The Case for Dividend Growth: Investing in a Post-Crisis World

The Case for Dividend Growth: Investing in a Post-Crisis World

by David L. Bahnsen


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Are you looking for an investment strategy that offers growth, income, and best of all, growth-of-income? The Case for Dividend Growth proposes the most effective method for exploring, realizing, and reaching your financial goals.

Both the tech bubble burst of 2000, and the financial crisis of 2008, poked significant holes in the primary investment belief of too many investors today—that one can just blindly withdraw from principal, and that equity returns will keep up. Too many investment advisors have taken the path of least resistance, not aware of the risk in systematically withdrawing from what, at times, will be a declining portfolio.

Investors seeking to accumulate money for their future needs, and investors needing to withdraw money now for a present need, both have one thing in common: Dividend Growth investing represents a powerful weapon in the achievement of their objectives.

Market volatility is not something any investor can escape, but benefitting from it (for accumulators reinvesting dividends), and being insulated from it (for withdrawers taking only from a growing flow of dividend income), are achievable results for those who understand the time-tested, sustainable, intelligent strategy of investing that is Dividend Growth.

Product Details

ISBN-13: 9781642933567
Publisher: Post Hill Press
Publication date: 04/28/2020
Edition description: Reprint
Pages: 192
Sales rank: 416,660
Product dimensions: 5.50(w) x 8.25(h) x 0.40(d)

About the Author

David L. Bahnsen is the founder and Chief Investment Officer of The Bahnsen Group, a wealth management firm managing over $1.5 billion of client assets, with offices in Newport Beach, CA and New York City. He is consistently ranked as one of top advisors in the nation by Barron’s, Forbes, and The Financial Times.

Table of Contents

Introduction xi

1 Why People Invest: Cash Flow is King 1

2 What's Old is New Again: Historical Context and Realities in Dividend Growth 14

3 Not Buying the Stock to Get the Dividend: Buying the Dividend to Get the Stock 24

4 Accumulation of Wealth: The Eighth Wonder of the World, on Steroids 37

5 Withdrawal Mechanics Matter: Avoiding the Poison of Negative Compounding as You Tap Your Nest Egg to Live Happily Ever After 51

6 Opportunity Cost Myth: Why Dividend Growth Investing Is Not a Return Consolation Prize 66

7 The Threat of Inflation: The Self-Contained Offense and Defense in Dividend Growth Stocks 79

8 But What About Stock Buybacks? 92

9 To This End We Work: Avoiding Dividend Cuts 108

10 Clearing up the Confusions: High Yield vs. Growing Dividends 122

Conclusion: Summarizing the Case for Dividend Growth Investing in a Post-Crisis World 132

Appendix I Dividend Growth in International Markets 140

Appendix II Dividend Growth in the Context of a Fiduciary Standard 151

Acknowledgments 157

Endnotes 161

About the Author 165

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