The Dividend Toolkit is a new investment book offered by Dividend Monk (DM). I rely on Dividend Monk as a quality source of evaluating dividend stocks and was very interested in reading his new book. This book consolidates his investing analysis and tools into one place. The new book was provided to this author for evaluation.
The Dividend Toolkit is a guide on dividend investing. The book makes is easy for you to understand and approach dividend investing. It is setup in chapters that are readable on their own just in case you want to skip around.
The book itself has two sections and a supplemental spreadsheet that puts a discount valuation model into practice. The spreadsheet can be used to value stocks in a couple of different ways using stock financials plus your own inputs.
There is a push by investment brokers to become your full service bank. Brokers want
to become your bank for the same reason banks do: to get a lock on your direct deposit
income and investment money. In this article I will talk about banking, plus a few brokers
that are going to great lengths to become your bank.
When I first started to utilize direct deposit at a credit union, it was natural to use that
account for investments such as CDs or money market accounts. Once you are a member
of your bank or credit union, it takes very little effort to open other accounts.
One of the easiest ways to pick individual investments (as opposed to diversified mutual funds, ETFs, or index funds) is to invest in addiction. Addiction is a strong word that correctly applies to certain situations but I would expand this investing style to include other kinds of products and services that are bought and used consistently. These investments can be categorized using the following descriptions:
1. Addictive – products or services that really create a chemical dependency, such as tobacco or alcohol.
The traditional world of investing is kind of boring. Unfortunately, the more boring you are the greater the likelihood that you will succeed at investing. The fact remains that if you buy good companies and wait around watching corn grow you will more likely be successful.
Just look around. Everything that’s happened the past 5 years, and I can still rattle off great companies that continue to perform well and the market demonstrates that success with higher pricing. If you simply went away and hibernated for 5 years, you would have missed all the drama and would have been better off for it.
But, and there is a but here, you need stimulus to keep everything interesting. New tools and software have arrived that can make investing better, more social and even fun. One of the ways I kept investing interesting was investing small amounts of money in many different stocks. These positions were really too small to make any serious dent in my portfolio but it was fun. This activity was quashed after Zecco eliminated the monthly free trades.
The past ten to fifteen years we have seen multiple corrections and bear markets. If you allow the market gyrations to change your behavior based upon emotion rather than logic you will be more likely to lose money.
The key to getting control of your emotions is to look at what’s really going on in individual stocks and ignore the chatter and noise of the market that goes on each day.
This is hard to do sometimes, I’ve noticed that I sometimes get too worked up about this noise only to miss the mid to longer term trends that are going on in companies that I own or might want to own.