I generally dislike e-books, I often find that they are terrible reproductions of blogs adding no real value, however, when my buddy Mike from TheFinancialBlogger told me he was creating an e-book on Dividend Investing I was actually excited to check it out.
As usual, Mike offers something above and beyond the norm in his e-book for beginner to intermediate Dividend Investing. If you were thinking about building a dividend portfolio like my perpetual income machine you should absolutely check out this free e-book.
The e-book is broken down into 4 easy to digest chapters:
- Chapter #1 – Goes through the basics of investing (i.e. What is a Dividend? What is Risk tolerance? etc). This first chapter should be read by anyone that is thinking about investing in individual stocks.
- Chapter #2 – Provides metrics you should look into when finding appropriate dividend stocks. Mike even checks out my favorite lists including Dividend Aristocrats, Achievers and Champions.
- Chapter #3 – 6 Question and Answers. I actually didn’t really like this chapter that much. With the amount of amazing material in the first two chapters this seemed a bit superfluous.
- Chapter # 4 – Provides 4 pages of amazing resources including blogs that I love and tools for technical analysis.
Throughout the entire e-book Mike provides a chance for the reader to stop just reading about dividend investing and get to work:
Mike numbers 8 actionable steps but I think there are more than that, if you read closely. When asked when you should start? Mike has a great answer,
Simply put, if you don’t do it now, you will never do it. From my job I know that procrastination is the biggest reason why people are not taking care of their finances. Unfortunately, making a budget and paying down your debts often take priority over investing. I am a firm believer that investing should come first. If you don’t start investing now, in the long run you will lose some serious money.
In fact, investing returns work based on a principle named “compounding interest.” We will cover this topic later on in this book. But to make sure you understand, I’ll just use the snowball analogy.
When you start rolling snow, you’ll eventually form a snowball. If you continue to roll the ball into more snow, the ball will slowly grow. The bigger the ball is, the more snow will stick to it, and the faster your ball will grow. So, the sooner you start your ball rolling, the bigger your snowball will be at retirement. Just imagine how big your snowball would be if you start rolling it at the age of 25 and stop at 65? You would create a freakin’ snow mountain out of your originally small snowball.
Compounding interest works the same way; the sooner you start investing, the bigger your investment egg-nest will become over time. A 5 year difference in the starting date of your investment plan creates a phenomenal difference at the age of retirement.
I was not paid for this post, just one blogger’s opinion about a topic I love, Dividend Investing.