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__Part 1. Getting Started__

Why I’m a Dividend Growth Investor

Create a budget

A Penny Saved is a Penny Invested

What Kind of Investor Are You?

The Role of Compound Interest in Your Portfolio

Create a Business Plan, mine is here

Opening a brokerage account

Roth IRA or Traditional, Which is Right For You

Importance of the DOW Jones Industrial Average DJIA

**Part 2. Investing in Dividend Paying Stocks**

Stock Selection

Why a Market Crash Is Not So Bad

Weight vs Dividend Weight

Dividend declaration, ex-dividend, record and payment dates explained

What is a DRIP?

Should I Selectively Reinvest?

Diversifying Your Portfolio

**Part 3. Investing in Real Estate**

How I Bought a House to Save Money

Calculating a cash-on-cash return

Invest for Cash Flow or Appreciation

**Part 4. Dividend Strategies**

Dividend Growth VS Dividend Yield; Which is better?

Options Trading – Introduction to Options Part 1

**Part 5. Tracking Your Investments**

Online Finance Tracking Tools

Simple Google Docs Portfolio

**Part 6. Researching Companies**

The CCC List

Use your Brokerage Account

Morningstar

**Helpful Links**

Using Google Docs for Your Portfolio

Dividend Growth vs Dividend Yield (.xlsx spreadsheet)

David Fish’s CCC List

Nasdaq Dividend History

Google Spreadsheet Function List

Bankrate’s Loan Ammortization Calculator

Finviz Stock Screener

AOM Stock Screener

Historical Dividend Data

Compound Interest Calculator

Foreign Tax Withholding Rates by Country

Open Site Explorer

TwoMargins – discuss company financials

Article explaining differences in: RDS.A/RDS.B , BBL/BHP

**Definitions**

**CAGR/DGR** – Compound Annual Growth Rate/Dividend Growth Rate. See Ex. 1.3.

**Current Yield** – The current annual dividend divided by the current price of the stock.

**DGR** – Dividend Growth Rate

**Rule of 72** – Divide the current interest rate of your investment into 72 for a good approximation on the time it takes to double your investment.

**YOC** – Yield on Cost -The current annual dividend divided by the average cost per share. See Ex. 1.1.

**Examples**

**Ex. 1.1 – Calculate YOC**

I purchased 100 shares of XYZ Company at $10 per share. XYZ pays a dividend of $0.40 per share annually (or 4% at this price). XYZ’s price rises to $16 per share and dividends increase to $0.50. XYZ’s current dividend is .50/16 or 3.125%. My YOC is $0.50/$10 = 5%.

**Ex. 1.2 – Calculate an n-year YOC using the DGR**

What is the 10-year YOC of XOM assuming current yield = 3% & DGR = 8%.

nth-year YOC = (1+DGR)^n * Current Yield

so a 10-year YOC = (1+DGR)^10 * Current Yield

==> (1+.08)^10 * 3 =**6.5**.

**Ex. 1.3**

Let’s calculate a 5-year CAGR for Hasbro (HAS)

Let a = “annual dividend for starting year” (in this case 2006) = .45

Let b = “most recent annual dividend” (in this case 2011) = 1.15

Let i = “interest rate”

Let t = “time in years” (5 in this case)

a * (1 + i )^t = b

=> .45 * (1 + i )^5 = 1.15

=> (1 + i )^ 5 = (1.15/.45)

=> LN (1+i)^5 = LN(1.15/.45)

=>5 LN (1 + i) = LN (1.15/.45)

=> LN (1 + i) = [LN (1.15/.45)]/5

=> LN (1 + i) = .18765393

=> (1 + i) = e^.18765393

=> 1 + i = 1.2064

=> i = .2064 or 20.64%

To find a general formula for an n-year CAGR let’s use from above:

i = { e^ [LN (b/a)] / n } – 1 (where n is the n-year CAGR)

i = [ (b/a) ^ (1/n) ] – 1

So the CAGR is the ratio of your ending year dividend to your starting year dividend to the power of 1/n then you subtract one, where n is your n-year CAGR.

From investopedia: