If there is only one book you should buy in your education on high dividend stocks, then The Single Best Investment: Creating Wealth with Dividend Growth should be it. The key concept in this book is its focus on dividend growth as qualification for stock selection - the higher dividend growth you see year after year, the better.
Dividend growth is when a company raises its dividend it pays to investors holding shares in the company. The concept behind the book is that when searching for stocks, one should be looking for the companies that tend it raise the dividends paid to investors on an annual basis. The impact this has on a portfolio is massive.
For example, lets say you own 100 shares of Coca-Cola and today the dividend per share that the company pays you is $1.36 per share. Each year you would receive $136 in dividends from this high dividend stock. Now Coke has a real habit of raising its dividends every year so lets pretend its 2010 and Coke's annual dividend is $1.57 per share (the dividend was increased 5% each year). Now your 100 shares will be providing you with $157 per year in dividend income. You didn't need to do anything for it, just ensure that Coke still met your investing criteria.
The Single Best Investment: Creating Wealth with Dividend Growth will teach you how to use this powerful concept to increase your portfolio's income on a yearly basis. I highly recommend it as the first, second, third....book in your high dividend stock library.
Saturday, August 25, 2007
The Most Important Resource for Your High Dividend Stocks Library
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Labels: High Dividend Stocks
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