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The Snowball Effect: Using Dividend & Interest Reinvestment To Help You Retire On Time
Today, we live in a world of 24-hour business television, high-speed trading, and volatile capital markets. Instead of asking your dentist for a hot stock tip, you need only turn on the TV to hear
what the talking heads recommend or jump on the Internet to find thousands of web pages devoted to showing you how to make a quick buck. Don’t listen to pundits and faceless Internet “experts.” Consider instead the power of income investing. If you want true wealth building and the ability to retire on time, consider becoming a “Snowball” investor. This type of investor focuses not on what the price of the investment is, but the income it produces. A “Snowball” income investor embraces a buy-and-hold state of mind and buys dividend-bearing stocks and bonds. This saver will always maintain an innate mental advantage over the average investor. An income investor realizes that no matter what the markets might do in the future, dividends and interest will continue to build up over time. One of the easiest ways for a company to communicate to its shareholders its financial well-being is to announce "your dividend check is in the mail" or “your bond coupon payment is in the mail”.
This book is not written for stock speculators, but for those investors that can embrace the concept of buying and holding income producing securities. This book gives you all the tools necessary to become a successful investor through purchasing dividend stocks, corporate bonds, and also writing covered calls. The book includes profiles of the Top 100 Dividend Stocks that an investor can put their hard earned dollars into. Don’t play the Wall Street game, become a “Snowball” investor and reap the rewards of an income based investment strategy.
what the talking heads recommend or jump on the Internet to find thousands of web pages devoted to showing you how to make a quick buck. Don’t listen to pundits and faceless Internet “experts.” Consider instead the power of income investing. If you want true wealth building and the ability to retire on time, consider becoming a “Snowball” investor. This type of investor focuses not on what the price of the investment is, but the income it produces. A “Snowball” income investor embraces a buy-and-hold state of mind and buys dividend-bearing stocks and bonds. This saver will always maintain an innate mental advantage over the average investor. An income investor realizes that no matter what the markets might do in the future, dividends and interest will continue to build up over time. One of the easiest ways for a company to communicate to its shareholders its financial well-being is to announce "your dividend check is in the mail" or “your bond coupon payment is in the mail”.
This book is not written for stock speculators, but for those investors that can embrace the concept of buying and holding income producing securities. This book gives you all the tools necessary to become a successful investor through purchasing dividend stocks, corporate bonds, and also writing covered calls. The book includes profiles of the Top 100 Dividend Stocks that an investor can put their hard earned dollars into. Don’t play the Wall Street game, become a “Snowball” investor and reap the rewards of an income based investment strategy.
353 pages, Kindle Edition
First published January 1, 2016
161 people are currently reading
111 people want to read
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Displaying 1 - 24 of 24 reviews
September 1, 2017
This book is the go to for stock market investors or people wanting to be. It is extremely detailed and goes into the history of the stock market which I found very interesting. It teaches how to add income to your portfolio through stocks and bonds. It explains how to do dividend investing and so much more. It lists stocks to consider. It teaches that long term investors should succeed. Building wealth takes time. So this isn't a get rich quick book. But it's very informative and well worth the read if you're thinking of investing in the stock market.
September 27, 2016
The Snowball Effect explains in convincing detail why it’s worth it in the long run to invest in stocks and other market instruments, such as bonds, that pay regular income streams over time rather than just speculate in stock growth without fixed income streams. Using statistics, he makes a compelling case why it’s still worthwhile to invest in dividend-yielding (or, in the case of bonds, interest-yielding) investments. My eyes were opened when he showed graphs that demonstrate that there historically have been several years, if not decades, of sideways stock markets… that is, stock markets where the value at which you started hasn’t really changed, despite the long passage of time. With such persuasive reasoning, it’s not hard to see why income streams can tide you over the dry years (or rather, the bear years).
His first (The Treacherous Secular Bears) and last (The Future and the Top 100) chapters were the best, although chapter six on The Covered-Call Strategy was a bit dry and technical. But at the end of the book he has a very helpful appendix, outlining the top one hundred dividend-yielding global stocks as based upon the last ten years. Too bad I don’t live in America, otherwise I could buy many of the U.S. stocks he recommends!
His first (The Treacherous Secular Bears) and last (The Future and the Top 100) chapters were the best, although chapter six on The Covered-Call Strategy was a bit dry and technical. But at the end of the book he has a very helpful appendix, outlining the top one hundred dividend-yielding global stocks as based upon the last ten years. Too bad I don’t live in America, otherwise I could buy many of the U.S. stocks he recommends!
