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Single Best Investment Creating Wealth with Dividend Growth

ISBN-10: 0965175081

ISBN-13: 9780965175081

Edition: 2nd 2006 (Revised)

Authors: Lowell Miller

List price: $27.95
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Description:

This witty guide advises readers to stop playing the stock market or listening to television gurus and instead put their money into dividend-paying, moderate-growth companies that offer consistent returns and minimum risk. Citing statistics that show companies initiating and raising dividends at the fastest rate in 30 years, this analysis declares once-stodgy dividends to be "the next new thing" and provides simple rules for choosing the best stocks, using traditional evaluation tools, reinvesting dividends, comparing stocks and bonds, and building a portfolio. Technical aspects of the stock market are explained in the final pages that include two new chapters and revised statistics as well as academic studies, historic back-tests, examples of real-time performance, and a list of resources for further research.
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Book details

List price: $27.95
Edition: 2nd
Copyright year: 2006
Publisher: Print Project, The
Publication date: 4/1/2006
Binding: Hardcover
Pages: 265
Size: 6.00" wide x 9.00" long x 1.00" tall
Weight: 1.518
Language: English

<div><b>Lowell Miller</b> is the author of <i>The Momentum-Gap Method </i>and <i>The Perfect Investment</i> and is the president of Miller/Howard Investments, Inc. He is frequently quoted in <i>The Wall Street Journal</i> and <i>Barron's, </i>has written for <i>The New York Times Magazine, </i>and appears on television business shows. He lives in Woodstock, New York.<br></div>

Introduction
A typical situation
Information everywhere
So many options
Is there a simple strategy that makes sense and works?
This book's goal
Impeccable common sense
Comfort level
The mind extrapolates
Important lessons from the field of Behavioral Finance
The psychology of loss, the psychology of gain
Sell too quick?
Self control
Narcissistic distortions
Open your inner eyes
Awareness of the inner life
Investors, listen up!
Summing up
The First Hurdle: Say Goodbye to Bonds and Hello to Bouncing Principal
The environment for investors
A bill that never arrives in the mail
Maintaining purchasing power
Graphical view of inflation and the declines of the dollar
A loaf of bread became a slice of bread
"Safe" investments do not outperform inflation
Bonds haven't really beaten inflation
Bonds, bad
Learning to love fluctuations
The risk/confidence equation
Banks in the 1990s
Easy to hold, easy to buy declines
Summing up
The Eighth Wonder: A First Look at Compounding
Harnessing the power of time and growth
Compounding is the money that money makes
Simple vs. compound gains
Time is all you need
Some magical examples
The eighth wonder
Average annual returns
Time, patience, and the right kind of stock
A company's reliable growth shared with owners
Summing up
The Single Best Investment: Creating Your Own Private Compounding Machine
The "parts" of a compounding machine
The operator
Dividend growth is the hidden key
Dividend growth drives the compounding principle
Dividends are the truth
Management's signaling device
High returns from dividends alone
Dividend growth boosts a stock's price
Reinvestment is behind the bulk of long-term wealth creation
An investor's growth connects to a company's growth through rising dividends
Summing up
The Single Best Investment Strategy Applied
An almost impossibly simple formula
High financial strength
Low debt
High interest coverage
Moderate reliable earnings growth
Credit experts do the rating work for us
Dividend history
Quality is a management issue
Tough times, acquisitions
Franchise or niche
Real products for real people
High current yield
A better base level quickens the end point for most mortals
Some simple ways to project future dividend growth
Emphasizing reliability of mature companies
Cyclicals are problematic
Obvious cases are good enough
Summing up
Traditional Valuation Tools
The quest for cheapness is filled with tricks and traps
Good relative valuations can give you an edge
Price/sales ratio
Revenues are the raw material of profit
Price/earnings ratio, a slippery concept
Remember to adjust ratios to the relevant industry group
Book value
Cash flow and cash growth
A takeover?
Insiders activity
Summing up
Does Undervaluation Exist? The Story of the Stock
How can so many stocks be "undervalued?"
Undervaluation and arrogance
A story proposal
The story of the stock
A stable, proven marketplace
A growth kicker
Solid base of reliable cash flow
Consolidation
Stock buy-backs
A tailwind
Can there be bargains?
Moderate reliable growth as a story
Summing up
Charts Can Help You
Academics call them laughable
The alpha mystery
Relative strength studies
Technical analysis helps reveal the subjective attitude of investors
The Miller/Howard quantitative technical study
The key item is relative strength
Six months of relative weakness
When all is in concert
Beware the parabolic
The selling climax
Look for the turn
Technicals for selling
Summing up
A Gallery of Single Best Investment Stocks
An array of various kinds of qualifying stocks, with text pages from Value Line and explanations indicating how to identify and analyze them
For illustration only, not current recommendations
Caveat emptor
How to Hold and When to Sell: Attitude is Everything
Investing is about character
Too many stimuli
The system is an antidote
Easy in, easy out; liquidity is a devil
Avoid tracking your stocks too closely
Let management be your employees
The real estate paradigm, a landlord's attitude
Dividends: always the key
Is it in jeopardy? Has it gone up in the past year?
Other reasons to sell
Summing up
Building Your Portfolio
Asset allocation, today's buzzword
Should you bet on every horse?
Classic asset allocations and their portfolio characteristics
Accomplishing the same thing in a single SBI account
"Balanced accounts" and bond/stock volatility
Industry breakdown of an SBI portfolio
How many stocks?
A 2005 portfolio
Equal dollar weighting
A role for cash?
Tilting toward higher income
An all-stock "balanced" portfolio
Summing up
"The Rules"
Rules, within a relativistic context
The rules
The expected return rule of thumb
Choose the obvious stock-let everything be in gear
Academic Studies, Historic Backtests, Real-Time Performance
Past history can't guarantee the future
As the dividend rises the stock price will also rise
Value stocks, subgroup of high yield stocks, subgroup of high dividend-growth stocks
Firms with lower valuation levels have higher expected returns
Value strategies yield higher returns
The tortoise beats the hare
High returns from high yielding stocks
Highest yielders outperformed 91% of the time over all rolling ten-year periods
Maximum loss half as bad as overall market
Dividend growth reduces volatility in addition to increasing returns
Signaling by management
Studies only confirm common sense
Real-time performance
High yield stocks have the appearance of a free lunch
A bit of a mystery
The Categories of Single Best Investment Stocks
Every candidate must adhere to the "simple formula"
Quality elements vary from industry to industry
Utilities
Seek a growth kicker, as always
REITs
Low debt and net asset value not far below stock price, location location location
Don't be a yield hog
Banks
Seek non-interest income
Oil and gas
They've eaten all the fish already
Major companies
MLPs and pipelines a good play
Insurance
Sensible diversification
A similar "simple formula"
Service businesses
Financial services
Industrial services
Brokers
Outsourcers
We're hooked!
Food and "defensives"
Commodity based
Rubies and onions in the mud
Easy money (we ought to do a study)
Bad odors
A true once-in-a-lifetime opportunity will never be offered to you
Information Resources
A Final Word: The Human Face of Dividends
Feedback Page
Index
About the Author