The Ultimate Guide to Financial Freedom with Dividends

A quick overview on what this course covers and what you can expect from it. 

Learn Warren Buffett's recipe for success: "I like buying quality merchandise when it is marked down."

You will discover the differences between trading and investing. The stock market is easy to understand if you look at it as a global webshop full of bargains and not a casino you want to beat.

Understand the connection between the cash generating ability of a company and its dividend payments. 

Earnings and cash flow can be totally different.

Get a glimpse of the 5 steps towards financial freedom.

See how a group of wonderful companies put money into my pocket and get motivated to learn how you can achieve the same.

A quick summary of the most important points you have learned so far.

• Stocks represent ownership in real companies. They are not lottery tickets.
• Invest for the long-run and do not speculate on short-term price movements.
• Focus on companies that produce free cash flow and pay out a part of it as dividends.
• Build a portfolio of stocks that are increasing their dividends regularly.
• Diversify and keep the stock selection process simple.

It's all about Buffett's recipe: find the top quality stocks and buy them when they are marked down.

A quick summary of your initial filtering criteria, which narrows down the field of investable stocks.

• Long and uninterrupted dividend paying streaks.
• No dividend cuts.
• Regular dividend raises.

Such stocks can provide Reliable and Growing Passive Income.

Get to know the free database of quality dividend payers. Learn what the following categories mean:

• Dividend Champion
• Dividend Contender
• Dividend Challenger

Hide all the columns in the spreadsheet that are not needed so that you can have an easy-to-use database of dividend payers.

See the compelling evidence that you'd better focus on U.S. stocks as a dividend investor.

• Results of my mini study revealed.
• The example of oil companies illustrates the difference of dividend policies.
• Buffett says: "We like increasing dividends..."

As dividends are not legally guaranteed you should make some necessary steps.

Here is what you should do (before investing!) if you bump into an exciting story.

Learn how to check a company's dividend history in the quick and easy way.

Get to know the 4 parameters of quality filtering and set the minimum length of dividend raising streak you require.

I give you a "normal" and a "very conservative" recommendation. 

The point is to make sure that the companies you are interested in are willing and eager to pay a dividend.

Learn the difference between the TTM and forward yield. The step-by-step guide helps you to do the calculations.

• Get to know several useful free data sources and see how I use them.
• Learn the key dates of a dividend announcement.
• Learn how to caluclate when the company pays a special dividend.

Get to know the benchmark a stock's dividend yield can be compared to and set the yield goalposts, narrowing the field of investable stocks.

Learn about the thought process that can kill your portfolio.

Instead of focusing on the current yield, see the big picture and how the combination of our quality criteria can lead to better results than the "mindless yield chasing".

See how dividends contribute much more to your total return than you might have imagined. 

Understand the mechanism how dividend increases are reflected in stock prices.

The studies are really convincing and notice that one of them goes back to 1802! Dividend investing is a timeless approach not just a flash in the pan.

Learn to calculate the dividend growth rate and see how you should evaluate the current yield and the dividend growth rate together.

• 3 ways to get the DGR
• The comparison of Coca-Cola and AT&T
• What's the problem with the Chowder rule?

A quick demonstration how I apply the first 4 quality filters.

11 Dividend Champions qualified for the last 2 rounds of filtering.

Understand the difference between profit and cash flow. Learn how to evaluate the safety of the dividends.

• An eye-opening example of cash flow vs. earnings
• See where you can get the cash flow data you need (quickly and free)
• Understand what free cash flow means
• Draw the line! When is the dividend well covered?
• The example of same raises, different stories

See how I apply this filter on the shortlist.

A quick summary of the quality criteria.

Understanding these you can be sure that only the "top quality merchandise" survived our filtering so we are done with the first part of Buffett's success recipe.

Never compromise on quality! The bitterness of poor quality remains long after the sweetness of low price is forgotten.

Get to know the indicator, which shows whether a quality stock is a good buy at the moment or not.

• See how buying a top quality stock like Wal-Mart can lead to disastrous results if you overpay.
• Avoid overpaying but do not go for perfect timing!
• "Price is what you pay, value is what you get." (Buffett)

See how I apply this criteria on the shortlist of companies.

See what selective contrarian investing means and learn about the psychological factors that can influence your investment results.

• When do quality stocks go on sale?
• The example of Altria and "The Death of Equities"
• Being contrarian is just as dumb as following the herd if you are not selective

Timing the market is not only impossible but it is not needed either for outstanding investment performance.

• There is not a single successful "market timer" on Forbes' list of the richest people.
• Schwab's study shows investing immediately and dollar cost averiging are the 2 possible ways to go.

Some convincing examples to illustrate where dividend growth investing can take you.

• AT&T vs. Archer Daniels Midland
• See how yield on cost climbs with every dividend increase
• 30 years with Johnson & Johnson
• Chevron: when disaster strikes, your outperformance is still there!
• Berkshire vs. the best dividend stocks

You can use the tools I show to create your own examples and more proof.

See why you should diversify and not try to become the next Warren Buffett.

• Understand the difference between diversification and focus investing
• Will you put in the same amount of work Buffett does?
• Everything can be manipulated but dividend is paid in real cash.

A list of the most common mistakes dividend investors make.

Learn how to monitor your stock positions and when to sell.

• What to keep an eye on after you bought the stocks?
• How to do it in less than 2 hours/week?
• The number of stocks in your portfolio affects your monitoring process.
• Passivity is key to investment success! (See Fidelity's study)

Flow-through entities like REITs, MLPs, BDCs represent a higher level of risk. See the reasons and learn the relevant dividend coverage metrics of these companies.

• The Kinder Morgan surprise
• The dark side of being in a tax advantaged position
• Sources to learn about these companies

Useful tools to help you put together a plan that takes you to your goal of financial freedom.

• Possible phases of dividend portfolio building
• Determine your number!
• Plan with the 2 easy-to-use calculators

See how productive assets like dividend paying businesses can protect and increase your purchasing power.

• The purchasing power of the USD is falling.
• Assets thought to be safe (bonds, bank deposits) are the riskiest
• Volatility is not risk!
• See how McDonald's protected its investors against inflation

The whole stock selection process summarized in a step-by-step format to make your start easier.

A useful list of questions and answers.

Before you leave...