| SENSIBLESTOCKS .COM |
| Dedicated to the success of the individual investor |
Dear Fellow Investor,
Whether your goal is long-term wealth accumulation or income to use right now,
dividend growth stocks can help you reach your goal.
Dividend growth companies pay a reasonable yield and raise their dividends every
year. These enterprises are consistently profitable, grow their earnings through thick and
thin, and operate with the best business models. There are only a few hundred such
companies in the world. And best of all, they share the fruits of their success with
their shareholders on a regular basis: They not only pay but also raise their
dividends every year. Depending on where you are in life, you can reinvest these
dividends to speed up your accumulation of wealth, or take them as rising income that
stays ahead of inflation.
My eBook, TOP 40 DIVIDEND-GROWTH STOCKS FOR 2012: How to Create and
Maintain a Dividend Growth Portfolio, shows you how to build your own perpetual
cash machine of increasing dividends. It presents an exclusive list and exhaustive
analysis of 40 great dividend growth stocks for 2012, plus a complete guide on how to
build and maintain your dividend stock portfolio.
The dividend growth strategy allows you to own and partner with your companies. You
share in their successes rather than trade them like baseball cards. TOP 40 DIVIDEND
STOCKS FOR 2012 is the best how-to-do-it guide for dividend growth investing. It
presents a straightforward sensible method for picking great dividend stocks, valuing
them to find fair prices, and managing your portfolio.
Whether your objective is to accumulate wealth over a long period of time or to
create a reliable inflation-beating income stream, the dividend growth strategy
can work for you. Following my step-by-step method, you can start creating a new
dividend growth portfolio immediately or re-tool a portfolio you already have.
This message is meant to be quiet, sensible, and informative. It is for adults who are
serious about stock investing. It is for self-directed individuals who want to be true
investors in superior businesses, purchase stocks at attractive valuations, manage
their portfolios intelligently, and collect a fair share of the profits of the companies they
invest in.
Keep reading to find out…
1. Why Dividend Stocks are Good for Long-Term Wealth Building
2. Why Dividend Stocks are Good for Immediate Income
3. Whether Dividend Stocks Are Safe
4. What Are The 40 Best Dividend Stocks for 2012?
5. Why Is the Step-by-Step Investment Guide Important?
6. Features, Benefits, and Distinctions from Competitors
7. How to Purchase
**********
1. Why Dividend Stocks are Good for Long-Term Wealth Building
From a long-term perspective, the most profitable stocks are dividend stocks.
The stocks with the best total returns are not the headline-grabbing high-growth, high-
priced, “latest great thing” issues. They are not hot technology stocks. The champions in
the best-total-returns game are dividend-paying and dividend-raising stocks.
Look at this fascinating graph from Ned Davis Research:
Please notice that the total return from dividend-raising stocks (top line) far exceeds
the return from non-dividend-paying stocks. The performance gap widens steadily over
time in up and down markets.
Even during the high-flying bull market of 1982-2000, when so much total return came
from price increases, dividend stocks outperformed non-dividend stocks. The same
thing happened in the market recovery from 2003-2007.
Studies show that dividends have accounted for nearly half of the total return of
the stock market over very long terms. That may surprise you, considering how little
publicity dividends get compared to stock prices. There is no widely reported dividend
index that gets the coverage given every day to the Dow, the S&P 500, and the
NASDAQ indexes.
But those indexes show price changes only. (The chart above reflects total returns, not
just price changes.) Thus, traditional indexes give a very incomplete picture of "how
stocks are doing." No wonder dividends pass unnoticed. But the fact is, hundreds of
billions of dollars are distributed every year by dividend-paying companies. In
2011, more than $240 Billion was distributed by S&P 500 companies alone, an
increase of almost 17 percent over 2010. In 2012, all estimates are that the total
distribution of dividends will increase, as they have in every year (except 2009) for
decades.
Common misconceptions are that dividend stocks are--
These notions are all incorrect. Dividend-paying stocks are attractive as a core
investment for anybody, of any age.
Are you in the “wealth accumulation” stage of your life? That would be basically
everybody short of retirement. You have immediate financial needs: Day-to-day pocket
money, groceries, gasoline, mortgage and car payments, and raising your kids. Beyond
that, your predominant investment goal is to accumulate enough to retire. Under the
dividend growth approach, you reinvest dividends to build wealth. The following chart
shows the impact of reinvesting dividends.
What causes the big difference between the two bars in the chart? Re-investing
dividends brings the miracle of compounding into play. You create a virtuous
circle: Re-invest dividends >> More shares owned >> More dividends to re-invest >> etc.