September 14, 2016
I enjoyed this book's history element. His descriptions of the periods of the early 19th century and all the economic malaise that occurred was very informing. I did not realize that the economy and stock markets did so poorly throughout the years from Taft to Truman. His solutions offered for dealing with these market doldrums made sense; buy high dividend stocks and bonds. It seemed so complex at first, but his examples made it much easier to understand how dividend reinvesting all works.
April 2, 2020
Good read
Provided information at a basic level for a layman to understand. I would recommend this book to others who are just starting out with investing.
Provided information at a basic level for a layman to understand. I would recommend this book to others who are just starting out with investing.
September 15, 2020
Dated
This book stops at 2015. The prices in the book would be astronomical if you did what was recommended in the book. The Micro stocks listed are no longer in business. The book is a bit out of date. The principals and history are still good to know.
This book stops at 2015. The prices in the book would be astronomical if you did what was recommended in the book. The Micro stocks listed are no longer in business. The book is a bit out of date. The principals and history are still good to know.
July 27, 2023
Fantastic
Much to learn in this book.
Very optimistic and a thoroughly enjoyable, engaging read.
A page turner that is hard to put down once I began reading.
Would highly recommend this book.
Much to learn in this book.
Very optimistic and a thoroughly enjoyable, engaging read.
A page turner that is hard to put down once I began reading.
Would highly recommend this book.
July 7, 2019
Great book (it reminded me of Buffett’s book of similar title). Very good recommendations for beginners to seasoned dividend Investors.
November 24, 2019
Calculations sometimes confusing. Cannot get the numbers. Covered call strategy is interesting. Top 100.
November 24, 2019
Some calculations were not clear. I’m not sure if they are correct
September 21, 2020
Excellent read
I enjoyed reading and learning from this book. A lot of great information which I can put into practice. Overall excellent
I enjoyed reading and learning from this book. A lot of great information which I can put into practice. Overall excellent
June 18, 2021
Great read
Easy to read. Very helpful. Helps narrow the dividend stock universe and build watchlist to actively learn and buy when ready.
Easy to read. Very helpful. Helps narrow the dividend stock universe and build watchlist to actively learn and buy when ready.
April 5, 2022
Useful Book.
Useful book. Good explanation of the concept. Particularly enjoyed the Top 100 list. Think it was a well written and researched book.
Useful book. Good explanation of the concept. Particularly enjoyed the Top 100 list. Think it was a well written and researched book.
April 16, 2022
Pros: it explains an overall coverage of what the market is with dividends, a segment of options, and bonds.
Cons: I wanted more on the subject of dividends
Cons: I wanted more on the subject of dividends
December 15, 2022
Covered and went too deep on topics that are not related to dividends, such as bonds.. it didnt satisfy my curiosity toward dividends and how to live off them.
June 22, 2025
great book
This was a great book and it gave me lots of good ideas on how to implement a dividend growth strategy portfolio
This was a great book and it gave me lots of good ideas on how to implement a dividend growth strategy portfolio
September 18, 2016
The Snowball Effect: Using Dividend and Interest Reinvestment to Help You Retire on Time, by Timothy McIntosh, gives the reader both a clear understanding of the basics of investing in the stock market and a specific plan for increasing wealth through reinvestment of dividends and interest payments.
Interestingly, I fit his profile of the average investor pretty closely. I invested at the top of the market in early 2000 and watched the value of my holdings plummet. So I got out, on the theory that I’d cut my losses. As he points out – and I learned the hard way, the stock market does not always go up. Many shared my experience. According to the author, in 2007, 65% of the population had investments in the market. In 2016, it dropped to 52%. People are scared of losing their money in a volatile market.
However, McIntosh explains that the ups and downs of stock value become less important if you invest in stocks that pay dividends. In that case, you can reinvest your dividends, buying more stock when the price drops. Over time, as the author illustrates through many examples, you are more likely to increase your portfolio value by reinvesting your interest and dividends than by waiting for the market value of the shares to rise.
“Investors love dividends”
Along the way, McIntosh gives some really interesting history of the stock market and the country. In 1921, the U.S. unemployment rate was 12%. In 1933, it was 25%. In 1974, it was 8.7%. (It’s currently 4.9 %.)
Paying dividends became popular after the Great Depression. So many people had lost so much in the Crash that they wanted to see a regular payment to be reassured a stock was worth holding. Today, dividend-paying stocks can help insulate the investor from downward trends in the market by providing income. McIntosh points out that 40% of investor returns over the last 110 years of the market’s existence have come from dividends.
However, companies paying dividends are less common now than they were in the post-Depression years. Today, only 50% of the Standard and Poor’s Index of 500 large companies offering stock pay dividends over 2%. McIntosh finds, though, that those companies offering dividends to stock holders enjoyed a better performance than the broader market overall.
