Time for guide #2 to the blog. This post lists what I think is a good introduction to dividend investing and some of the nuances behind it. Enjoy!
- Core strategy: dividend investing – why dividend investing makes up the core of my investment strategy. Simple really. Better long term returns.
- Dividends; the great bear market protector – the 2nd best reason for dividend investing. Dividends protect your portfolio in down markets and actually enhance returns due to reinvested dividends.
- Yield on cost; a critical dividend metric – how dividend growth leads to rising returns over time and how to calculate that return.
- Dividends account for 80-100% of world wide stock returns – dividends are an even more important to total return in markets outside the US.
- The magic dividend formula – throw out all those complex valuation models. Calculating expected returns for dividend stocks is easy.
- The power of dividends – a further dive into why dividends provide better returns. Not only due dividend payers return more than non-payers but dividend growth stocks provide higher returns than dividend stocks that don’t grow their dividends.
- The commutative property of dividends – a look into the often heated debate between higher yielding dividend stocks versus stocks with lower yields but growing dividends. In short, it depends on your goals and they type of investor you are.
- Timing high dividend stocks doesn’t work – market timing strategies like those based on the 200-day SMA work. They work for indexes and for dividend ETFs/high yield ETFs as well. However, they don’t seem to work for individual high dividends stocks.
- The importance of valuation for income investors – income investor often ignore valuation. They get caught up in the dividend yield and dividend growth. But dividend stocks can and do become over valued and thus valuation is an important topic for income investors.
- Dividends – a better retirement model – a retirement model based on dividend income is superior to other retirement models
- The dividend hammer – bonus. I couldn’t keep the list at 10 posts. I really like this post. It drives the point home on dividend investing.
And that rounds it out. There are other posts on dividends on the blog. Search on dividends or go to the dividend page on the blog to see all the posts.