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Get Rich With Dividends Book Review

Dividend stocks can provide a way to create an income stream. Get Rich With Dividends : A Proven System For Earning Double-Digit Returns by Marc Lichtenfeld lays out a system to create increasing dividend income streams. The author believes that with careful stock selection you can successfully replace your paycheck with income from your portfolio in the future.

The author has a system called 10-11-12. This refers to the criteria and results for picking the dividend-paying stocks. One of the main criteria is to look for stocks that have increased their dividend payouts by ten percent a year, every year. Quite frankly, I'm not convinced you can count on companies to increase their dividends by this much every year. Rarely does anything progress so smoothly when dealing with investing.

The author's system also aims for higher paying dividends initially. He aims for a dividend yield of 4.7 % or higher to be ahead of inflation. Inflation has historically averaged 3%- 3.5% a year. This may be possible, but I doubt that you can construct a portfolio of enough stocks to accomplish this without taking on more risk. Too high a dividend can often be an indication of future problems with a company.

The book could have been improved if the author had included more details of how his portfolio performed. As it is, the system feels like a good theory but not easy to put in practice. Plus, the book lacks enough advice for when to sell your stocks.

One thing I did like about Get Rich With Dividends is that it emphasized the benefits of compounding returns. Reinvesting dividends will increase your income stream overtime. This can add up to a nice replacement for work income.

Another thing I found informative is how a bear market can be a positive for a dividend portfolio. You can buy more shares of stock with your reinvested dividends as the share price drops in a bear market. Of course, your portfolio will decrease in value. However, your portfolio will rebound higher when the share price increases. This is because you will have more shares from reinvesting at a lower price.

Investing in dividend-paying stocks is a good, reliable, and safe investing strategy. It is a good strategy whether you are building wealth or seeking income in retirement. However, in my opinion, there are better books than Get Rich With Dividends for learning to invest in dividend-paying stocks.

I borrowed this book from my local library to do this review.

Should you be interested in reading Get Rich With Dividends, it is available at Amazon.com:

Get Rich with Dividends: A Proven System for Earning Double-Digit Returns (Agora Series)

Kindle Edition:

Get Rich with Dividends: A Proven System for Earning Double-Digit Returns (Agora Series)

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