Balancing your holdings
McIntosh also talks about the benefits of including small-cap holdings, even though they are typically smaller companies, pay smaller dividends, and have greater volatility.
Bonds are also useful for balance. In general, when interest rates fall, bond prices go up, and vice versa, so holding both with allow the investor to weather the vagaries of the economic climate.
He recommends US Treasuries as a risk-free addition and corporate bonds as another way to increase your portfolio variety and therefore stability.
In all cases, he recommends that you reinvest your interest in order to create “the snowball effect.”
This book really surprised me. It’s a clearly written, engaging read by a well-informed author, laying out in great detail an investment strategy that he’s found to be a success. The last part of the book is a list of his Top 100 Picks – dividend-paying companies that he finds reliable choices for this formula.
You may have personal criteria that rule out your investing in some of these companies, but you can’t argue with the clarity or depth of the author’s argument. I don’t typically read investment guides, but this book answered a lot of old questions rumbling around in the back of my mind. What’s a P/E ratio and why should I care about it? What does the fluctuation of the Dow-Jones Industrial Average really mean? What’s a micro-cap? What’s a “covered call”?
You probably need to read this book. Highly recommended.
Interestingly, I fit his profile of the average investor pretty closely. I invested at the top of the market in early 2000 and watched the value of my holdings plummet. So I got out, on the theory that I’d cut my losses. As he points out – and I learned the hard way, the stock market does not always go up. Many shared my experience. According to the author, in 2007, 65% of the population had investments in the market. In 2016, it dropped to 52%. People are scared of losing their money in a volatile market.
However, McIntosh explains that the ups and downs of stock value become less important if you invest in stocks that pay dividends. In that case, you can reinvest your dividends, buying more stock when the price drops. Over time, as the author illustrates through many examples, you are more likely to increase your portfolio value by reinvesting your interest and dividends than by waiting for the market value of the shares to rise.
“Investors love dividends”
Along the way, McIntosh gives some really interesting history of the stock market and the country. In 1921, the U.S. unemployment rate was 12%. In 1933, it was 25%. In 1974, it was 8.7%. (It’s currently 4.9 %.)
Paying dividends became popular after the Great Depression. So many people had lost so much in the Crash that they wanted to see a regular payment to be reassured a stock was worth holding. Today, dividend-paying stocks can help insulate the investor from downward trends in the market by providing income. McIntosh points out that 40% of investor returns over the last 110 years of the market’s existence have come from dividends.
However, companies paying dividends are less common now than they were in the post-Depression years. Today, only 50% of the Standard and Poor’s Index of 500 large companies offering stock pay dividends over 2%. McIntosh finds, though, that those companies offering dividends to stock holders enjoyed a better performance than the broader market overall.
Balancing your holdings
McIntosh also talks about the benefits of including small-cap holdings, even though they are typically smaller companies, pay smaller dividends, and have greater volatility.
Bonds are also useful for balance. In general, when interest rates fall, bond prices go up, and vice versa, so holding both with allow the investor to weather the vagaries of the economic climate.
He recommends US Treasuries as a risk-free addition and corporate bonds as another way to increase your portfolio variety and therefore stability.
In all cases, he recommends that you reinvest your interest in order to create “the snowball effect.”
This book really surprised me. It’s a clearly written, engaging read by a well-informed author, laying out in great detail an investment strategy that he’s found to be a success. The last part of the book is a list of his Top 100 Picks – dividend-paying companies that he finds reliable choices for this formula.
You may have personal criteria that rule out your investing in some of these companies, but you can’t argue with the clarity or depth of the author’s argument. I don’t typically read investment guides, but this book answered a lot of old questions rumbling around in the back of my mind. What’s a P/E ratio and why should I care about it? What does the fluctuation of the Dow-Jones Industrial Average really mean? What’s a micro-cap? What’s a “covered call”?
You probably need to read this book. Highly recommended.
September 8, 2017
The Snowball Effect should be the foundation for any new investor. I've been interested in the stock market for a long time but always had felt that I would need a Masters in Business just to even comprehend the lingo and wash of numbers. However, McIntosh uses clear language and begins with the history of the NYSE. He outlines what had, and hadn't worked, for investors in the past so we can properly predict what will happen in the future. We share the philosophy that one should never make an investment, or purchase if it is not safe. The NSYE by nature is volatile and unpredictable, but after reading this book I am confident that I can make sound investments that will produce consistent returns despite the economic situation we may be placed in.
