The Dividend Growth Investment Strategy: How to Keep Your Retirement Income Doubling Every Five Years

by RoxAnn Klugman

Book Overview

In 1944 Anne Scheiber, a lifelong federal employee whose income never surpassed $3,150 a year--yes, the figure is correct!--invested $5,000 in blue-chip stocks. When she died in 1995 her stocks were... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 0806521821
• ISBN13: 9780806521824
• Release Date: January 2001
• Publisher: Citadel Press
• Length: 290 Pages
• Weight: 1.25 lbs.
• Dimensions: 1.1" x 6.4" x 9.3"

Customer Reviews

A simple but powerful strategy

I bought this book and 'Beating the S & P with Dividends' that cover the same topic. Rozann's presentation was much better in laying out the strategy and the concepts behind the strategy. The only drawback with the book is that the data on stocks listed in the book are a little dated. However, the strategy is the most important part of the book. You can always find up-to-date stock/company information on the Internet. It is a good fast read and I have applied the strategy to my IRA stock holdings. The 'Beating the S & P with Dividends' has more up-to-date company information and various stock lists with different focuses. I used the information for both books to make changes to my stock holdings.

A Good Strategy for Investing

This book introduces an excellent idea for investment. Basically, you should look for well-established companies with a good track record of dividend increases, invest, and wait 30 years. If you have less than 25 years until retirement, this stategy might not work so well for you because the real wealth development tends to kick in at around the 25 year mark and shoots up from there. If you have less time than that, then you'll only see a modest return on your investments. The author provides her pick of top performers historically. Of course this doesn't mean that these will continue to perform in the future. The only weak point of this book is that it is based on data from the tech bubble era of the late ninties. If you plan on taking the authors recommendations, be sure to do your homework and check up on the companies to see how they have weathered the years since the burst of the tech bubble. I would say about 75 percent of the recommendations are still good, while a few such as AIG may not be so smart right now. Just be sure to do your homework. It might be time for the author to give us an updated version of this book.

Insightful and thought provoking

I've been investing in stocks and reading investment books for 5 years. Ms. Klugman's book is definately one of the best I've read.She makes a very cogent arguement for this style of investing, which in a nutshell is:1. Dividend growth shields investors from emotional turmoil of having your investments sink in value, since these stocks tend to stand up well and also because of the dividend income stream. This is very important if you have a low threshold for financial panic.2. Dividend growth provides relatively small income streams at first, presumably when you don't need income (and when your taxes are highest), but it grows so that at retirement you will have a large annual income.3. Dividend growth strategy should have much higher returns than bonds, since your dividend income will grow, while bonds pay static returns.4. If you hold stocks in an IRA and just live off the dividends and pass the stocks to your heirs, it is a perfect tax shelter for transfering huge amounts of wealth, since all the capital gains on the stocks are not taxable when the stocks are inherited.Ms. Klugman does mention in passing that Dividend Growth is not necessarily the highest return strategy, and probably will not even keep pace with an index fund. However, Ms. Klugman makes a very compelling case for this style of investing. In addition, her observations about the Wall Street in general are insightful and make good reading.I have read over 20 books on investing. This is the among the few that I am still mulling it over 2 weeks after I finished reading it.

Good for part of your portfolio

This is a very good book especially for the faint of heart and those who shirk at aggressive growth stocks.In my opinion, this would be most useful as long as it represented part of your portfolio (especially for younger investors) I also agree with this author on bonds. They cannot compare with equities except in those rare times when interest rate are high and start coming down. Bonds are not a good long term strategy - but equities are.I am using this strategy along with agressive no load mutual funds. You can double your money every 4-5 years with mutual funds and save on the commissions. President Bush's new tax plan will make this dividend strategy program even more lucrative (as longas the Dmocrats don't screw it up)The dividend growth strategy is an excellent book and I highly recommend it along with the WSJ and IBD to research those dividend stocks.

What the personal finance industry doesn't want you to know

This strategy is what has made patient, long-term investors wealthy and has become the cornerstone of my investment plan. Very readable and insightful. Throw away all your other investing guides.