The Dividend Investor By Rodney Hobson A book review by Aaron Padgham of t1ps.com The Dividend Investor costs just £15.29 in the Square Mile Bookstore and can be bought by clicking here. An equity investment usually offers two types of return, capital gain from the upward movement of a share price and income gain from a profit share, the dividend. The latter can be a valuable income stream for anymore, particularly in the current climate which has been characterised by record low interest rates. Rodney Hobson's 'The Dividend Investor' is the ultimate guide to maximising income through equity investments, guiding those who have grasped the basics of investing but are unsure on how to build a portfolio that produces a rising income stream.
Robson, a financial journalist who has previously been editor of Shares magazine, and websites Citywire and Hemscott, not to mention author of 'How to Build a Share Portfolio' and 'Small Companies; Big Profit', introduces readers to the idea of the income play by providing a startling statistic. If you had invested £1,000 into the Barclays Equity Gilts Study in 1945 it would have been worth £57,210 by the end of 2009, but if you had reinvested the dividends from the fund your pot would now be worth a massive £924,600.
After covering the basics of the different types of dividend, how often they are paid and how to get access to historic data, Robson moves onto the crucial part, dividend analysis. As he explains, created a sound income from a portfolio of shares is all about selecting the right companies. This can be done from analysis company accounts, looking at cash flow and dividend coverage. This is built upon by how to identify sectors which have historically offered attractive yields, the advantages of income funds and when to admit its time to sell and move your funds elsewhere. To conclude, this book offers everything that an investor could possibly need to know about the dividend side to an investment, and thus if you're looking to alter your investment strategy or at least tweak it to provide a regular income stream, then this book is ideal. The Dividend Investor costs just £15.29 in the Square Mile Bookstore and can be bought by clicking here. Visit www.SquareMileBookstore.com for the ultimate range of investment, trading and business books, personally selected by investment experts, with exclusive free reviews from some of the UK's foremost investment writers. | |
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