The dividend growth strategy is not about guaranteeing that you will build a fortune--no
one can control the market value of their portfolio. But the strategy does tilt the odds in
your favor that your total wealth will rise over time, and it does insure that you are
collecting what I call "dividend rights" along the way. The value of those rights increases
over time. It is these dividend rights that will put you in good stead when you hit
retirement age and need inflation-beating income.
**********
2. Why Dividend Stocks Are Good for Immediate Income
Maybe you are already retired. The benefit of dividend stocks is pretty obvious:
They provide income. You do not have to sell the stock to get the dividend. It is
simply sent to you or credited to your account. You don't have to touch your principal.
You can do anything you like with your dividends. Those dollars are not "trapped" inside
the stock's share price. The dividends are distributed directly to you.
If you are a retiree, you can spend the dollars as month-to-month income. This is where
you reap the benefits of intelligent wealth-building during your accumulation years.
My studies show that many retirees want to have both income and a growing nest egg.
Dividends make this possible. You can re-invest some and spend the rest. And, of
course, because dividend stocks are stocks, chances are good that they will generate
price appreciation over time, even without re-investing the dividends.
In the bear market of 2007-2009, many stocks got devastated. But the best dividend
stocks held up better than most. When the bull rally began in March, 2009, dividend
stocks generally rose right back up with the market, even outperforming it when you
include the dividends. And here's the great thing: Most of the best dividend
growth stocks never stopped raising their dividends straight through the
financial crisis and market crash of 2007-2009. Did you know that more than 400
companies kept raising their dividends right through the Great Recession?
That leads us to probably the best benefit of dividend-growth stocks as an income
source. Unlike your pension, fixed annuity, CD, or bond, your dividend income
will grow each year. Stocks with rising dividends are the only ones that appear in the
Top 40. Few bonds increase their payout each year, and neither does your CD or fixed
annuity.
When you retire, you want to have plenty to live on, and you also want to keep
your nest egg safe. These two goals--income and safety--are paramount. If you are
retired, you must figure that you may be in this stage 30 years or more—as long or
longer than you were in the workforce. Besides looking after your own needs and not
outliving your money, you may wish to help your kids buy their first house, be generous
with your grandchildren, or perhaps leave a legacy. That's why income and safety
become so important: Income to live on, safety to keep the golden goose alive.
**********
3. Are Dividend Stocks Safe?
Relative safety is the third benefit of dividend stocks. The champions of the safety game
are dividend-paying stocks.
There are three aspects to investment risk: (1) actual loss of wealth; (2) risk to the
income; and (3) loss of purchasing power to inflation.
Well-selected dividend stocks are low-risk on all three scales.
First, risk of actual loss. Remember what we saw in the graph earlier: Dividend-paying
companies held up much better than non-dividend-payers during hard times in the stock
market. During the fierce bear market of 2007-2009, they held up better and recovered
sooner. This is not surprising. The best dividend-paying companies are mature,
solid, well established, and reliable businesses. Many are wondrous cash
machines, in perpetually successful businesses. They pull in enough money every year
to pay a healthy dividend and still have enough left to grow the business too. They suffer
less during bear markets. In fact, many strengthen their competitive positions during
recessions as shakier competitors falter.
Of course, all stocks are vulnerable to market risk. Historically, dividend-paying stocks
have been less vulnerable than others. In addition, Dividend Growth Investors (as I call
them) become less concerned with the market value of their securities, because they
have purchased the right to receive the dividend payouts. Their focus is on the
dividend. The fact that the price of those securities keeps fluctuating becomes less
important so long as the dividends keep coming.
Second, risk to the dividend. The best dividend companies cut their dividends
seldom and raise them often. Their dividend practices tend to persist, being
tantamount to company policy. They will go to great lengths not to deviate from the
dividend pattern they have established. Stocks with a history of increasing their
dividends and the financial wherewithal to keep doing it are the only kind you will find in
the Top 40.
And finally, risk to purchasing power. This is the hidden risk, the thief that robs us all:
Inflation. You don’t get a monthly bill in your mailbox for inflation. But it is hidden in the
prices you pay for everything, driving up your cost of living. And this is where dividend
stocks really shine.
Well-chosen dividend stocks can be as safe as bonds. In fact, over long time
periods, it can be argued that they are safer, because their income keeps ahead
of inflation via dividend growth. There’s a reason that bonds are called “fixed
income” investments—their yield never rises and neither does their face value.
