Get Rich with Dividends: A Proven System for Earning Double-Digit Returns

240 Pages·2015·1.7 MB·English

by  Marc Lichtenfeld

Additional Praise for
Get Rich with Dividends
“Marc Lichtenfeld's book is a timely, necessary, and easy-to-read reminder about the
importance of dividend paying stocks. For a long time, especially during the tech boom,
investors sacrificed steady dividend payments in favor of a stock's growth potential.
Ultimately, however, stocks fell and those investors were left with neither cash nor
capital appreciation. Don't let this happen again. Read Marc's book.”
—Gregg Greenberg
Personal finance reporter, TheStreet.com
“In today's global financial environment, investors would be wise to empower
themselves with knowledge and insight. Mr. Lichtenfeld delivers on that mission.”
—Todd Harrison
Founder and CEO, Minyanville Media, Inc.;
author of The Other Side of Wall Street
“Marc Lichtenfeld's name may be hard to pronounce, but his guide book is easy to
implement. He practices what he preaches with his incredibly successful Perpetual
Income Portfolio at the Oxford Club. His book should be called Get Rich Sooner than
You Think. Investing in stocks that pay steady and rising dividends will make you a
fortune you can enjoy while you're still young!”
—Mark Skousen
Editor, Forecasts & Strategies
“Marc has put together a New Bible for Investing. And in the process, he's debunked
one of Wall Street's most widely held beliefs: that the average investor simply cannot
outperform the market. He can! All it takes is a little legwork to find great companies
that pay steady, rising dividends. And Marc's step-by-step system makes it easy. So put
it to work, get rich, and start spreading the good news.”
—Louis Basenese
Founder and chief analyst, Disruptive Tech Research
“Speculators can get lucky occasionally. They can even get rich once in a while. But if
you want to build wealth consistently, you have to let your money work for you. There
is only one time-tested strategy for doing this and that is through dividends and
reinvesting those dividends. However, investing in dividends is a strategy. Fortunately,
you now have one of the best guides and guidebooks in the business. Marc Lichtenfeld
is an accomplished researcher, with years of experience in the field of investing and
dividends. His information is well thought out, well researched, and well written. Save
yourself some time and set yourself up with a perpetual money machine by reading and
following Marc's advice—religiously! You will get rich . . . or richer by doing so.”
—Karim Rahemtulla
Editor, Wall Street Daily;
Author of Where in the World Should I Invest:
An Insider's Guide to Making Money Around the Globe
Get Rich with Dividends
A PROVEN SYSTEM FOR EARNING DOUBLE-DIGIT
RETURNS
Second Edition
Marc Lichtenfeld
Cover image: Money Land © iStock.com/imagedepotpro; Falling confetti © iStock.com/BanksPhotos
Cover design: Wiley
Copyright © 2015 by Marc Lichtenfeld. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
The first edition of Get Rich with Dividends was published by John Wiley & Sons, Inc. in 2012.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any
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Library of Congress Cataloging-in-Publication Data:
Lichtenfeld, Marc.
Get rich with dividends: a proven system for earning double-digit returns / Marc Lichtenfeld.—Second edition.
pages cm
ISBN: 978-1-118-99413-9 (cloth); ISBN: 978-1-118-99415-3 (ePDF);
ISBN: 978-1-118-99414-6 (ePub)
1. Dividends. 2. Portfolio management. I. Title.
HG4028.D5L53 2015
332.63′221—dc23
2014044967
For Holly, Julian, and Kira, who have made me rich
in the most important way
Contents
Foreword by Alexander Green
Preface
Chapter 1 Why Dividend Stocks?
“Y'all Must've Forgot”
Marc Lichtenfeld's Authentic Italian Trattoria
The Numbers
Keeping Up with Inflation
The 10–11–12 System
Summary
Notes
Chapter 2 What Is a Perpetual Dividend Raiser?
Dividend Aristocrats
The Index
The Champions
Junior Aristocrats
Survivorship
Summary
Chapter 3 Past Performance Is No Guarantee of Future Results, but It's Pretty Darn
Close
Performance of Perpetual Dividend Raisers
How Do Bonds Compare?
Are You an Investor from Lake Wobegon?
Summary
Notes
Chapter 4 Why Companies Raise Dividends
Buybacks versus Dividends
Management Speaks
Attracting the Right Shareholders
Signals to the Market
Summary
Notes
Chapter 5 Get Rich with Boring Dividend Stocks (Snooze Your Way to Millions)
How Much Do You Want to Make?
Summary
Note
Chapter 6 Get Higher Yields (and Maybe Some Tax Benefits)
Buying $1 in Assets for $0.90
MLPs
REITs
BDCs
You Don't Have to Play Mahjong with Mrs. Zuckerberg
Preferred Stocks
Summary
Chapter 7 What You Need to Know to Set Up a Portfolio
The Oxford Income Letter Portfolio—An Example
Setting Up the Portfolio
Yields
Payout Ratio
Dividend Growth Rate
Special Dividends
Summary
Note
Chapter 8 The 10–11–12 System
Yield
Dividend Growth
Payout Ratio
Formula
Numbers
When to Sell
Summary
Chapter 9 DRIPs and Direct Purchase Plans
Summary
Chapter 10 Using Options to Turbocharge Your Returns
Covered Calls: The Espresso of Income Investing
Option Prices
Volatility: An Option Seller's Best Friend
Time Is on Your Side
Who Should Sell Covered Calls?
20% Annual Returns
Selling Puts
Summary
Chapter 11 Foreign Stocks
One Lump or Two?
Lumpy Perpetual Dividend Raisers?
Other Risks
Summary
Chapter 12 Taxes
Foreign Taxes
Tax-Deferred Strategies
Tax Law Changes
Summary
Note
Conclusion: The End of the Book, the Beginning of Your Future
Glossary
About the Author
Acknowledgments
Index
End User License Agreement
List of Tables
Chapter 1
Table 1.1
Chapter 2
Table 2.1
Table 2.2
Table 2.3
Chapter 3
Table 3.1
Table 3.2
Table 3.3
Table 3.4
Chapter 4
Table 4.1
Chapter 5
Table 5.1
Table 5.2
Table 5.3
Table 5.4
Table 5.5
Table 5.6
Chapter 7
Table 7.1
Table 7.2
Table 7.3
Chapter 8
Table 8.1
Table 8.2
Table 8.3
Table 8.4
Table 8.5
Table 8.6
Table 8.7
Table 8.8
Table 8.9
Table 8.10
Table 8.11
Table 8.12
Table 8.13
Table 8.14
Chapter 9
Table 9.1
Chapter 11