IF YOU'RE INVESTED IN THE FUTURE OF THE STOCK MARKET, THIS IS YOUR WAKE-UP CALL.
You've seen the markets swing from bubble to scandal and back again. You've watched the divide between Wall Street and Main Street grow larger each year. You've wished there was a strategic approach to investing that strengthened portfolios, benefited companies, and bolstered the economy as well.
The answer, according to business investor Daniel Peris, is simple. You need to focus on dividends.
Investors need to demand bigger dividends and U.S. corporations need to pay out more of their profits as dividends.
This is THE DIVIDEND IMPERATIVE.
A powerful new call to action for investors and corporate leaders by the acclaimed author of "The Strategic Dividend Investor"
"Peris makes a compelling case that investors and companies need to focus more on dividends, which have accounted for the lion's share of stock market returns." --John Heinzl, "Toronto Globe & Mail"
"All investors and corporate leaders can benefit from Peris's simple insight." --J. Christopher Donahue, CEO, Federated Investors
Well written. You have to get past the "Dividend Rebel with a Cause" from Dan, but still an amazing read. Having known the author for a while, he is truly one of the most intelligent and insightful people I've met in the finance industry.
Investing can earn money in stocks one of two ways: buy low and sell high (rinse and repeat) and stocks go up because dividends go up. This author believe in #2 as a sustainable investment formula and so do I.
This book doesn't even try to be objective! Whenever the author is saying "on the other hand..." he still shamelessly shills his idea and downplays the counterarguments. The book is about the importance of dividends for private investors. How their decile in recent decades has decimated the long term returns of S&P 500. How directing company cash flow towards buybacks erodes long-term returns of stocks, etc... I mostly agree with the idea and support the move to reintroduce shareholder value generation by increasing dividend payments. However, I'm not an idiot and the way Mr Peris is downplaying the problems of double taxation, automatic dividend taxation for foreign investors, the low interest rate environment, real negative yields on treasury bills and the US multi-decade trend of increasing taxes on dividends and lowering taxes on capital gains, cannot be overlooked. Again, I know why Mr Peris agues for increased dividend payments and I would support his view if we would only live in another reality. There is a wonderful book written by Ned Davis - "Being right or Making money". Mr. Peris, unfortunately, is right but his idea will surely lose money. Please be vigilant and fact check Mr. Peris ideas before deciding to follow his advice.
The concept and idea is solid financial and investing advice. But this could be condensed down to a long form topic instead of a book; way to much repeat information.