Do you think the prices of gas or groceries are fixed? Of course not. That's why bonds
can't keep pace. But dividend-paying stocks do keep up with inflation. The dividends
from well-chosen dividend stocks grow faster than inflation. Five percent, eight
percent, or 10 percent annual growth in dividends is not at all unusual. The average
dividend increase for the 40 stocks on 2011's Top 40 list was more than six percent.
Ten of the stocks increased their dividends by 15 percent of more.
**********
4. What Are The 40 Best Dividend Growth Stocks for 2012?
Let me give you a few insights into the Top 40 Dividend-Growth Stocks themselves.
The Top 40 were selected through a rigorous process that I use every year. I first run an
initial universe of about 500 stocks through several threshold screens to get the
candidates down to a manageable number. Then, I use my Easy-Rate™ scoring
system to identify the best dividend growth stocks. The system looks first at the
company's quality, with a focus on its business model, financial strength, and dividend
record. These evaluations make it easy to see if a company is an excellent one or an
also-ran.
After identifying the best companies, I score the stock’s valuation. That means looking
for the best bargains. The entire system is methodical, understandable, and emotionless.
The best dividend growth stocks make it to the Top 40. They are presented in four
tables so you can find them easily: (1) alphabetically, (2) by total score, (3) by company
quality score, and (4) by current dividend yield.
In order to achieve the growth and income benefits described earlier, you need to buy
stocks with good dividend growth rates. The Easy-Rate system puts great emphasis
on growth, so a natural result is that the Top 40 list is dominated by stocks with
a lengthy history of annual dividend increases. It is those growing dividends that
allow you to accelerate total wealth accumulation (if you are reinvesting dividends) or to
receive a rising income (if you are harvesting).
My multi-faceted approach invariably leads to the elimination of many of the highest-
yielding stocks--those with yields of 15-20 percent or more. The problem with most of
the highest-yielding stocks is that their yields are not sustainable. They are
based on things like current unique economic cycles, bubbles, extreme price drops in
the stocks themselves, and other impermanent conditions. You’d have to trade in and
out of such stocks to make them work. That goes against one of the goals of Dividend
Growth Investing, which is that stock turnover should be relatively infrequent. In my own
investing, I make few buys and sells beyond the happy task of reinvesting dividends.
Here is a small sample of the companies that made the grade to land in the Top 40:
The book includes completed Easy-Rate Scoresheets for each of the 40 winners, one
page per stock. This compilation of the best dividend growth stocks is available
nowhere else.
**********
5. Why Is the Step-by-Step Guide Important?
Four chapters in the text comprise a complete how-to-do-it guide. The eBook
presents dividend growth investing in logical steps that build a stairway to understanding
and action.
Dividend growth investing is not about flash and show. It’s about substance and
participating in the success of your companies over long time periods. The text contains
two chapters about identifying the best dividend growth companies, a chapter on valuing
them, and another chapter on managing your portfolio.
Other chapters build the case for dividend growth investing, describe the Easy-Rate
approach, and explain how to create and manage a dividend growth portfolio using the
Top 40 as your starting point.
The text follows the mission of SensibleStocks.com: To help self-directed individual
investors with fact-based, practical, actionable information that they can use to profit in
the stock market.
I write for the individual investor. The levels of comprehensiveness and quality are
high, but everything is in plain English and presented in a pleasing format. The
methodology is totally transparent, and there is nothing that is not fact-based or that you
cannot verify yourself.
The text is non-hyperbolic, educational, and accessible. There are no “Secrets of the
Wall Street Gurus,” “Six Things Wall Street Doesn’t Want You to Know,” or “How to Get
Gains of 1716.8% in Six Months.” Those approaches appeal to some people, but not to
me, and I don’t think to you.
I am excited about dividend-growth investing. Using this eBook as my guide, I have
converted a significant portion of my family's own nest egg over to dividend growth
stocks, in addition to the real-money Dividend Growth Portfolio tracked on this Web site
that I use to demonstrate dividend growth investing in action.
As stated earlier, I think that dividend-paying stocks are an ideal investment for most
individual investors—about the only exception being someone who is looking for fast
hyper-growth. That is unlikely with dividend stocks. Of course, neither is fast hyper-loss.
Owning dividend stocks is exciting, rewarding, and fun. Jump in the pool, the water’s fine.
**********
6. Features, Benefits, and Distinctions from Competitors
Here are the most important features and benefits of TOP 40 DIVIDEND GROWTH
STOCKS FOR 2012:
**********
7. How to Purchase
1. Click any of the “Buy Now” buttons located on this page. The price is $40...a buck a
stock, plus you get the complete text, step-by-step guide, and filled-out Easy-Rate
Scoresheets for each stock.
