It’s time to celebrate!
The third edition of Chief Income Strategist Marc Lichtenfeld’s bestseller Get Rich with Dividends officially launches tomorrow!
In this revised and updated version, you’ll discover…
- Never-before-seen data on how Marc’s 10-11-12 System performed during the volatile 2020 and recent bear market…
- New information on taxes, real estate investment trusts and a variety of other topics…
- A brand-new chapter on cryptocurrencies.
Larry Kudlow, host of Kudlow on Fox Business Network, reviewed the book and said, “This is the type of financial education you just don’t get in school.”
The previous edition won the 2016 “Book of the Year” award from the Institute for Financial Literacy. And it’s been published in four languages.
– Nicole Labra, Senior Managing Editor
The past 15 months have been volatile ones for investors everywhere.
Almost every category of stocks is down: large caps, small caps, growth stocks, value stocks, foreign stocks and domestic stocks.
But one category has held up better than the rest: dividend payers.
This is nothing new, really.
A few weeks ago, Kiplinger published a list of the top-performing stocks of the last 30 years.
On the list were steady-Eddie dividend payers like Coca-Cola, Altria, UnitedHealth, Mastercard, Visa, Home Depot, JPMorgan Chase & Co., Exxon Mobil, Procter & Gamble, Johnson & Johnson, Walmart and Microsoft.
Yet, when it comes to the stock market, most investors prefer glamour to profits.
Tell most investors about a company with cutting-edge technology, an exciting Phase 3 drug candidate or a new gold strike and they are all ears. But tell them about a blue chip stock with steady sales, a big order backlog and a rising dividend yield and they are more likely to stifle a yawn.
That’s unfortunate. Because, contrary to what most investors believe, startling innovation is not a good predictor of business success.
(As the famous industrialist and steel magnate Andrew Carnegie succinctly put it, “Pioneering don’t pay.”)
A young company that is just feeling its oats – and retaining all its earnings – is unlikely to be the best long-term investment. It’s a widely recognized fact that 80% of new businesses fail in the first five years.
What really makes money for investors over time – and without the hair-raising volatility of hypergrowth stocks – is steady businesses paying regular dividends.
My friend and colleague Marc Lichtenfeld understands this well.
Marc is a veteran of the financial markets and the longtime Chief Income Strategist of The Oxford Club.
Over the years, his commentary has appeared in The Wall Street Journal, Barron’s and U.S. News & World Report, among others.
In an excellent, expanded edition of his book Get Rich with Dividends – out tomorrow – Marc shows investors how and why to invest in great dividend stocks.
And let me make two things clear at the outset. First, you could not find a more worthy, knowledgeable or trustworthy guide to the investment landscape. And second, this investment approach really works.
How can I be sure? Marc runs The Oxford Club’s Instant Income, Compound Income and High Yield portfolios. These are portfolios based solely on growth and income investments. He has done a superb job. In fact, when I looked at the returns recently, I had to ask him, “Holy crap, Marc. How do you do it?”
Fortunately, Marc shows you how you can earn returns like this yourself. He has made me a believer. At investment seminars today, I tell attendees, if you are looking for growth, invest in dividend stocks. If you are looking for income, invest in dividend stocks. If you are looking for safety, invest in dividend stocks.
Why? Earnings may be suspicious due to creative accounting. Revenues can be booked in one year or several years. Capital assets can be sold and the value listed as ordinary income. But cash paid into your account is a sure thing, a litmus test of a company’s true earnings. It’s tangible evidence of a firm’s profitability.
Regular payouts impose fiscal discipline on a company. And history reveals that dividend-paying stocks are both less risky and more profitable than most stocks.
Dr. Jeremy Siegel, a professor of finance at the Wharton School of the University of Pennsylvania, has done a thorough historical investigation of the performance of various asset classes over the last 200 years, including all types of stocks, bonds, cash and precious metals. His conclusion? High-dividend payers have outperformed the market by a wide margin over the long haul.
There is an awful lot of fear and anxiety about the economy and the stock market today. Investors are understandably confused and uncertain about what to do with their money.
Marc has your solution. He demonstrates that even during market declines, dividend-paying stocks hold up better than non-dividend-paying stocks and often fight the broad trend and rise in value. The reason is obvious: These tend to be mature, profitable companies with stable outlooks, plenty of cash and long-term staying power.
Bear in mind that U.S. companies are sitting on a record amount of cash right now, nearly $6 trillion. A lot of this cash is rightfully going back to shareholders. The Dow currently yields more than bonds. And dividend growth among U.S. companies has averaged 11% per year over the last two years, more than double the long-term dividend growth rate.
The current outlook is especially promising. Since 1980, for instance, the second-highest quintile of dividend-paying stocks in the Standard & Poor’s 500 returned 13.9% annually. That’s good enough to double your money in under 5 1/2 years – or nearly quadruple it in 10.
Yet, as Marc points out in his new book, an investor would be foolish to plunk down money for a stock just because the dividend is large. You have to be selective. The market is full of “dividend traps,” troubled companies that pay hefty dividends to keep investors from bailing out.
In Get Rich with Dividends, you’ll learn how to avoid those and zero in on potential winners. He shows you how to look at cash flow and payout ratios and whether the dividend is sustainable.
The payoff here is large.
It astonishes me that investors are willing to lend money to the U.S. Treasury for the next 10 years at around 3%. What a terrible bet, one that virtually guarantees a negative, real (after inflation) return over the next decade.
A far better bet is a diversified portfolio of dividend-paying stocks. Over the nine decades through 2021, dividends contributed 40% of the U.S. stock market’s return, according to Hartford Funds. Sometimes it was much more. During the 1970s, for example, dividends generated 73% of returns.
Marc makes a strong case that dividend stocks today represent a historic opportunity. Not only are U.S. companies flush with cash, but payouts are less than one-third of profits, a historic low.
Dividends alone won’t generate a mouthwatering return. But they will rise over time – and surprising things happen when you reinvest them. Picture a snowball rolling downhill.
Albert Einstein understood this. As he observed, money compounding “is the most powerful force in the universe.” And the best way to compound your money? Great companies that pay steady, rising dividends.
This book is your key because Marc does a great job of showing you just where to find them.
Get Rich with Dividends is a classic. I consider it essential reading for every serious investor, especially in these volatile times.
For more information – or to pick up your copy at a substantial discount – just go here.
Note: Be sure to grab your copy of Get Rich with Dividends. It’s an absolute must-read for anyone who wants to grow their wealth or prepare for retirement.
And I’m far from the only one who thinks so. Here’s one reader’s review – taken directly from Amazon:
I really want to thank this author for writing such a fantastic book. It is evident that he has many years of experience in this field, and knows what he is talking about. Every sentence he has said in this book struck a chord with me, and really made me stop and think about a dividend investing strategy. I am now super motivated to pick good companies that will pay me dividends as the years go by.