Get Rich with Dividends

The latest entry in the best-selling guide to dividend investing

In the newly revised third edition of Get Rich with Dividends: A Proven System for Earning Double-Digit Returns, bestselling author and investing strategist Marc Lichtenfeld delivers a proven and reliable guide to realizing substantial returns—without taking on undue risk—using dividends. You’ll learn to generate significant income with the author’s sensible and low risk 10-11-12 System.

In the book, the author demonstrates techniques that won’t require you to babysit each and every investment, freeing you up to enjoy more fulfilling pursuits as your nest egg and income streams grow steadily. You’ll also find:

• Proven techniques to generate 12% average annualized returns over the long term
• Ways to make dividends the cornerstone of your investment and income strategy
• Methods for reducing risk and increasing returns at the same time

An essential resource for retail investors everywhere, Get Rich with Dividends: A Proven System for Earning Double-Digit Returns also deserves a place on the bookshelves of anyone interested in the financial and stock markets, as well as readers with an interest in business.

Foreword by Alexander Green xiii

Preface xvii

Chapter 1 Why Dividend Stocks? 1

“Y’all Must’ve Forgot” 5

Marc Lichtenfeld’s Authentic Italian Trattoria 8

The Numbers 9

Keeping Up with Inflation 12

The 10-11-12 System 14

Summary 16

Notes 16

Chapter 2 What Is a Perpetual Dividend Raiser? 19

Dividend Aristocrats 20

The Index 21

The Champions 23

Junior Aristocrats 26

Survivorship 29

Summary 30

Chapter 3 Past Performance Is No Guarantee of Future Results, but It’s Pretty Darn Close 31

Performance of Perpetual Dividend Raisers 34

How Do Bonds Compare? 49

Are You an Investor from Lake Wobegon? 52

Summary 56

Notes 56

Chapter 4 Why Companies Raise Dividends 59

Buybacks versus Dividends 60

Management Speaks 65

Attracting the Right Shareholders 68

Signals to the Market 72

Summary 73

Notes 74

Chapter 5 Get Rich with Boring Dividend Stocks (Snooze Your Way to Millions) 75

How Much Do You Want to Make? 75

Summary 87

Note 87

Chapter 6 Get Higher Yields (and Maybe Some Tax Benefits) 89

Buying $1 in Assets for $0. 90 89

MLPs 98

REITs 100

BDCs 101

You Don’t Have to Play Mahjong with Mrs. Zuckerberg 103

Preferred Stocks 105

Summary 107

Chapter 7 What You Need to Know to Set Up a Portfolio 109

The Oxford Income Letter Portfolio An Example 111

Setting Up the Portfolio 115

Yields 118

Payout Ratio 121

Dividend Growth Rate 126

Special Dividends 128

Summary 131

Notes 131

Chapter 8 The 10-11-12 System 133

Yield 133

Dividend Growth 134

Payout Ratio 135

Formula 135

Numbers 147

When to Sell 156

Summary 158

Chapter 9 DRIPs and Direct Purchase Plans 159

Summary 163

Chapter 10 Using Options to Turbocharge Your Returns 165

Covered Calls: The Espresso of Income Investing 167

Option Prices 169

Volatility: An Option Seller’s Best Friend 170

Time Is on Your Side 171

Who Should Sell Covered Calls? 172

Annual Returns of 20% 173

Selling Puts 177

Summary 179

Chapter 11 Foreign Stocks 181

One Lump or Two? 182

Lumpy Perpetual Dividend Raisers? 184

Other Risks 186

Summary 188

Chapter 12 Taxes 189

Foreign Taxes 191

Tax-Deferred Strategies 192

Tax Law Changes 194

Summary 194

Note 195

Chapter 13 Crypto 197

Summary 200

Note 201

Conclusion: The End of the Book, the Beginning of Your Future 203

Glossary 207

Acknowledgments 211

About the Author 213

Index 215

MARC LICHTENFELD is the Chief Income Strategist of The Oxford Club. His writing has appeared in The Wall Street Journal, Barron’s, and U.S. News & World Report. He is also the bestselling author of previous editions of Get Rich with Dividends: A Proven System for Earning Double-Digit Returns.

Renewed volatility in the stock market has scared many people away from investing. This is a mistake. Not investing eliminates the possibility of earning significant income from proven and sound investing strategies.

In the newly revised Third Edition of Get Rich with Dividends: A Proven System for Earning Double-Digit Returns, renowned investing strategist Marc Lichtenfeld delivers a comprehensive and up-to-date guide to dividend investing that demonstrates how to achieve double-digit returns. In the book, you’ll discover why dividends present an unmatched opportunity to realize substantial returns using sensible and safer investing techniques.

The author explains how to embark on a strategy that won’t require you to constantly watch over each of your investments, freeing up your time to focus on other, more fulfilling activities while remaining secure in the knowledge that your system is working and that you’re accumulating wealth and generating income. He introduces his proprietary 10-11-12 System, showing you how to achieve average annual returns of 12% or more, even in conditions that include below-average growth in the stocks’ share prices.

Lichtenfeld draws on over 25 years of experience in the equity markets to share with you an investing strategy so simple you’ll want to immediately teach your children how to replicate it, setting them up for financial independence and security.

An indispensable resource for investors, Get Rich with Dividends will earn a place in the libraries of anyone interested in the stock and financial markets and general business readers.

Praise for GET RICH WITH DIVIDENDS

“Americans need financial independence. The government isn’t going to get you there. In fact, it will be an obstacle to your comfortable retirement. Dividends are a perfect way to combat the threat of higher taxes and inflation. Not only is my friend Marc Lichtenfeld’s book Get Rich with Dividends a great read, it’s also one you should absolutely share with your family members, especially younger ones. This is the type of financial education you just don’t get in school.”
—Larry Kudlow, Host of Kudlow on Fox Business Network

“Marc Lichtenfeld has done a superb job. Easy-to-read. Makes sense. I was a skeptic. Now I see how this strategy can really pay off.”
—William Bonner, New York Times bestselling author of Financial Reckoning Day, The New Empire of Debt, and Hormegeddon

“Most investors know the critical role dividends play in generating long-term returns. Marc Lichtenfeld takes a big step beyond the conventional chatter about dividends to provide investors with comprehensive strategies to help them choose the right dividend-paying stocks. In a low/no-yield world, this is a very useful tool.”
—Aaron Task, Former Editor-in-Chief, Yahoo! Finance

“If you’re looking for growth, invest in dividend stocks. If you’re looking for income, invest in dividend stocks. If you’re looking to reduce your risk, invest in dividend stocks. And to learn exactly how to build your fortune safely and securely invest in this book. It’s a classic.”
—Alexander Green, bestselling author of The Gone Fishin’ Portfolio, The Secret of Shelter Island: Money and What Matters, and Beyond Wealth

“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, Retirement Editor, InvestmentNews