2. Payment is securely handled through PayPal. You do not need a PayPal account—
they accept major credit cards in the usual fashion.
3. After payment is confirmed, you will receive a “Thank You” email from me. In it, you
will find a clear link to the document you have purchased.
4. Use the link to access the pdf document (eBook). Access is instantaneous.
Download the document to your own computer or iPad. While the material is
copyrighted, there are no annoying restrictions on printing or any other use of the e-book
you have purchased. You own it.
It’s as easy as that. Within a few minutes, you will have your own copy of the
TOP 40 DIVIDEND GROWTH STOCKS FOR 2012: How to Create and Maintain a
Dividend Growth Portfolio.
Best Wishes for Your Investing Success,
Dave Van Knapp
PS: I am really excited about dividend investing. In fact in 2011, I abandoned my Timing
Outlook and other activities based on capital-gains strategies, and I moved the money
into the dividend growth strategy. That means that a large percentage of my wife's and
my personal nest egg is now invested using dividend growth principles. I have come to
understand that if I get the dividend growth part of my investing right, the portfolio value
will take care of itself. I sincerely believe that for the average individual investor, this is
the best form of stock investing for the long haul. And that includes me.
This Special Study is not sold in bookstores. It’s easy to order online. Just click on one
of the "Buy Now" buttons on this page. You will get the TOP 40 DIVIDEND-GROWTH
STOCKS FOR 2011 in minutes. The download to your computer is instantaneous once
payment is completed.
Whether your goal is long-term wealth accumulation or income to use right now,
dividend growth stocks can help you reach your goal.
Dividend growth companies pay a reasonable yield and raise their dividends every
year. These enterprises are consistently profitable, grow their earnings through thick and
thin, and operate with the best business models. There are only a few hundred such
companies in the world. And best of all, they share the fruits of their success with
their shareholders on a regular basis: They not only pay but also raise their
dividends every year. Depending on where you are in life, you can reinvest these
dividends to speed up your accumulation of wealth, or take them as rising income that
stays ahead of inflation.
My eBook, TOP 40 DIVIDEND-GROWTH STOCKS FOR 2012: How to Create and
Maintain a Dividend Growth Portfolio, shows you how to build your own perpetual
cash machine of increasing dividends. It presents an exclusive list and exhaustive
analysis of 40 great dividend growth stocks for 2012, plus a complete guide on how to
build and maintain your dividend stock portfolio.
The dividend growth strategy allows you to own and partner with your companies. You
share in their successes rather than trade them like baseball cards. TOP 40 DIVIDEND
STOCKS FOR 2012 is the best how-to-do-it guide for dividend growth investing. It
presents a straightforward sensible method for picking great dividend stocks, valuing
them to find fair prices, and managing your portfolio.
Whether your objective is to accumulate wealth over a long period of time or to
create a reliable inflation-beating income stream, the dividend growth strategy
can work for you. Following my step-by-step method, you can start creating a new
dividend growth portfolio immediately or re-tool a portfolio you already have.
This message is meant to be quiet, sensible, and informative. It is for adults who are
serious about stock investing. It is for self-directed individuals who want to be true
investors in superior businesses, purchase stocks at attractive valuations, manage
their portfolios intelligently, and collect a fair share of the profits of the companies they
invest in.
Keep reading to find out…
1. Why Dividend Stocks are Good for Long-Term Wealth Building
2. Why Dividend Stocks are Good for Immediate Income
3. Whether Dividend Stocks Are Safe
4. What Are The 40 Best Dividend Stocks for 2012?
5. Why Is the Step-by-Step Investment Guide Important?
6. Features, Benefits, and Distinctions from Competitors
7. How to Purchase
**********
1. Why Dividend Stocks are Good for Long-Term Wealth Building
From a long-term perspective, the most profitable stocks are dividend stocks.
The stocks with the best total returns are not the headline-grabbing high-growth, high-
priced, “latest great thing” issues. They are not hot technology stocks. The champions in
the best-total-returns game are dividend-paying and dividend-raising stocks.
Look at this fascinating graph from Ned Davis Research:
Please notice that the total return from dividend-raising stocks (top line) far exceeds
the return from non-dividend-paying stocks. The performance gap widens steadily over
time in up and down markets.
