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 assume 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 top 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 circumstances that promote an old and extremely promising investing strategy again – the constant collection of dividends from companies that proved to
- Have a very stable business model, ideally paired with huge names/brands in fields that are non-cyclic and more or less stable even in shrinking economies (e.g. consumer goods, energy, pharmacy, etc.) and/or
- Have an outstanding track record of paying dividends to their shareholders for decades or even centuries, ideally paired with a constant increase of the payment amounts (e.g. Coca-Cola, Johnson & Johnson, AT&T, Pepsi, etc.)
- Pay out large amounts of dividends compared to their earnings/profits and thus providing high dividend yields (e.g. tobacco companies, oil companies, etc.).
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 documenting 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 assumptions, 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.
- You seek financial independence mostly by owning dividend paying companies listed on the stock market
- Your goal is to cover all your living expenses with dividend payments so that you won’t need an active job anymore
- You dream about quitting your day job and live a life on the beach by collecting dividend payments
- You truly believe you are on the right way to live mainly off your dividend paymentsand you are confident to reach that goal
- You earn an average to high income from your day job ($30,000-$150,000/year) and believe you will make it to financial freedom with dividends by saving high amounts of your income
- You WANT to become financially independent but you are still skeptical about whether it will really work that way
- You want to minimize your risk of failing with the dividend strategy
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.
- You are completely new to topics like financial freedom, dividend strategy, stock market
- You don’t know what terms like dividend payment, yield, dividend growth or payout ratio mean
- You are not familiar with REITs, MLPs, Dividend Aristocrats (the book will not focus on any of those types, but terms like this will be mentioned throughout the book and I’m not going to explain them).
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 this topic, 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% of the cases. There is no argument about earning an extra $1,000 per month is a truly great achievement and the extra money can be spend on whatsoever, most likely it will be spent to get another step closer in the direction of financial freedom, meaning that most investors are willing to re-invest their dividends, which will again increase their forward payments in the next month, quarter or year. But becoming financially independent is another story.
Let's go and unveil the 10 reasons why you most likely will NOT be able to live off your dividend paychecks in the next 20 years and what you can do to maximize the chances that you'll achieve this admirable goal anyway.
Checklist to avoid the top 10 pitfalls in dividend investing
As a true bonus when buying this ebook, you will recieve a checklist that helps you to plan for each of the reasons why dividend investors will most likley never be able to live off their dividend income. There are suggested mitigation actions you can set up and check off the list. It's a tool that helps you to maximize your chances to live off your dividend income at some day.
Interview with Justin who retired by age 33 and lives off passive income
Why don't we ask someone who already achieved the goal of financial independence? Justin from the Blog www.rootofgood.com retired by the young age of 33 and lives off his passive income, coming from dividend paying investments and other sources. When downling this ebook, you get your free bonus chapter with the complete interview exclusively made for "The Dividend Lie".
The eBook is in PDF format offered via the electronic products platform "Clickbank". It comes within a ZIP archive, together with the sample spreadsheets. You need to have Adobe Acrobat Reader to read the eBook and any Microsoft Excel compatible software to open the spreadhseet. Clickbank offers a high security payments system and also allows you an easy money-back process if you are not satisfied with the ebook. All you need to do is to click on the Buy Now Button below and unveil the top 10 reasons, why dividend investors fail to live off their dividend income. Buy it and make sure you don't end where most dividend investors might end!
I think it is important to let you know that I am NOT a financial advisor nor do I have any financial background (see deatiled disclaimer at the end of this website). What you get out of this ebook is my personal opinion about dividend investing and living off dividend income. I'm underlying my statements with documented spreadsheet calculations in the ebook. You get all those spreadsheets for FREE when buying the ebook. The calculations will allow you to play around with your numbers and therefore to customize the calculations for your own needs!
...I'm looking forward to welcoming you on the inside!
P.S.: In case you want to drop me your opinion or have any questions to ask, feel free to contact me under firstname.lastname@example.org
I am a private person and not a financial advisor, nor am I a tax advisor. All outlined reasons, actions and considerations are my own opinion and should not be used to take action on financial decisions. I do not have any financial background nor do I have any financial education. None of the lessons and takeaways outlined in the eBook are recommendations to invest money in any kind of way. If you invest money in dividend paying stocks, your capital can decline and under some circumstances investing into stocks can lead to a total loss of your capital. To get advice in financial topics contact your bank or investment advisor. To get advice on tax contact your tax advisor. I do not live in the United States of America, nor am I familiar with US laws, taxes and other specifics in the US financial industry. All assumptions regarding capital gains, dividend yield, etc. are only assumptions as such, without any proof they might become true or not. The calculation examples and calculation templates might contain errors. I cannot be held responsible for any actions you might take by using or reviewing my calculations. Do your own calculations! The author of this eBook cannot be held responsible for any loss, damage or harm resulting of following contents of this eBook or excel spreadsheets. The whole book represents my personal opinions and is for entertainment purposes only. The author of this eBook is invested with long positions in the following mentioned companies: Coca-Cola, Johnson & Johnson, AT&T.
This site and the products and services offered on this site are not associated, affiliated, endorsed, or sponsored by Coca-Cola, Johnson & Johnson, AT&T, Pepsi, nor have they been reviewed tested or certified by Coca-Cola, Johnson & Johnson, AT&T, Pepsi.
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