If you’re looking for a good book on dividend investing / dividend growth investing, I would highly recommend The Single Best Investment, by Lowell Miller. Although it is almost 20 years old now, I rate this book very highly. In my view, it’s the best book on dividend investing available.
The best book on dividend growth investing
Portfolio manager Miller spends most of the book explaining to readers how they can build their own private compounding machine. He explains that by investing in the best dividend growth stocks, investors can build a portfolio that generates an increasing stream of cash dividends year after year. Miller then goes on to detail exactly what investors should look for in a dividend stock.
Miller argues that a good dividend stock should have three key attributes. These are:
- A high yield
- A high growth of yield
- High-quality fundamentals ie. low debt, strong cash flow etc.
He believes that by seeking out dividend-paying stocks that meet this criteria, the investor can build a machine that spits out an ever-increasing stream of cash payments, irrespective of market conditions.
Common sense investing
The appeal of Miller’s ideas is that they are simple and easy to understand. His investment strategy is a common-sense strategy that is easy to implement. The focus is on allowing compounding to do the bulk of the work for you.
As a result, I have incorporated much of Miller’s strategy into my own personal dividend investing strategy.
The book is easy to read and also quite humorous. It’s certainty not one of those dry investing books that sends you to sleep after the first five pages.
If you’re looking for a book that will make you rich overnight, this book is not for you. However, if you’re looking for a book that focuses on the niche topic of dividend growth investing, this book is excellent. I would highly recommend it to any dividend investor.
You can find it on Amazon by clicking on the link below.
This article is provided for general information only and is not intended to be investment advice. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.