September 28, 2016
Having worked in Financial Services all my working life, and recently retired, this book couldn’t have interested me more. Luckily for me, I didn’t need to invest in the Stock Market, but if I had, this would have been the book for me.
It looks back historically from the twenties right up to the present day, and gives the reader many interesting facts that I for one didn’t know. Then there is plenty clear concise advice on how and what to invest in. Anyone considering retirement would do well to read this book. Excellent value.
It looks back historically from the twenties right up to the present day, and gives the reader many interesting facts that I for one didn’t know. Then there is plenty clear concise advice on how and what to invest in. Anyone considering retirement would do well to read this book. Excellent value.
October 24, 2016
"Buy on the assumption that the stock market would close the next day and not reopen for five years ... "
This book, having its title similar to a biography of Warren Buffett, would intrigue browsers, and it will draw them in further upon reading its wonderful opening quote by the ‘Wizard of Omaha’: “I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years. –Warren Buffett–”
However, this book is not just about Warren Buffett’s investment philosophy, but a much broader ‘handbook’ with practical advice on how to achieve one’s retirement goals by investing in blue-chip dividend paying stocks, high-yield bonds, and writing covered calls. As the title would suggest, this book is not written for the stock market speculators (the buy low sell high crowd), but for those who have the discipline to purchase and hold income producing securities and assets for a long term.
This is the fourth book by the well-known author and portfolio manager, who is also the founder of a management company. Timothy McIntosh, hence writes and provides recommendations based on his practical experiences. The book also gives an informative perspective on the Dow Jones Industrial Average and a history of the secular bear markets during the last over one hundred years. There is also a tutorial on how companies decide to pay dividends, which both novice and experienced investors would find useful. But, perhaps, the most helpful part of the book is at its end which contains recommendations for Exchange Traded Funds (ETFs), Corporate Bonds, micro-cap dividend stock, and a Top 100 List of a sample $100,000 portfolio. Readers would find its projected dividends and interest returns forecasts for the years 2016 to 2025 most interesting.
In today’s environment of banks’ saving accounts and Certificates of Deposits paying extremely low interests, investors and future retirees should investigate the “Snow Ball Effect” described in this practical book. The valuable information and recommendations, presented in a readable manner in this inexpensive book, would likely cost much more elsewhere. Highly recommended.
This book, having its title similar to a biography of Warren Buffett, would intrigue browsers, and it will draw them in further upon reading its wonderful opening quote by the ‘Wizard of Omaha’: “I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years. –Warren Buffett–”
However, this book is not just about Warren Buffett’s investment philosophy, but a much broader ‘handbook’ with practical advice on how to achieve one’s retirement goals by investing in blue-chip dividend paying stocks, high-yield bonds, and writing covered calls. As the title would suggest, this book is not written for the stock market speculators (the buy low sell high crowd), but for those who have the discipline to purchase and hold income producing securities and assets for a long term.
This is the fourth book by the well-known author and portfolio manager, who is also the founder of a management company. Timothy McIntosh, hence writes and provides recommendations based on his practical experiences. The book also gives an informative perspective on the Dow Jones Industrial Average and a history of the secular bear markets during the last over one hundred years. There is also a tutorial on how companies decide to pay dividends, which both novice and experienced investors would find useful. But, perhaps, the most helpful part of the book is at its end which contains recommendations for Exchange Traded Funds (ETFs), Corporate Bonds, micro-cap dividend stock, and a Top 100 List of a sample $100,000 portfolio. Readers would find its projected dividends and interest returns forecasts for the years 2016 to 2025 most interesting.
In today’s environment of banks’ saving accounts and Certificates of Deposits paying extremely low interests, investors and future retirees should investigate the “Snow Ball Effect” described in this practical book. The valuable information and recommendations, presented in a readable manner in this inexpensive book, would likely cost much more elsewhere. Highly recommended.
September 23, 2016
Having been interested in the markets for years, I immersed myself easily into Timothy McIntosh's well-written explanation of what goes on inside them. What makes the markets move – either up or down. It's easy to understand, provides a mix of history and advice, and it's a smooth read as well.
The 1982 secular bull market is recounted, and I well remember its start. The actual day, in fact. I was living in Saudi Arabia then and bought a copy of Newsweek Magazine. On the cover was a picture of Joe Granville with a caption underneath reading “Joe says jump.” Granville was a leading market guru at the time and he advised everyone that when the market opened on the following Monday it was going to be very bad indeed. In fact, Monday morning the market fell precipitously, but then recovered and closed up on the day. That was the start of an astounding bull run that went on for years. At the time, I was very focused on gold, which had been the outstanding performer in the previous decade. Like an old general, I was fighting the last war and missed out on the start of that amazing investment opportunity.
