Everybody is talking about dividend stocks these days. Thousands of people turned from other forms of investing to a dividend portfolio and many even dream of living off their dividend income. The bad news is: most of them will not make it. Not because the strategy is bad, nor is it likely that the big dividend paying companies go bankrupted or the economy crashes in a way it will totally destroy the value of these stocks – nothing like that has happened in the past 50 years, and so I ume it will not happen in the next 20 years either. But the reasons why 99% of the dividend dreamers will fail are far simpler – it’s the details many investors do not think about or decline to accept. I will give you the 10 reasons why most people will not be able to live off their dividend income in the following eBook. I will also introduce strategies and mitigation actions that can be set up to maximize the probability that some clever investors will make it to their ultimate goal anyway.
Cashing dividends is popular these days: interest rates are on all-time-lows (and will probably remain there for a few more years), the bond market might be on its way to the next big bubble and shares have been skyrocketing in the last months, not leaving much room for a "normal" investor to become the next millionaire with capital gains. It might be these cirstances that promote an old and extremely promising investing strategy again – the constant collection of dividends from companies that proved to
In the course of the last few years, we suddenly see all kind of people switching to this old and “proven” investment strategy. More and more bloggers are doenting their “journeys to financial freedom” by writing and promoting their dividend strategies; the audience that listens enthusiastically to these journeys has grown huge. One would think that even with the tiniest income, everyone could live off their dividends in some years, if they only show consistency and endurance and live a frugal life until they have reached their goals.
The Dividend Strategy in my personal opinion is indeed a real solid and defensive strategy, which I follow on my own. The “Lie,” or the illusion consists of the fact that most people even after years of frugal living and extreme investing will NOT be able to live on their dividend income. There are various reasons which make this goal extremely hard to reach, and even with high income and an “iron will” there are hurdles to be cleared, which you probably didn’t even think of.
Don’t get me wrong – it’s not impossible to earn an amount of dividends so high that it will cover your living expenses. But it takes more than just buying some Coca-Cola and Johnson & Johnson shares month after month. In my opinion less than 1% of all success-seeking bloggers and “dividend-investors” out there will achieve their goal to make a living of receiving dividend checks only. Why? Because of…
In the eBook “The Dividend Lie” I will not only reveal 10 reasons why you probably will never be able to live off your dividend income, but I will spend one chapter for each reasons to explain why and what can be done in order to maximize your chances to make it anyway. Even if for the first 2 or 3 reasons you will think, “I know that, and I know how to handle that” I am pretty sure that you haven’t thought of all of them. To be precise and to make sure you understand: even if 9 out of 10 reasons do not apply to you or you do have strategies in place to tackle them, even 1 out of 10 failures can break your dream.
In “The Dividend Lie” I use sample calculations and real-life examples to illustrate my thinking. I use figures and examples (e.g. related to income, monthly investment amounts) and investments types (e.g. Dividend Aristocrats, High Yielders, REITs, MLPS, etc.) everyone should be able to relate to.
When downloading the eBook I will give you for FREE all spreadsheets I used to demonstrate my examples. The spreadsheets are in EXCEL format and driven by input parameters. They allow you to play around with your OWN personalized figures (e.g. monthly investment amount, capital gain growth percentage by year, inflation umptions, etc..). These tools will enable you to better understand your personal situation and to better justify where you are and where your strategy will lead you.
If one of the above applies to you, I highly encourage you to download and read the eBook “The Dividend Lie.” In the worst case you spend (a dividend payment) of $40 USD for a useless paper, but I guarantee you won’t find it useless. I will open your eyes to what you refuse to see until now, and it will make you think about it. Plan for it. I will outline strategies and mitigation actions you can implement TODAY in order to NOT step in one of the many traps that are spread on the bloody path to financial freedom.
The eBook will NOT explain the various details on any of those terms; you are expected to know the basics already. In case you belong to the group of people not knowing thisic, I highly recommend that you work yourself through some basic material (e.g. Blogs, Books, etc).
Many people start with their dividend investment strategy buying companies who paid a lot of dividends in the last 50 years. They start to receive payment checks of $50, $100 or even $500 or $1000 per month. It is natural that people start to think, "If I can get $1,000 in a single month on a regular basis, I am not far away from financial independence." But believe me, they’re far off, at least in 99… Read more…