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The Ultimate Dividend Playbook: Income, Insight and Independence for Today's Investor
Many people believe that the key to success in the stock market is buying low and selling high. But how many investors have the time, talent, and luck to earn consistent returns this way? In The Ultimate Dividend Playbook: Income, Insight, and Independence for Today’s Investor , Josh Peters, editor of the monthly Morningstar DividendInvestor newsletter, shows you why you don’t have to try to beat the market and how you can use dividends to capture the income and growth you seek.
368 pages, Hardcover
First published January 2, 2008
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373 people want to read
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Displaying 1 - 16 of 16 reviews
March 18, 2011
It's kind of an uneven book. At times, Peters makes things beautifully simple and clear. Sometimes, he even makes things too simplistic. Then, all of a sudden, he throws in something utterly opaque and technical. He gives an overview of numerous industries, and compares his strategy to other market strategies, but he usually only gives a cursory overview of other strategies. The entire book is pretty much devoted to a single strategy, with a narrow range of variation. A lot of the book is repetitive, and since it was written in 2007, you have to wonder whether the strategy is effective beyond the crash.
Overall though, this is a good introduction to dividend investment. It explains how dividends work, and gives some solid advice on how to evaluate whether a company's dividends will be safe and grow. Even if you can't understand 100%, you can still develop some market strategy.
Also, there's a lot of eye-rolling, groaning humor, and more than a fair share of plugs for other products.
Overall though, this is a good introduction to dividend investment. It explains how dividends work, and gives some solid advice on how to evaluate whether a company's dividends will be safe and grow. Even if you can't understand 100%, you can still develop some market strategy.
Also, there's a lot of eye-rolling, groaning humor, and more than a fair share of plugs for other products.
February 12, 2008
Aside from Jaime and Josh, no one is happier that this book is finished than me. My neighbor's stress has finally settled into the Alpine, a sharp drop from the ozone layer from which it was hovering. Seriously, this is a unique and simple look at investing that long-term investors should consider. While I openly disagree with Josh regularly on some utility issues, I immensely respect his opinions and infinitely independent point of view. I think that every investor should give this a read. **Fair disclosure: to my knowledge, this is the only book in which I am mentioned in the forward.
My only critique is in regards to the title...
My only critique is in regards to the title...
December 20, 2024
In The Ultimate Dividend Playbook, one curiously telling artifact of investment strategy was published just before the financial gale of 2008 swept through the world's markets. What that playbook contains is representative both of clarity created by structured analysis and, simultaneously, painful hindsight associated with an era soon to be upended.
At the time, the author's counsel sounded measured and prudent: focus on reliable dividend payers, analyze the underlying economics of businesses, and reinvest for the long haul. Yet reading it now, we can't help but notice the subtle tension between these timeless principles and the ephemeral specifics that have since been proved outdated or at least dramatically tested. As perhaps Adam Smith might observe, there is a related division of labor in financial publishing-the merits being that the quality seal of Morningstar added a certain level of gravitas underpinning any qualitative judgments. These particular judgments, it must now be said, were clearly made under conditions that-as far as the benefit of retrospective hindsight can tell- seem woefully incomplete.
The text is replete with metrics and tickers that, if taken as prescriptions instead of illustrations, may have led the less-experienced investor into turbulent waters. In that sense, we see an uneasy intersection of elegantly reasoned, principle-based investing with the erratic nature of the markets themselves. This volume, like so many investment treatises, provides a sound structure-indeed, the simple arithmetic of dividends and payouts will always remain a powerful beginning-but lacks the final layer of judgment that experience forces upon us. Buying respected companies with stable payouts was, and is, a good idea.
Yet investing is never quite as easy as a recipe card, as it is subject to human folly, managerial missteps, and systemic shocks-even the thoughtfully assembled portfolio will be in a vulnerable state. Of course, hindsight, though brilliant, now points out to us how the author should have given greater emphasis on the permanence of uncertainty and the requirement for intellectual humility. What strikes my perspective is, therefore, the reflective judiciousness which, if continued in a second edition, might enlighten us further by juxtaposing what was suggested at the time with what actually happened. Just as successive editions of Benjamin Graham's Security Analysis and The Intelligent Investor commented upon and refined recommendations made in earlier editions, so would this volume be greatly enriched by a careful re-appraisal.
Principles and data are only as valuable as the learning process they induce. To that end, any retrospective analysis would be nothing other than an admission to the celebrated intellectual honesty-to come out and show readers just how even the most ostensibly rigorous frameworks can be perfected upon confrontation with the alive-and-kicking lessons that reality imparts. Indeed, the lessons within The Ultimate Dividend Playbook are well highlighted: Focus on real economic earnings, comprehend the sustainability of competitive moats, and just be patient to allow the alchemy of compounding to work its magic. Still, the very fact that no later edition is coming-a coming-of-age sort, perhaps, with reflections on what happens after a financial crisis-seems almost a missed opportunity. To the author, if reading this, we say, "Please, please update your book.". A follow-up would not only incorporate the nuances of such a profound market upheaval but would also take the conversation to a higher plane of rigor and reflection.
In the end, it's a thoughtful guide and strong start-point—think of it as the "meat and potatoes" (if you will, "bread and pudding") of dividend investing. But it lacks that extra dimension of historical perspective and intellectual courage to confront past shortcomings to make it the equal of Graham's classics. We only hope that, in due time, the author may provide us with just that-and the world of serious investors will be richer for it.
