Dividend Investing: Concise & 2nd Edition

This is a popular strategy now. It is expected to be so for the next 10 years or until the average CD rate beats the average dividend rate. We have a lot of retirees who depend on income from investments. The low interest rates from CDs and bonds drive these folks to dividend stocks.

Here is a simple screen to find these stocks. First find the stocks that have dividend rates more than 2% (about half of the S&P 500 stocks). Take out those sectors that give dividends as a return of equity (REITs and many partnerships). Eliminate the stocks with bad fundamentals such as high expected P/E, high debt (compared to companies in the same sector), etc. Next ensure that they have a good history of maintaining or increasing dividends (i.e. dividend growth).

As of 5-2014, it has been working well for the last five years. Follow my article on how to be cautious on bank stocks, the drug companies, the miners, the insurers and small foreign companies. In addition the stocks with good dividends fluctuate less in prices especially during market plunges.

However, when a strategy is over-used, it may not work any longer. There may be a mild bubble on these dividend stocks (due to too many followers). We will discuss how to protect our dividend portfolios.

In addition, we should not buy (actually should sell most stocks you own) stocks during a market plunge. I will describe how to detect market plunges and corrections. Since 2000, we have two market plunges with an average loss of over 45%. We hope to have a maximum loss of 25% and are ready to return to the market as indicated by the simple marketing technique described in this book.

Initial date: 02/2020
Size: 70 pages (6*9)