The Little Book of Big Dividends PDF

The Little Book of Big Dividends PDF (A Safe Formula for Guaranteed Returns) presents an action plan for dividend-hungry investors. You’ll learn about the pitfalls, how to find the opportunities, and will learn how to construct a portfolio that generates big, safe dividends easily through the BSD (Big, Safe Dividends) formula.

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Category: Stock

Author: CHARLES B. CARLSON

Language: English

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Introduction

Everyone needs to invest, but where do you invest during bear markets?

The massive stock declines over the past year have eroded savings, but this doesn’t mean you should stuff your money under a mattress. It needs to be put to work getting some return so that it will grow.

Smart investors will turn to high dividend paying stocks to get a stable and growing stream of income. Dividend investing-that provides an income beyond any gain in the share price-may be the investor’s best weapon. Dividends are safe, largely reliable, and maybe at the their cheapest levels in many years. While the best paying dividend stocks of recent years, such as financials, took a huge beating in 2008, opportunities will abound in 2010 and beyond-if you know where to look.

In The Little Book of Big Dividends, dividend stock expert Chuck Carlson presents an action plan for dividend-hungry investors. You’ll learn about the pitfalls, how to find the opportunities, and will learn how to construct a portfolio that generates big, safe dividends easily through the BSD (Big, Safe Dividends) formula. If you’re a bit adventurous, Carlson has you covered, and will teach you how to find big, safe dividends in foreign stocks, preferred stocks, ETFs, real estate investment trusts, and more.

Contains the simple tools, strategies, and recommendations for finding big, safe dividends
Helps you put a complete portfolio together that pays dividends every month
Show you the top dividend paying stocks with their dividend payment dates

It doesn’t get any easier than this, and in these turbulent times, you can’t afford to ignore the power of dividends. Read The Little Book of Big Dividends and gain a better perspective of how you can protect yourself for the future.

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Foreword

FINALLY—SENSIBLE INVESTING made simple. I have known and interviewed Chuck Carlson for over 20 years. He never changes his tune to fit fashion or fad. He just goes along making money, consistently, as his stocks pay dividends. And since only companies that have profits can afford to consistently pay dividends, these stocks have a record of increasing share price, as well.

Now he has made it even easier. In this book, Chuck starts with his basic principle: You can make big money by investing for the long term in dividend-paying stocks. He has even created a free web site to help you find those stocks. And to top it all off, he shows you how to buy many of these stocks—either a one-time purchase or regular small (or large) monthly investments—at no cost, no commissions, no fees, directly from the company.

You might be wondering where this secret has been hiding all these years. Well, it has been hiding in plain sight. For all the years I have known him, Chuck has been trying to explain that investing doesn’t have to be complicated, expensive, mathematical, or time-consuming. Maybe it’s just that now we’re ready to listen!

We’ve seen genius fail, and technology lead us astray. We’ve watched Nobel prizewinning economists lose billions, and astrophysicist investment bankers blow trillions. The markets have survived all this hubris. Now it’s time to get back to basics.

The idea of investing for dividends sounds rather quaint—something your grandfather did in the olden days. So it might surprise you that from 1926 to the present, dividends have accounted for 43 percent of the total return of the S&P 500 index!

Dividends fell out of favor until recently, because corporate executives were paid bonuses based on stock performance. Thus, they had an incentive to use the company’s excess cash to buy back shares, instead of paying dividends with the money. The share buybacks boosted that all-important measure, earnings per share.

With higher reported earnings, stock prices soared. And so did executive bonuses. We’ve lived through the sad results of that strategy. We’ve learned that even the best and brightest can’t beat
the market forever. You remember that old saying: If you can’t beat ’em, join ’em. In The Little Book of Big Dividends, Chuck Carlson shows you how to join the stock market’s unprecedented record of long-term growth.

First, you have to understand the importance of dividends to overall total return. It will require an amazing suspension of disbelief—in this era of instant gratification—to accept that fact that a 3 percent annual dividend, reinvested regularly, can grow wealth over time. Yet that’s just what the S&P 500 has provided, with dividends reinvested, over our lifetimes.

Then, you’ll have to step back from the logical presumption that if 3 percent is good, perhaps 10 percent is better. As Chuck explains, an extraordinary dividend yield is a dangerous temptation, a warning of trouble ahead. Perspective is critical. Those who stretch for yield without quality will soon learn the truth of that old saying:
“I’m not as concerned with the return on my money as I am about the return of my money!”

