Dividend Alerts January 2012 issue

6 January 2012

  • An income producing strategy for 2012

  • The Guide to Dividend Investing updated

Dear Subscriber

As we enter 2012, we will no doubt continue to be buffeted by headlines streaming out of Europe, China and Washington. And it's safe to say you can expect volatility to be similar to what we saw in 2011.

Instead of trying to predict and trade the enormously complicated macroeconomic environment, we intend to use the volatility to our advantage.


We focus on finding high quality dividend paying companies that are unfairly beaten down by unrelated macroeconomic factors.

Then, use weakness in the overall market to buy shares in these companies at fire-sale prices, i.e. when they are historically undervalued.

Whenever uncertainties in the markets are (about to be) cleared up and sentiment has(is) changed(ing) investors will once again start thinking about the fundamentals of companies that ultimately will lead to a rally in shares.

But, you see I believe that investments, in particular shares, should work for us all the time. Not just when they happen to be going up in value, but rather by paying us to own them, year in, year out.

Not only that but I expect them to pay out more and more the longer they are held.

And ironically, once you have found investments that meet that requirement capital appreciation comes naturally afterwards.

This philosophy has allowed me to secure positive market beating returns in the past year from the Dividend Income Portfolio that I ran at Dividend Income Investor.com.

It is also why another year of low interest rates don’t bother me too much, raking in increasing dividends from high quality dividend companies.

The time has never been better to get into high quality dividend paying shares. I believe, high quality companies paying increasing dividends offer the kind of security and income stream that no other investment can.

Simple investment strategy anybody can use

Having determined which high quality dividend paying companies I want to own, and, at what price, I just spent some minutes at my online ISA account setting limit buy-orders.

And that's it.

Then, I just wait patiently for the stockmarket to sell me those shares, but only when they have reached those pre-determined historically undervalued levels.

And that’s how you maximise total real returns and that's how I like it these days.

You too can put your investments on ‘automatic’.

Take the Tour

Let me show you how to make better informed long term buy and sell decisions.

Join the Dividend Income Investor.com community.

Use our unique share valuation service to get the share prices at which many dividend paying companies are historically undervalued and overvalued.

Enter and exit the stock market at the right time while receiving increasing dividends from companies that have been paying dividends for decades and are financially strong.

Subscribe Now

Remember our life time guarantee!

Once you are a subscriber you will never pay more for your subscription.

ISAs, SIPPs, trading shares explained

Download Free ISA Guides and other saving, investing, trading and retirement guides

Guide to Dividend Investing - 2012 edition

I have been working on the 2012 edition since late November, when I first began to update, add new material, and reorganise some of the text.

While some readers have asked to include more examples of historically undervalued companies the focus of the Guide squarely remains on its core premise as an introduction to dividend income investing with an emphasis on investing in high quality dividend paying shares when they are historically undervalued.

Several improvements and upgrades to the text have been made. All of the chapters have been checked and updated where necessary. Several of the chapters have been enhanced and expanded. In particular: the very important chapter on the conceptual and theoretical foundations of the maths behind our specific dividend income investing methodology.

Other new features include the introduction of Dividend Value Profiles at Dividend Income Investor.com showing the dividend yields of various companies at which their share prices are at historic undervalue levels as well as at historic overvalue levels.

The resource on further reading materials has been expanded. Initially, I had considered including an overview to the many articles that I have written on dividend growth investing, with direct links to the articles, but this is something for a later edition.

Till next time

Steven Dotsch
Managing editor
EMAR Publishers
Dividend Income Investor.com
Twitter.com @Investoretire

Pass it on

Know someone who'd like to receive Dividend Alerts themselves? Simply forward this link to anyone you think could benefit from our publication: https://www.early-retirement-investor.com/shares-and-dividend.html

Reclaim dividend withholding tax

ISA and SIPP investors with foreign stocks and shares are exempt from UK tax but not from foreign dividend withholding tax. Reclaiming dividend tax abroad is very much a specialist activity and is also rather laborious.

Let Taxback assist you in reclaiming what is rightfully yours.

Dividend Alerts is an unregulated product published by EMAR Publishing, publishers of Early Retirement Investor.com

EMAR Publishing is not registered as an investment advisor or financial advisor.We do not and will not provide personalised investment or financial advice, or individually advocate the purchase or sale of any security or investment. We publish opinionated information about the stock market and companies that we believe our subscribers may be interested in.

There is no guarantee that dividends will be paid. Figures are calculated using the closing prices. All gains are gross, and returns will be affected by dividend payments, dealing costs and taxes. Profits from share dealing are a form of income and subject to taxation. Tax treatment depends on individual circumstances and may be subject to change in the future. Editors or contributors may have an interest in shares featured.

Past performance and forecasts are not reliable indicators of future performance. Shares are by their nature speculative and can be volatile. Your capital is at risk so you should never invest more than you can safely afford to lose.

Information in Dividend Alerts is for general information only and is not intended to be relied upon by individual readers in making (or not making) specific investment or financial decisions. Appropriate independent advice should be obtained before making any such decision.

No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein.

© 2010 EMAR Publishing. All Rights Reserved. The content of this email may not be reproduced without the written consent of EMAR Publishing

Click for Legal Information, Disclaimer and Privacy Statement Here.

Return from Dividend Alerts to Dividend Alerts Archive

Return from Dividend Alerts to Home

Go Back To The Archive
Click Here

Introducing Dividend Income Investor.com

What if you knew when
dividend paying shares are
historically undervalued?

Wouldn't that be of interest
to you?

Our Dividend Value Database
shows you what is undervalued,
what is overvalued and what is
trading somewhere 'in-between'.

CLICK HERE to find out
more details

Get Your Guide to Dividend Investing for just £19.99.

Guide to Dividend Investing cover

Click Here to learn more.

Follow me at Twitter, click:

Get live commentary on dividend paying companies and updates of our progress at Dividend Income Investor.com

Own foreign shares? Reclaim dividend withholding tax!

Dividend Tax back