READINGROOM: All About Dividend Investing: The Easy Way to Get Started

Physician's Money Digest, February 2006, Volume 13, Issue 2

All About Dividend Investing:

The Easy Way to Get Started

Hoping to catch income and capital appreciation, many people in today'suncertain stock market chase after performance like a dog after its owntail. With interest rates still near 40-year lows, where can physician-investorsturn to fight off inflation, the bane of investing, and still garner outstandingreturns? Authors Don Schreiber Jr. and Gary E. Stroik maintain that the onlyconstant in investing is dividends, and their book (McGraw-Hill; 2004) provides very compelling evidencefor this often forgotten investment medium. A distribution of a company'searnings, dividend-paying stocks have garnered superior performance for over acentury—despite stock market highs and lows—whilereducing short-term risk and maximizing long-termgrowth. With over a combined 40 years of investing experience,Schreiber and Stroik believe that dividend stocksare the glue that holds a portfolio together, and work forjust about any investor at any stage of investing by loweringrisk, providing growth, and steadily increasing overtime. This step-by-step guide helps investors to identifyunderpriced dividend-paying companies, choose dividendratios, and then assemble the best picks into a solid andsuccessful dividend portfolio.