For younger people especially who are looking to secure a comfortable financial future, this book gives sound advice. The list of dividend-paying stocks at the back of the book gives an excellent, simple guide to follow also.
“The Snowball Effect” is highly recommended, and rates an easy five stars.
The 1982 secular bull market is recounted, and I well remember its start. The actual day, in fact. I was living in Saudi Arabia then and bought a copy of Newsweek Magazine. On the cover was a picture of Joe Granville with a caption underneath reading “Joe says jump.” Granville was a leading market guru at the time and he advised everyone that when the market opened on the following Monday it was going to be very bad indeed. In fact, Monday morning the market fell precipitously, but then recovered and closed up on the day. That was the start of an astounding bull run that went on for years. At the time, I was very focused on gold, which had been the outstanding performer in the previous decade. Like an old general, I was fighting the last war and missed out on the start of that amazing investment opportunity.
For younger people especially who are looking to secure a comfortable financial future, this book gives sound advice. The list of dividend-paying stocks at the back of the book gives an excellent, simple guide to follow also.
“The Snowball Effect” is highly recommended, and rates an easy five stars.
September 20, 2016
I have to say that before I read this book, I assumed the same things most investors do ... that you have to buy low and sell high, or you'll never make money in stocks and bonds. And then you have to hope that the market doesn't tank.
What I learned instead is that buying dividend-bearing stocks (and yielding bonds) is the secret to market-proofing your investment. The primary takeaway from the book is to buy stocks and bonds that yield dividends or payments, and then reinvest the dividends or payments into more of the same investments. If you do, and the market tanks, your investment is still worth much more because you have so much more of it! Then, when the stock's price rises again (or better yet, splits!), the value of your investment REALLY grows.
Of course, there's much more detail in the book, and better yet, lots of real-world examples. The examples the author uses really help you understand just how much, and how quickly, your investment can safely grow.
What I learned instead is that buying dividend-bearing stocks (and yielding bonds) is the secret to market-proofing your investment. The primary takeaway from the book is to buy stocks and bonds that yield dividends or payments, and then reinvest the dividends or payments into more of the same investments. If you do, and the market tanks, your investment is still worth much more because you have so much more of it! Then, when the stock's price rises again (or better yet, splits!), the value of your investment REALLY grows.
Of course, there's much more detail in the book, and better yet, lots of real-world examples. The examples the author uses really help you understand just how much, and how quickly, your investment can safely grow.
October 3, 2016
I found this book intriguing as it offered a combination of history and investing. The author went through the various difficult economic periods including the Great Depression, the oil stocks of the 1970s, and the dot.com busts. They were all marked by excessive speculation in the stock markets up to that point. The big lesson for me was that after periods of excessive speculation, markets can do very poorly for long periods of time. Most importantly, investors do not do well financially. As we know these historical events repeat themselves time-and-time again, his book primarily focuses on "putting the horse blinders on" in regard to the actual markets themselves, and concentrate on income. The book is well thought out and after the historical section in Chapter 1, Mr. McIntosh builds on, fact after fact, of how important income is to anyone hoping to make it to their golden years through the next calamity.
September 9, 2016
I'm always fascinated to learn more about economics, and this book drew me right in by the title and cover. I had to find out more about what was inside the book, and I have to tell you that I was not disappointed. It was a mix of history about the dow jones and similar pieces of the stock market, but it also includes some really interested advice that is concrete and explains exactly why some bonds should be avoided.
This one is really great and I managed to read through it really fast. Many of the features of the book are things I'll never be able to take advantage of, but I listen to a lot of money podcasts and I like learning about stuff like this just because of how interesting it is. If you're looking to learn more about this kind of trading and volatile markets, then check out this book!
This one is really great and I managed to read through it really fast. Many of the features of the book are things I'll never be able to take advantage of, but I listen to a lot of money podcasts and I like learning about stuff like this just because of how interesting it is. If you're looking to learn more about this kind of trading and volatile markets, then check out this book!
October 29, 2016
A great step by step, comprehensive guidebook that provides a lot of useful information for beginning and experienced investors alike, especially those interested in long-term stock investments. While it explains the benefits of dividend stocks investing, it offers tips and the best investment strategies. The author explains why dividend investing is the safest way to invest in stock market and provides a list of the best companies to invest: stable, historically high-performing companies that pay their earnings out to shareholders.
The book is well written. It’s easy to understand and follow because all the terminology is explained along the way.
The book is well written. It’s easy to understand and follow because all the terminology is explained along the way.
Displaying 1 - 24 of 24 reviews