Even during the high-flying bull market of 1982-2000, when so much total return came
from price increases, dividend stocks outperformed non-dividend stocks. The same
thing happened in the market recovery from 2003-2007.
Studies show that dividends have accounted for nearly half of the total return of
the stock market over very long terms. That may surprise you, considering how little
publicity dividends get compared to stock prices. There is no widely reported dividend
index that gets the coverage given every day to the Dow, the S&P 500, and the
NASDAQ indexes.
But those indexes show price changes only. (The chart above reflects total returns, not
just price changes.) Thus, traditional indexes give a very incomplete picture of "how
stocks are doing." No wonder dividends pass unnoticed. But the fact is, hundreds of
billions of dollars are distributed every year by dividend-paying companies. In
2011, more than $240 Billion was distributed by S&P 500 companies alone, an
increase of almost 17 percent over 2010. In 2012, all estimates are that the total
distribution of dividends will increase, as they have in every year (except 2009) for
decades.
Common misconceptions are that dividend stocks are--
- slow-growing and boring;
- only from companies that cannot think of anything better to do with the money; and
- good only for retirees needing income.
These notions are all incorrect. Dividend-paying stocks are attractive as a core
investment for anybody, of any age.
Are you in the “wealth accumulation” stage of your life? That would be basically
everybody short of retirement. You have immediate financial needs: Day-to-day pocket
money, groceries, gasoline, mortgage and car payments, and raising your kids. Beyond
that, your predominant investment goal is to accumulate enough to retire. Under the
dividend growth approach, you reinvest dividends to build wealth. The following chart
shows the impact of reinvesting dividends.
What causes the big difference between the two bars in the chart? Re-investing
dividends brings the miracle of compounding into play. You create a virtuous
circle: Re-invest dividends >> More shares owned >> More dividends to re-invest >> etc.
The dividend growth strategy is not about guaranteeing that you will build a fortune--no
one can control the market value of their portfolio. But the strategy does tilt the odds in
your favor that your total wealth will rise over time, and it does insure that you are
collecting what I call "dividend rights" along the way. The value of those rights increases
over time. It is these dividend rights that will put you in good stead when you hit
retirement age and need inflation-beating income.
**********
2. Why Dividend Stocks Are Good for Immediate Income
Maybe you are already retired. The benefit of dividend stocks is pretty obvious:
They provide income. You do not have to sell the stock to get the dividend. It is
simply sent to you or credited to your account. You don't have to touch your principal.
You can do anything you like with your dividends. Those dollars are not "trapped" inside
the stock's share price. The dividends are distributed directly to you.
If you are a retiree, you can spend the dollars as month-to-month income. This is where
you reap the benefits of intelligent wealth-building during your accumulation years.
My studies show that many retirees want to have both income and a growing nest egg.
Dividends make this possible. You can re-invest some and spend the rest. And, of
course, because dividend stocks are stocks, chances are good that they will generate
price appreciation over time, even without re-investing the dividends.
In the bear market of 2007-2009, many stocks got devastated. But the best dividend
stocks held up better than most. When the bull rally began in March, 2009, dividend
stocks generally rose right back up with the market, even outperforming it when you
include the dividends. And here's the great thing: Most of the best dividend
growth stocks never stopped raising their dividends straight through the
financial crisis and market crash of 2007-2009. Did you know that more than 400
companies kept raising their dividends right through the Great Recession?
That leads us to probably the best benefit of dividend-growth stocks as an income
source. Unlike your pension, fixed annuity, CD, or bond, your dividend income
will grow each year. Stocks with rising dividends are the only ones that appear in the
Top 40. Few bonds increase their payout each year, and neither does your CD or fixed
annuity.
When you retire, you want to have plenty to live on, and you also want to keep
your nest egg safe. These two goals--income and safety--are paramount. If you are
retired, you must figure that you may be in this stage 30 years or more—as long or
longer than you were in the workforce. Besides looking after your own needs and not
outliving your money, you may wish to help your kids buy their first house, be generous
with your grandchildren, or perhaps leave a legacy. That's why income and safety
become so important: Income to live on, safety to keep the golden goose alive.
**********
3. Are Dividend Stocks Safe?
Relative safety is the third benefit of dividend stocks. The champions of the safety game
are dividend-paying stocks.
There are three aspects to investment risk: (1) actual loss of wealth; (2) risk to the
income; and (3) loss of purchasing power to inflation.
Well-selected dividend stocks are low-risk on all three scales.