Finally, for those millions of boomers who will soon be searching for income in retirement, this book provides you with a road map to monthly dividend checks that will smooth your retirement planning process. Unlike annuities that offer fixed monthly payouts, dividends can provide increasing stipends as the company grows. Unlike bank CDs, which offer only a guaranteed principal and yield that could be dented by inflation, dividend-paying stocks also offer the potential of growth to keep up with inflation.

So before you dismiss the idea of investing for dividends as either hopelessly old-fashioned or totally boring, remember the old fable of the tortoise and the hare. The tortoise lived to a ripe old age and is enjoying retirement in Florida. So will you, if you’ll dedicate at least a portion of your investments to the principles explained here in The Little Book of Big Dividends.

Terry Savage

Terry Savage is the nationally syndicated Chicago Sun-Times financial columnist, and author of four books on personal finance, the latest of which is The New Savage Number: How Much Money Do You Really Need to Retire? ( John Wiley & Sons, 2009).

Table of Contents- The Little Book of Big Dividends PDF

Chapter One
The Check Is in the Mail 1
Chapter Two
Super Size Me, without the Heartburn 21
Chapter Three
If Einstein Was a Dividend Investor 33
Chapter Four
The World Is Your Oyster 45
Chapter Five
It Pays to Be Direct 61
Chapter Six
Postcards from the Hedge 79
Chapter Seven
Lifeguard on Duty 93
Chapter Eight
Juice Your Portfolio without Striking Out 105
Chapter Nine
When DRIPs Become Floods 127
Chapter Ten
If You Build It, Dividends Will Come 147
Appendix A
Advanced BSD Formula 161
Appendix B
The Ultimate Big, Safe Dividend Portfolio 169
Acknowledgments 17

Reviews

‘…presents an action plan for dividend-hungry investors…’ (The Star.my, September 2010).

“This is a book aimed at serious investors who want to shore up their portfolios with a time-tested stock asset. Carlso is a clear writer [and] makes his case very well for the power of dividends.”.
(SmartMoney.com)

“Provides excellent analysis. . . should be an important component of a private wealth adviser’s discussion with clients about sources of long-term investment return and the critical importance of reinvestment in building wealth. Carlson addresses portfolio diversification and risk management in an accessible way. Readers will appreciate the manner in which he ‘names names’ to paint a clear picture of how excess returns can be achieved through a simple and time-tested investment formula. He also underscores the need to supplement selection formulas with fundamental research in order to make optimal investment decisions.” (Financial Analysts Journal)

“Chuck addresses a topic of growing importance for aging baby boomers by sharing his time-tested techniques on selecting companies most likely to maintain and grow their payouts. Equally important, he clearly shows us how we may avoid ‘yielding to temptation.'” ―Sam Stovall, Chief Investment Strategist, Standard & Poor’s Equity Research

“Chuck Carlson is one of those rare people in the investment advisory industry that can combine solid investment strategies with an approachable writing style. The ideas and suggestions presented in The Little Book of Big Dividends can serve as a road map for buy-and-hold as well as more tactically oriented investors large and small.” ―John F. Tierney, Executive Director, Van Kampen Investments

“Every investor needs two things to be successful: a way to select the right stocks for a portfolio and a way to ensure that the portfolio continues to grow over time. Chuck Carlson’s new book gives you both. At a time when practical advice is at a premium, The Little Book of Big Dividends is invaluable.”―Robert Sheard, bestselling author of The Unemotional Investor and Money for Life

“If you are looking for an investment solution that has stood the test of time, then read about Chuck Carlson’s BSD (Big, Safe Dividend) formula and how you can set your portfolio up to thrive and survive in 2010 and beyond.”―Ben Fulton, Managing Director and Head of Global ETFs, Invesco PowerShares

About the author

CHARLES B. CARLSON, CFA,is CEO of Horizon Investment Services LLC, an investment advisory and money-management company. He is also CEO of Horizon Publishing, a publisher of investment newsletters. Horizon’s flagship publication, Dow Theory Forecasts, has been published weekly since 1946 and is one of the oldest investment newsletters in the country. Carlson is a bestselling author and is regularly quoted in the Wall Street Journal, Barron’s, and Money magazine, and is a frequent guest on CNBC, Bloomberg TV and radio, and CNN.

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