Get Rich with Dividends
Module Units
- 1. Introduction
- 2. Why Dividend Stocks?
- 3. What Is A Perpetual Dividend Raiser?
- 4. Past Performance Is No Guarantee Of Future Results, But It’s Pretty Close
- 5. Why Companies Raise Dividends?
- 6. Get Rich With Boring Dividend Stocks
- 7. Get Higher Yields And Maybe Some Tax Benefits
- 8. What You Need To Know To Setup A Portfolio
- 9. The 10-11-12 System
- 10. DRIPs And Direct Purchase Plans
- 11. Using Options To Turbocharge Your Returns
- 12. Foreign Stocks
- 13. Taxes
- 14. Conclusion
Why Companies Raise Dividends?
Dividends represent a stronger commitment to shareholders than stock buybacks.
Stock buybacks can increase earnings per share (EPS) and is another way of increasing yield to investors, but can also be used to manipulate EPS figures.
Dividends are paid by firms with higher permanent operating cash flow, while repurchases are used by firms with higher temporary non-operating cash flow.
Abbott Laboratories (NYSE: ABT) paid a dividend every year since 1924 and raised it for 42 consecutive years.
Eaton Vance Corp (NYSE: EV) has increased its dividend every year since 1980.
An activist investor is an investor that owns 5% or more of a company’s outstanding shares and files as Schedule 13D form stating it wants to make changes in company management.
For an example of shareholder activism, see Dan Loeb’s letters to the Yahoo board of directors in 2011 demanding the resignation of co-founder Jerry Yang.
Serious dividend investors consider the safety of the dividend (the likelihood it will be paid) to be just as important as the yield percentage.
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Jeremy Silva
Jeremy Silva lives near San Francisco with his wife and son. He is a writer, blogger, and personal investor. He is passionate about education, personal development, project management, and investing. His blog has over 100 book summaries on many topics including investing, self-help, and business. You can click on the link to read some interesting book summaries on Jeremy’s website (https://jsilva.blog/book-summaries/).
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