First, risk of actual loss. Remember what we saw in the graph earlier: Dividend-paying
companies held up much better than non-dividend-payers during hard times in the stock
market. During the fierce bear market of 2007-2009, they held up better and recovered
sooner. This is not surprising. The best dividend-paying companies are mature,
solid, well established, and reliable businesses. Many are wondrous cash
machines, in perpetually successful businesses. They pull in enough money every year
to pay a healthy dividend and still have enough left to grow the business too. They suffer
less during bear markets. In fact, many strengthen their competitive positions during
recessions as shakier competitors falter.
Of course, all stocks are vulnerable to market risk. Historically, dividend-paying stocks
have been less vulnerable than others. In addition, Dividend Growth Investors (as I call
them) become less concerned with the market value of their securities, because they
have purchased the right to receive the dividend payouts. Their focus is on the
dividend. The fact that the price of those securities keeps fluctuating becomes less
important so long as the dividends keep coming.
Second, risk to the dividend. The best dividend companies cut their dividends
seldom and raise them often. Their dividend practices tend to persist, being
tantamount to company policy. They will go to great lengths not to deviate from the
dividend pattern they have established. Stocks with a history of increasing their
dividends and the financial wherewithal to keep doing it are the only kind you will find in
the Top 40.
And finally, risk to purchasing power. This is the hidden risk, the thief that robs us all:
Inflation. You don’t get a monthly bill in your mailbox for inflation. But it is hidden in the
prices you pay for everything, driving up your cost of living. And this is where dividend
stocks really shine.
Well-chosen dividend stocks can be as safe as bonds. In fact, over long time
periods, it can be argued that they are safer, because their income keeps ahead
of inflation via dividend growth. There’s a reason that bonds are called “fixed
income” investments—their yield never rises and neither does their face value.
Do you think the prices of gas or groceries are fixed? Of course not. That's why bonds
can't keep pace. But dividend-paying stocks do keep up with inflation. The dividends
from well-chosen dividend stocks grow faster than inflation. Five percent, eight
percent, or 10 percent annual growth in dividends is not at all unusual. The average
dividend increase for the 40 stocks on 2011's Top 40 list was more than six percent.
Ten of the stocks increased their dividends by 15 percent of more.
**********
4. What Are The 40 Best Dividend Growth Stocks for 2012?
Let me give you a few insights into the Top 40 Dividend-Growth Stocks themselves.
- All companies on the list have increased their dividend for at least 5 years.
Twenty of the companies have raised their dividends for 10 or more years
consecutively, and 14 have raised for more than 25 years consecutively. - Twenty of the companies raised their dividend 10 percent or more in 2011.
Another 17 increased their dividends between five and 10 percent. - The average projected yield of 2012’s Top 40 is 3.8 percent. All but four of the
companies have projected yields of three percent or more. Six of the companies
are "high yielders" with projected yields of more than five percent. - The Top 40 contains stocks from 10 different economic sectors. Most of the
companies derive a significant portion of their revenue and earnings from
overseas, reflecting our modern global economy.
The Top 40 were selected through a rigorous process that I use every year. I first run an
initial universe of about 500 stocks through several threshold screens to get the
candidates down to a manageable number. Then, I use my Easy-Rate™ scoring
system to identify the best dividend growth stocks. The system looks first at the
company's quality, with a focus on its business model, financial strength, and dividend
record. These evaluations make it easy to see if a company is an excellent one or an
also-ran.
After identifying the best companies, I score the stock’s valuation. That means looking
for the best bargains. The entire system is methodical, understandable, and emotionless.
The best dividend growth stocks make it to the Top 40. They are presented in four
tables so you can find them easily: (1) alphabetically, (2) by total score, (3) by company
quality score, and (4) by current dividend yield.
In order to achieve the growth and income benefits described earlier, you need to buy
stocks with good dividend growth rates. The Easy-Rate system puts great emphasis
on growth, so a natural result is that the Top 40 list is dominated by stocks with
a lengthy history of annual dividend increases. It is those growing dividends that
allow you to accelerate total wealth accumulation (if you are reinvesting dividends) or to
receive a rising income (if you are harvesting).
My multi-faceted approach invariably leads to the elimination of many of the highest-
yielding stocks--those with yields of 15-20 percent or more. The problem with most of
the highest-yielding stocks is that their yields are not sustainable. They are
based on things like current unique economic cycles, bubbles, extreme price drops in
the stocks themselves, and other impermanent conditions. You’d have to trade in and
out of such stocks to make them work. That goes against one of the goals of Dividend
Growth Investing, which is that stock turnover should be relatively infrequent. In my own
investing, I make few buys and sells beyond the happy task of reinvesting dividends.
