Friday, August 31, 2012

Book Recommendation: The Dividend Toolkit

Matt Alden, the man behind the curtain over at Dividend Monk, has produced something very rare in the blogging world: an E-book that is actually worth reading.

The topic, surprise, is dividend growth stock investing, and Matt approaches it with the comprehensive approach that those of you who read his stock analysis posts should be very familiar with.  The book, which is a respectable 200 pages of material, takes a soup-to-nuts approach to investing.  Novices can start at the beginning where he explains the basics of corporations, dividends, and the workings of the stock market while more advanced investors can start a little further on in the asset allocation section.  Halfway through the book he starts laying out an analytical approach to evaluating dividend stocks that carries through the last 100 pages of the book.

This book was not written for speed-readers nor should it be read in such fashion.  The method for selecting quality investments goes well beyond dividend yields and growth rates and digs into the balance sheets of the companies being examined.  Towards the end Matt does you a huge favor by telling you what to look for in a stock depending on which industry it is in.  This is critical for you to understand in order to avoid eliminating a stock from your watchlist because you misunderstood why it had such a high debt/equity ratio.

The final section provides a checklist for you to use when making your own stock selections AND it comes along with some Excel based valuation calculators.  Essentially Matt has given you the keys to the castle.  The only remaining question is whether you will use them properly.

The Dividend Toolkit: How To Efficiently Analyze Dividend Stocks can be found here over at DividendMonk.com.  And yes, it is Kindle compatible.  


Looking for more financial advice but getting tired of me going on and on about dividend stocks all the time? Head on over to 6400personalfinance.com and follow me on Twitter @6400PF for a broader approach to building your net worth.

4 comments:

  1. It's a good book, but a bit heaving going at times, it's going to take a while to process all his ideas.

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  2. Rob-

    That's the beauty of it. The book format allowed him to consolidate a lot of information into one place. Getting all of that out onto a blog would require months, perhaps a couple years, of posts and would be harder to navigate.

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  3. Thanks for the review, I appreciate it!

    That's a good point- consolidation was a primary consideration. I had the draft for this guide going back as far as 2010, but I wanted to spend a while observing readers, observing comments, and figuring out how to structure what would end up being a fairly heavy book. As a 200 page e-book, the tricky thing was making it engaging and readable rather than too intimidating.

    Thanks again for the post.

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  4. It is a very well written book, clear and concise, but what I would to see is some bloggers using his math formulas to CND stocks, I mean I did struggle to make sense of that side of it, but on the other side it,s not the kind of material you can digest in one sitting.

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