O'Reilly logo

Buffett and Beyond: Uncovering the Secret Ratio for Superior Stock Selection, + Website, 2nd Edition by Joseph Belmonte

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 21

A Great Dividend Income and Growth Strategy—Part I: The Economic Spectrum of Dividend Stocks

What I'm about to show you in this chapter may possibly turn out to be the best portfolio you have ever envisioned that encompasses both income and growth. From previous chapters, you now understand how Clean Surplus works and how we can structure the best growth portfolios relative to risk and return. Certainly the track record speaks for itself. Nothing, or I should say almost nothing, can outperform a great growth portfolio. However, at some point in life, you will need income from your portfolios. Also, a little less volatility is always nice.

The three steps for forming the dividend growth strategy are deciphered in this chapter. How to select the best stocks was discussed previously, and the enhanced income methods are discussed in Chapter 24.

How would you like to structure a portfolio with a 10-year time horizon that consists of mostly large cap S&P 500 stocks, has the ability to increase in value 150 percent over a 10year time period, can pay out dividends (after 10 years) of 8–10 percent per year (on original investment) with another 4 percent of added income, and all the while exhibits less volatility than the overall stock market? Yes, we are talking about a great dividend income and growth strategy, and in this chapter we will show you how to develop such a portfolio.

It seems very difficult to find the individual stocks that fit the criteria for this type of portfolio ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required