Here is a small sample of the companies that made the grade to land in the Top 40:
- Three of the companies are world-class prescription and over-the-counter
pharmaceutical providers. - Several consumer-products companies supply products with well-known brand
names that are surely throughout your home right now. - One famous company may have served you a hamburger within the past week. Or
maybe a fancy coffee or a smoothie. - Returning from every prior year: You drink their soda every day. Oh, you drink the
other soda? That one’s on the list too. Both are great companies that have been
increasing their dividends for decades. One of them is the worldwide leader in
snacks even if you ignore their beverage business.
The book includes completed Easy-Rate Scoresheets for each of the 40 winners, one
page per stock. This compilation of the best dividend growth stocks is available
nowhere else.
**********
5. Why Is the Step-by-Step Guide Important?
Four chapters in the text comprise a complete how-to-do-it guide. The eBook
presents dividend growth investing in logical steps that build a stairway to understanding
and action.
Dividend growth investing is not about flash and show. It’s about substance and
participating in the success of your companies over long time periods. The text contains
two chapters about identifying the best dividend growth companies, a chapter on valuing
them, and another chapter on managing your portfolio.
Other chapters build the case for dividend growth investing, describe the Easy-Rate
approach, and explain how to create and manage a dividend growth portfolio using the
Top 40 as your starting point.
The text follows the mission of SensibleStocks.com: To help self-directed individual
investors with fact-based, practical, actionable information that they can use to profit in
the stock market.
I write for the individual investor. The levels of comprehensiveness and quality are
high, but everything is in plain English and presented in a pleasing format. The
methodology is totally transparent, and there is nothing that is not fact-based or that you
cannot verify yourself.
The text is non-hyperbolic, educational, and accessible. There are no “Secrets of the
Wall Street Gurus,” “Six Things Wall Street Doesn’t Want You to Know,” or “How to Get
Gains of 1716.8% in Six Months.” Those approaches appeal to some people, but not to
me, and I don’t think to you.
I am excited about dividend-growth investing. Using this eBook as my guide, I have
converted a significant portion of my family's own nest egg over to dividend growth
stocks, in addition to the real-money Dividend Growth Portfolio tracked on this Web site
that I use to demonstrate dividend growth investing in action.
As stated earlier, I think that dividend-paying stocks are an ideal investment for most
individual investors—about the only exception being someone who is looking for fast
hyper-growth. That is unlikely with dividend stocks. Of course, neither is fast hyper-loss.
Owning dividend stocks is exciting, rewarding, and fun. Jump in the pool, the water’s fine.
**********
6. Features, Benefits, and Distinctions from Competitors
Here are the most important features and benefits of TOP 40 DIVIDEND GROWTH
STOCKS FOR 2012:
- Top 40 Stocks: A compilation of fully analyzed dividend growth stocks for 2012.
Use it as your Shopping List to create or improve your dividend stock portfolio.
These stocks were selected as described above, using an exclusive, proven
approach for picking winning dividend growth stocks and identifying favorable
valuations.
- Completed Easy-Rate™ Scoresheets: One concise sheet per stock, 40 in all,
filled out according to the unique point system devised and refined over the past
several years. The completed Scoresheets save you the work of looking up data
and evaluating stocks yourself. The hard work has been done for you. I do
recommend that before buying any stock, you update the information, especially
the stock's valuation.
- Clickable links: Each Scoresheet has a clickable link to the company’s Web site.
No cumbersome URLs to enter into your browser. Other links throughout the
eBook take you directly to data sources, relevant articles, and the like.
- Candid discussion of the pros and cons of dividend stocks. Dividend
stocks will not satisfy someone looking for hyper-growth in a short period of time.
They are not for rapid-fire or very active traders. The text contains a lucid and
comprehensive discussion of the pros and cons of dividend-paying stocks and of
the dividend growth strategy.
- Explains how to build, manage, and maintain a dividend stock portfolio.
Thoroughly covers when to buy, hold, and sell. This eBook is far more than a list of
thoroughly researched dividend stocks. It is a complete textbook and step-by-step
guide to dividend growth investing.
- Real-money portfolio. The Dividend Growth Portfolio maintained on this site is
governed by the principles in the Top 40 Dividend Growth Stocks series. It
illustrates how it all works. The Dividend Growth Portfolio is not a hypothetical
“model.” It is real, and the money is my own. Therefore, I take its investment very
seriously. I urge you to click the link and read the Dividend Growth Portfolio's latest
report card.
