Dividend investors were treated well in 2012 with the release of two great dividend books! You probably know that I published my second book this year; Dividend Growth, but there is another dividend blogger who published his book too. Matt Alden from The Dividend Monk (a very good blog to follow by the way) has released The Dividend Toolkit; How To Efficiently Analyse Dividend Stocks.
About Matt Alden
Matt is part of the “DIY engineer investors” group. I know several engineers and they all seem very interested in the stock market. I guess it’s just another playground for them to use their 6th sense of analysis developed during their engineering studies. Like many others engineers, Matt is also doing well with his own portfolio.
His blog has been around for a while and it’s known for his good dividend stock analyses along with a great newsletter. Basically, if you like my blog, you’ll like his for sure! While I could say that the unique characteristic of my blog is the added humor & creativity in my articles, I can say that Matt’s unique characteristic is definitely his in-depth analysis style. This is also something you find in his book.
The Dividend Toolkit – What’s in It For You?
This is also an advanced dividend investor book so if you don’t already have an investor background, I don’t think this should be your first book. The first 60 pages are to introduce you to the stock market and the concept of dividend growth investing. You may skip these pages if you are a solid investor already or want to read them twice if you are a newbie. However, once the “book starts”, it gets down to some real good advice on portfolio management. For example, he makes a very good point of highlighting the differences between dividend investing and index investing.
Matt’s book provides a great guide to selecting strong dividend growth stocks and provides an excel spreadsheet for further analysis. He explains how to use the Discounted Cash Flow (DCF) Analysis where a company’s value should equal the sum of all future free cash flow. He built 2 great spreadsheets to support you in your investing process so you don’t have to knock your head on the wall to build them yourself:
Discounted Cash Flow (DCF) Analysis Spreadsheet:
9-Matrix Discounted Cash Flow Analysis Tool
15-Matrix Discounted Cash Flow Analysis Tool
Dividend Discount Model (DDM) Spreadsheet:
9-Matrix Dividend Discount Model Tool
15-Matrix Dividend Discount Model Tool
Finally, he has a great segment about REITs (Real Estate Investment Trusts) and MLPs (Master Limited Partnerships) both investment vehicles provide tax advantages.
Overall, I think the Dividend Toolkit is a great resource for any dividend investor, you can get more info on Matt’s blog (just click on the book image):
Disclaimer: I am not paid or making any money if you buy his book from my site. I wrote this review because Matt has a great blog and a great book to offer. I hope you will enjoy it!
Thanks Mike. A good review. Will checkout the book. Can you get a free copy for your commentators?
Good post. I owe Matt a review as well!