You are previewing The Dividend Investor: A practical guide to building a share portfolio designed to maximise income.
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The Dividend Investor: A practical guide to building a share portfolio designed to maximise income

Book Description

Rodney Hobson, author of bestseller Shares Made Simple, is back with a brand new book designed to help you build a balanced share portfolio that provides dividend income, whether you're just starting out or ready to retire. Dividends - the distribution of part of a company's earnings to shareholders, usually twice a year - can be a valuable income stream for anyone. Designed for longevity but particularly pertinent in times of low interest rates, The Dividend Investor is packed with real-life examples and analysis of how to gain such added income through reliable shares with healthy dividends. Topics made simple with Hobson's classic style include: ratios, yield, dividend cover, the dividend payout ratio, total return, cash flow, burn rate, gearing or leverage, interest cover, earnings per share and the price/earnings ratio. Plus the advantages and disadvantages of shareholder perks. If you're looking to make the most from your investments, then this book is for you.

Table of Contents

  1. Cover
  2. Publishing details
  3. Disclaimer
  4. About the Author
  5. Preface
    1. Who this book is for
    2. What this book covers
    3. How this book is structured
    4. Supporting website
    5. Acknowledgements
  6. Introduction
    1. Why dividends?
  7. Part A. Dividend Basics
    1. Chapter 1. Companies and Dividends
      1. The purpose of companies – to pay dividends
      2. Cash is king
      3. Dividends can grow even in hard times
      4. Spreading investments without increasing risk
      5. How is the size of dividend decided?
      6. Different types of dividends
      7. Key points
    2. Chapter 2. The Dividend Timetable
      1. Payment frequency
      2. When you get paid
      3. Timing your income
      4. Key points
    3. Chapter 3. Where to Find Information
      1. Company news
      2. Company websites
      3. Full, fast and long-lasting information
      4. London Stock Exchange
      5. Financial websites
      6. Stockbrokers
      7. Newspapers
      8. Magazines
      9. Summary
      10. Key points
    4. Chapter 4. Results Announcements and Annual Reports
      1. Key points
    5. Chapter 5. Tax
      1. 1. Stamp duty
      2. 2. Income tax
      3. 3. Capital gains tax
      4. ISAs
      5. Key points
    6. Chapter 6. A Year in the Life of a Dividend Paying Company
      1. 2010
      2. 2011
      3. Key points
  8. Part B. Dividend Analysis
    1. Chapter 7. Profits, Dividends and Cash Flow
      1. 1. Profits
      2. 2. Dividends
      3. 3. Cash flow
      4. Key points
    2. Chapter 8. Progressive Dividends
      1. Checking the history of dividends
      2. Key points
    3. Chapter 9. Dividend Yield
      1. A problem of comparing dividends
      2. Calculating the dividend yield
      3. Two types of dividend yield
      4. Key points
    4. Chapter 10. Other Key Ratios
      1. 1. Earnings per share
      2. 2. Price/earnings ratio
      3. 3. Dividend cover
      4. 4. Gearing (also referred to as leverage)
      5. 5. Interest cover
      6. 6. Cash flow
      7. 7. Total return
      8. Key points
  9. Part C. Investing Tactics
    1. Chapter 11. Picking Sectors
      1. Cyclicals v Defensives
      2. Dividend data by sector
      3. Visibility of earnings
      4. Lumpy earnings
      5. Insurance
      6. Key points
    2. Chapter 12. Dividends by Index
      1. Indices
      2. Observations
      3. Key points
    3. Chapter 13. Share Buybacks
      1. Fashions change
      2. Cash is better than debt
      3. Ones to avoid
      4. Key points
    4. Chapter 14. Flotations
      1. Where the cash goes to the company
      2. Key points
    5. Chapter 15. Turning Companies Round
      1. The concerns for dividend investors
      2. Restoring dividends
      3. Key points
    6. Chapter 16. Rights Issues and Placings
      1. Placings
      2. Claw backs
      3. Key points
    7. Chapter 17. Takeovers
      1. You must face reality
      2. When the bid goes unconditional
      3. Key points
    8. Chapter 18. Ethical Investing
      1. Why ‘unethical’ shares may be cheap
      2. Green companies
      3. Key points
    9. Chapter 19. Company Perks
      1. Wide range of goodies
      2. Advantages of perks
      3. Perks overview
      4. Key points
    10. Chapter 20. International Investing
      1. 1. UK companies
      2. 2. Foreign companies listed here
      3. 3. Overseas exchanges
  10. Part D. Building a Dividend Portfolio
    1. Chapter 21. Spotting Buying Opportunities
      1. Buying rumours
      2. Buying on dips
      3. Key points
    2. Chapter 22. Building a Portfolio Using Stock Filters
      1. Online stock screens
      2. Key points
    3. Chapter 23. Dogs Might Fly
      1. Key points
    4. Chapter 24. Income Funds
      1. Two types of fund
      2. Advantages and disadvantages of funds
      3. Where to get information
      4. Income or growth?
      5. Funds offer variety
      6. Key points
    5. Chapter 25. When to Sell
      1. Gloomy trading statements
      2. Profit warnings
      3. Stop losses
      4. Key points
    6. Chapter 26. A Dividend Nightmare – BP
      1. Why private investors were at an advantage
      2. The explosion
      3. Why the dividend had to go
      4. The dangers of buying back in
      5. Why you should fear the worst
      6. How one piece of bad news leads to another
      7. Key points
    7. Chapter 27. Ten Dividend Rules
  11. APPENDIX. Dividend Data for FTSE 350 Companies
  12. Great savings on Rodney Hobson’s other books
    1. How to Build a Share Portfolio
    2. Understanding Company News
    3. Shares Made Simple
    4. Small Companies Big Profits