- Up to date. The eBook (pdf) format bypasses the lengthy delays of regular book
publishing. By comparison, an often-seen “Best Stocks of 201x” book is
published each year with information that is almost a year old by the time the book
is available. The information in my eBook is just days old at the time of publication.
- Clear, succinct text: About 117 pages of text--well over half the book--augment
the Top 40 stocks and analyses. The text is a friendly, comprehensive, and
intelligent discussion about all aspects of dividend growth investing. Besides the
complete step-by-step guide to creating and maintaining a portfolio of dividend-
paying stocks, there are two chapters that lay out the theoretical foundations for
the dividend growth strategy; a review of 2011 and preview of 2012; a handy
"cheat sheet" that boils the scoring system down to three pages; a chapter on
retirement planning; and a Resource and Article Guide. The book is written in an
accessible, conversational style. The text is augmented with illustrations, tables,
summaries, and other aids to understanding.
- No separate pamphlets. The text is fully integrated. It flows logically. It contains
complete information that is easily comprehensible. There are no cumbersome
“bonus reports” that are really just come-ons to make it seem like you are getting
lots of stuff. That’s just a marketing ploy—and it’s also lazy, forcing you to weave
information from each pamphlet into a complete, integrated picture. My eBook
weaves it together for you.
- Table of all stocks that have ever made the Top 40. Every year, because of
changes in company fortunes and valuations, some stocks are dropped from the
Top 40 and replaced by others. Just a handful of companies have made it to the
top every year. This new table displays all of the stocks that have ever done so and
shows the years they made it. Many of these stocks are still viable dividend growth
stocks, especially if you already own them. (I hold more than one in my Dividend
Growth Portfolio.) In a way, this is "bonus coverage" of ideas that supplements my
Top 40 for 2012. There are more than 100 stocks in the table. This idea was
suggested by a reader last year, and I am glad to provide it.
- Works on Kindle and iPad! Your Kindle allows you to display pdf documents, so
you can load your eBook onto your Kindle. (Note that link-clicking functionality is
not available, this is read-only.) You can also order the eBook from your iPad and
download it into your iPad. If you already have or go get the free Adobe reader for
iPad, you will have all of the functionality, including link-clicking, that you are
accustomed to with pdf documents. Of course, many readers report that they use
this eBook the old-fashioned way: They read it on their computer, or they print out
the pages and put them into a binder. That allows them to highlight passages, dog-
ear pages, and treat it like an old-fashioned book. Some readers just print out a
few key pages, such as the "cheat sheet" stock scoring system or the table of Top
40 stocks sorted by yield.
**********
7. How to Purchase
1. Click any of the “Buy Now” buttons located on this page. The price is $40...a buck a
stock, plus you get the complete text, step-by-step guide, and filled-out Easy-Rate
Scoresheets for each stock.
2. Payment is securely handled through PayPal. You do not need a PayPal account—
they accept major credit cards in the usual fashion.
3. After payment is confirmed, you will receive a “Thank You” email from me. In it, you
will find a clear link to the document you have purchased.
4. Use the link to access the pdf document (eBook). Access is instantaneous.
Download the document to your own computer or iPad. While the material is
copyrighted, there are no annoying restrictions on printing or any other use of the e-book
you have purchased. You own it.
It’s as easy as that. Within a few minutes, you will have your own copy of the
TOP 40 DIVIDEND GROWTH STOCKS FOR 2012: How to Create and Maintain a
Dividend Growth Portfolio.
Best Wishes for Your Investing Success,
Dave Van Knapp
PS: I am really excited about dividend investing. In fact in 2011, I abandoned my Timing
Outlook and other activities based on capital-gains strategies, and I moved the money
into the dividend growth strategy. That means that a large percentage of my wife's and
my personal nest egg is now invested using dividend growth principles. I have come to
understand that if I get the dividend growth part of my investing right, the portfolio value
will take care of itself. I sincerely believe that for the average individual investor, this is
the best form of stock investing for the long haul. And that includes me.
This Special Study is not sold in bookstores. It’s easy to order online. Just click on one
of the "Buy Now" buttons on this page. You will get the TOP 40 DIVIDEND-GROWTH
STOCKS FOR 2011 in minutes. The download to your computer is instantaneous once
payment is completed.
| Dave Van Knapp Author of TOP 40 DIVIDEND GROWTH STOCKS FOR 2012: How to Create and Maintain a Portfolio of Dividend Growth Stocks (This is the fifth annual Top 40 e-book that Dave has published.) About Dave Van Knapp |
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