The Dividend Investor

Rodney Hobson

Rodney Hobson, author of bestseller Shares Made Simple, is back with a brand new book designed to help you build a balanced share portfolio that provides dividend income, whether you're just starting out or ready to retire.Dividends - the distribution of part of a company's earnings to shareholders, usually twice a year - can be a valuable income stream for anyone. Designed for longevity but particularly pertinent in times of low interest rates, The Dividend Investor is packed with real-life examples and analysis of how to gain such added income through reliable shares with healthy dividends.Topics made simple with Hobson's classic style include: ratios, yield, dividend cover, the dividend payout ratio, total return, cash flow, burn rate, gearing or leverage, interest cover, earnings per share and the price/earnings ratio. Plus the advantages and disadvantages of shareholder perks.If you're looking to make the most from your investments, then this book is for you.

Preface Introduction PART A - Dividend Basics 1. Companies and Dividends - The purpose of companies - to pay dividends - Cash is king - Dividends can grow even in hard times - Spreading investments without increasing risk - How is the size of dividend decided? - Different types of dividends - Key points 2. The Dividend Timetable - Payment frequency - When you get paid - Timing your income - Key points 3. Where to Find Information - Company news - Company websites - Full, fast and long-lasting information - London Stock Exchange - Financial websites - Stockbrokers - Newspapers - Magazines - Summary - Key points 4. Results Announcements and Annual Reports - Key points 5. Tax - 1. Stamp duty - 2. Income tax - 3. Capital gains tax - ISAs - Key points 6. A Year in the Life of a Dividend Paying Company - 2010 - 2011 - Key points Part B - Dividend Analysis 7. Profits, Dividends and Cash Flow - 1. Profits - 2. Dividends - 3. Cash flow - Key points 8. Progressive Dividends - Checking the history of dividends - Key points 9. Dividend Yield - A problem of comparing dividends - Calculating the dividend yield - Two types of dividend yield - Key points 10. Other Key Ratios - 1. Earnings per share - 2. Price/earnings ratio - 3. Dividend cover - 4. Gearing (also referred to as leverage) - 5. Interest cover - 6. Cash flow - 7. Total return - Key points Part C - Investing Tactics 11. Picking Sectors - Cyclicals v Defensives - Dividend data by sector - Visibility of earnings - Lumpy earnings - Insurance - Key points 12. Dividends by Index - Indices - Observations - Key points 13. Share Buybacks - Fashions change - Cash is better than debt - Ones to avoid - Key points 14. Flotations - Where the cash goes to the company - Key points 15. Turning Companies Round - Restoring dividends - Key points 16. Rights Issues and Placings - Placings - Claw backs - Key points 17. Takeovers - You must face reality - When the bid goes unconditional - Key points 18. Ethical Investing - Why 'unethical' shares may be cheap - Green companies - Key points 19. Company Perks - Wide range of goodies - Perks overview - To sum up 20. International Investing - 1. UK companies - 2. Foreign companies listed here - 3. Overseas exchanges - Key points Part D - Building a Dividend Portfolio 21. Spotting Buying Opportunities - Buying rumours - Buying on dips - Key points 22. Building a Portfolio Using Stock Filters - Online stock screens - Key points 23. Dogs Might Fly - Key points 24. Income Funds - Two types of funds - Advantages and disadvantages of funds - Where to get information - Income or growth? - Funds offer variety - Key points 25. When to Sell Gloomy trading statements Profit warnings Stop losses Key points 26. A Dividend Nightmare - BP - Why private investors were at an advantage - The explosion - Why the dividend had to go - The dangers of buying back in - Why you should fear the worst - How one piece of bad news leads to another - Key points 27. Ten Dividend Rules Appendix - Dividend Data for FTSE350 Companies Index