I recently had the chance to buy and read a popular book on dividend investing – Dividend Growth: Freedom Through Passive Income. There are two versions of this book and I read the version for Americans. Just in case you were wondering I am not receiving any compensation for this review. It is all my own honest original opinion (don’t forget I really did buy the book).
Let me just start off by saying that if you are looking for an all in one resource on dividend investing this is probably it. The book is 145 pages with no fluff and is easily worth the $10.
The main sections of the book cover the power of dividend growth, building a portfolio and the details of buying an actual stock. That is followed up by details on Canadian stocks, REITs, portfolio models and investing resources.
What I liked
This is a very personal account of dividend investment strategy. The author Mike explains why companies grow dividends and provides examples of companies that have been generating dividend growth for many years. The charts and detailed information related to each company are very helpful. He also gets into the nuts and bolts of some of the key ratios each investor needs to use to evaluate a dividend stock before buying. Understanding those ratios can be the key difference in becoming a successful dividend investor. The reader will learn where to find investment resources that help to filter for stocks that meet these key metrics.
The section on portfolio management is excellent and there is no doubt the author pulled from his experience as a financial planner to develop this section. The detailed instructions and information on diversification will be very helpful for anyone that is looking to build a winning dividend portfolio.
Should You Buy It
This book really has so much solid investment information in it that a short review here cannot do it justice. Most income investors will fit into one of the following 3 groups.
Novice Investor: This book will teach you the ins and outs of dividend stocks. By the end you will understand the components of dividend growth, dividend stocks and portfolio management.
Intermediate Investor: This book will help you get to the next level of building long term dividend income through investing in growth stocks. You can use the information in this book to develop your own investment rules for building a passive income portfolio.
Advanced/Expert Investor: If this is you then you already know what you are doing but probably still read books like this to gain from the perspective of other investors. This book won’t let you down.
Have you read this book? I’d love to hear your thoughts in the comments.