on dividend investing you'll ever need.

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Table of Contents

Preface xi

Chapter 1 Why Dividend Stocks? 1

“Y’all Must’ve Forgot” 4

Marc Lichtenfeld’s Authentic Italian Trattoria 7

The Numbers 9

Keeping Up with Inflation 12

The 10–11–12 System 13

Summary 15

Notes 15

Chapter 2 What Is a Perpetual Dividend Raiser? 17

Dividend Aristocrats 18

The Index 19

The Champions 21

Junior Aristocrats 23

Survivorship 26

Summary 27

Chapter 3 Past Performance Is No Guarantee of Future Results, but It’s Pretty Darn Close 29

Performance of Perpetual Dividend Raisers 32

How Do Bonds Compare? 47

Are You an Investor from Lake Wobegon? 50

Summary 54

Notes 54

Chapter 4 Why Companies Raise Dividends 57

Buybacks versus Dividends 58

Management Speaks 62

Attracting the Right Shareholders 65

Signals to the Market 69

Summary 70

Notes 71

Chapter 5 Get Rich with Boring Dividend Stocks (Snooze Your Way to Millions) 73

How Much Do You Want to Make? 73

Summary 85

Note 85

Chapter 6 Get Higher Yields (and Maybe Some Tax Benefits) 87

Buying $1 in Assets for $0.90 87

MLPs 94

REITs 96

BDCs 97

You Don’t Have to Play Mahjong with Mrs. Zuckerberg 99

Preferred Stocks 101

Summary 103

Chapter 7 What You Need to Know to Set Up a Portfolio 105

The Oxford Income Letter Portfolio—An Example 107

Setting Up the Portfolio 110

Yields 114

Payout Ratio 116

Dividend Growth Rate 121

Special Dividends 125

Summary 128

Note 128

Chapter 8 The 10–11–12 System 129

Yield 129

Dividend Growth 130

Payout Ratio 131

Formula 131

Numbers 143

When to Sell 150

Summary 153

Chapter 9 DRIPs and Direct Purchase Plans 155

Summary 160

Chapter 10 Using Options to Turbocharge Your Returns 163

Covered Calls: The Espresso of Income Investing 164

Option Prices 167

Volatility: An Option Seller’s Best Friend 168

Time Is on Your Side 169

Who Should Sell Covered Calls? 170

20% Annual Returns 171

Selling Puts 175

Summary 177

Chapter 11 Foreign Stocks 179

One Lump or Two? 180

Lumpy Perpetual Dividend Raisers? 182

Other Risks 184

Summary 186

Chapter 12 Taxes 187

Foreign Taxes 188

Tax-Deferred Strategies 189

Tax Law Changes 191

Summary 192

Note 192

Conclusion The End of the Book, the Beginning of Your Future 193

Glossary 197

About the Author 201

Acknowledgments 203

Index 205

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Author Information

MARC LICHTENFELD is the Chief Income Strategist of the Oxford Club and Editor of the Oxford Income Letter where he runs the Instant Income, Compound Income, and Retirement Catch-Up/High Yield Portfolios. Marc is also the founder and editor of Dividend Multiplier, the Oxford Systems Trader, and Lightning Trend Trader. A featured speaker at investment conferences, he has spoken about dividend investing at meetings all over the world. Marc is often featured on national media. He appears regularly on CNBC, and his work has appeared on WSJ.com, Marketwatch, and U.S. News & World Report among others. Marc is also the only published financial analyst to ring announce world championship boxing and mixed martial arts on HBO, Showtime, and ESPN.

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