In the newly revised third edition of Get Rich with Dividends: A Proven System for Earning Double-Digit Returns, bestselling author and investing strategist Marc Lichtenfeld delivers a proven and reliable guide to realizing substantial returns - without taking on undue risk - using dividends. You’ll learn to generate significant income with the author’s sensible and low risk 10-11-12 System.
In the book, the author demonstrates techniques that won’t require you to babysit each and every investment, freeing you up to enjoy more fulfilling pursuits as your nest egg and income streams grow steadily. You’ll also find: - Proven techniques to generate 12% average annualized returns over the long term - Ways to make dividends the cornerstone of your investment and income strategy - Methods for reducing risk and increasing returns at the same time
An essential resource for retail investors everywhere, Get Rich with Dividends: A Proven System for Earning Double-Digit Returns also deserves a place on the bookshelves of anyone interested in the financial and stock markets, as well as readers with an interest in business.
Table of Contents
Foreword by Alexander Green xiii
Preface xvii
Chapter 1 Why Dividend Stocks? 1
“Y’all Must’ve Forgot” 5
Marc Lichtenfeld’s Authentic Italian Trattoria 8
The Numbers 9
Keeping Up with Inflation 12
The 10-11-12 System 14
Summary 16
Notes 16
Chapter 2 What Is a Perpetual Dividend Raiser? 19
Dividend Aristocrats 20
The Index 21
The Champions 23
Junior Aristocrats 26
Survivorship 29
Summary 30
Chapter 3 Past Performance Is No Guarantee of Future Results, but It’s Pretty Darn Close 31
Performance of Perpetual Dividend Raisers 34
How Do Bonds Compare? 49
Are You an Investor from Lake Wobegon? 52
Summary 56
Notes 56
Chapter 4 Why Companies Raise Dividends 59
Buybacks versus Dividends 60
Management Speaks 65
Attracting the Right Shareholders 68
Signals to the Market 72
Summary 73
Notes 74
Chapter 5 Get Rich with Boring Dividend Stocks (Snooze Your Way to Millions) 75
How Much Do You Want to Make? 75
Summary 87
Note 87
Chapter 6 Get Higher Yields (and Maybe Some Tax Benefits) 89
Buying $1 in Assets for $0 90 89
MLPs 98
REITs 100
BDCs 101
You Don’t Have to Play Mahjong with Mrs. Zuckerberg 103
Preferred Stocks 105
Summary 107
Chapter 7 What You Need to Know to Set Up a Portfolio 109
The Oxford Income Letter Portfolio An Example 111
Setting Up the Portfolio 115
Yields 118
Payout Ratio 121
Dividend Growth Rate 126
Special Dividends 128
Summary 131
Notes 131
Chapter 8 The 10-11-12 System 133
Yield 133
Dividend Growth 134
Payout Ratio 135
Formula 135
Numbers 147
When to Sell 156
Summary 158
Chapter 9 DRIPs and Direct Purchase Plans 159
Summary 163
Chapter 10 Using Options to Turbocharge Your Returns 165
Covered Calls: The Espresso of Income Investing 167
Option Prices 169
Volatility: An Option Seller’s Best Friend 170
Time Is on Your Side 171
Who Should Sell Covered Calls? 172
Annual Returns of 20% 173
Selling Puts 177
Summary 179
Chapter 11 Foreign Stocks 181
One Lump or Two? 182
Lumpy Perpetual Dividend Raisers? 184
Other Risks 186
Summary 188
Chapter 12 Taxes 189
Foreign Taxes 191
Tax-Deferred Strategies 192
Tax Law Changes 194
Summary 194
Note 195
Chapter 13 Crypto 197
Summary 200
Note 201
Conclusion: The End of the Book, the Beginning of Your Future 203
Glossary 207
Acknowledgments 211
About the Author 213
Index 215