At the time, the author's counsel sounded measured and prudent: focus on reliable dividend payers, analyze the underlying economics of businesses, and reinvest for the long haul. Yet reading it now, we can't help but notice the subtle tension between these timeless principles and the ephemeral specifics that have since been proved outdated or at least dramatically tested. As perhaps Adam Smith might observe, there is a related division of labor in financial publishing-the merits being that the quality seal of Morningstar added a certain level of gravitas underpinning any qualitative judgments. These particular judgments, it must now be said, were clearly made under conditions that-as far as the benefit of retrospective hindsight can tell- seem woefully incomplete.
The text is replete with metrics and tickers that, if taken as prescriptions instead of illustrations, may have led the less-experienced investor into turbulent waters. In that sense, we see an uneasy intersection of elegantly reasoned, principle-based investing with the erratic nature of the markets themselves. This volume, like so many investment treatises, provides a sound structure-indeed, the simple arithmetic of dividends and payouts will always remain a powerful beginning-but lacks the final layer of judgment that experience forces upon us. Buying respected companies with stable payouts was, and is, a good idea.
Yet investing is never quite as easy as a recipe card, as it is subject to human folly, managerial missteps, and systemic shocks-even the thoughtfully assembled portfolio will be in a vulnerable state. Of course, hindsight, though brilliant, now points out to us how the author should have given greater emphasis on the permanence of uncertainty and the requirement for intellectual humility. What strikes my perspective is, therefore, the reflective judiciousness which, if continued in a second edition, might enlighten us further by juxtaposing what was suggested at the time with what actually happened. Just as successive editions of Benjamin Graham's Security Analysis and The Intelligent Investor commented upon and refined recommendations made in earlier editions, so would this volume be greatly enriched by a careful re-appraisal.
Principles and data are only as valuable as the learning process they induce. To that end, any retrospective analysis would be nothing other than an admission to the celebrated intellectual honesty-to come out and show readers just how even the most ostensibly rigorous frameworks can be perfected upon confrontation with the alive-and-kicking lessons that reality imparts. Indeed, the lessons within The Ultimate Dividend Playbook are well highlighted: Focus on real economic earnings, comprehend the sustainability of competitive moats, and just be patient to allow the alchemy of compounding to work its magic. Still, the very fact that no later edition is coming-a coming-of-age sort, perhaps, with reflections on what happens after a financial crisis-seems almost a missed opportunity. To the author, if reading this, we say, "Please, please update your book.". A follow-up would not only incorporate the nuances of such a profound market upheaval but would also take the conversation to a higher plane of rigor and reflection.
In the end, it's a thoughtful guide and strong start-point—think of it as the "meat and potatoes" (if you will, "bread and pudding") of dividend investing. But it lacks that extra dimension of historical perspective and intellectual courage to confront past shortcomings to make it the equal of Graham's classics. We only hope that, in due time, the author may provide us with just that-and the world of serious investors will be richer for it.
This entire review has been hidden because of spoilers.
August 23, 2025
This was a good one. I have a feeling that Morningstar's books have their shit pulled together and there is a lot to learn from them. I started out as a dividend investor but now I shifted into quality growth companies because the newsletter that I follow and work at has done this and also because the Hungary-US tax treaty has been cancelled. So unless I want to pay 50% in taxes, then I prefer not to focus on dividends. However, for everybody else who is open to this kind of investing, it makes a lot of sense and this book covers it from all angles. And it quite rare for me to find books that I would rate highly in this scene because I have this feeling that it's hard to learn new concepts from them. But this one was so comprehensive that I don't have the heart to downrate it. Because it's just a good book. I don't know why it has so little rating activity or fame here. So if you're ever interested in dividend investing, then be sure to pick this one up because this will teach you everything there is to know. It makes a very strong case for it though, almost as if any other means of investing were inferior, but if you listen to it with an open mind, you will be able to evaluate if this is for you or not. The book may be old-ish, I mean almost 10 years old now, but that doesn't detract from its usefulness. I think the wisdom in it is evergreen, and it is rather long and comprehensive.
May 1, 2019
Quite good. Useful analytical methodologies clearly explained.
April 18, 2020
One of my favorite investing books.
December 9, 2021
7 out of 10
January 8, 2022
One of the best and most complete books regarding dividend investing.
July 19, 2022
not bad although the content doesn't justify the length. It could've definitely been made shorter.
February 14, 2020
Really not much of a new info. Estimated return calculation with author's own formula - this goes through second part of the text, without showing much of the alternatives. As it was published in 07, it praises shares such as GE as great long term investment...
Not totally useless though, here and there there are some good points made.
Not totally useless though, here and there there are some good points made.
April 22, 2008
This easy to understand guide to dividend investing first demonstrates the benefits of investing in dividend paying stocks compared to speculating on stocks to realize profits through capital gains (what the average day trader does, with middling results). I've read that the average day trader makes about $50 on each set of trades, and so just barely survives. Additionally, owning shares through mutual funds means having to pay fees to the fund managers. Direct ownership of stocks which pay dividends is the way to go. The book then goes about explaining an evaluative process for selecting stocks which pay not just the highest dividend (or greatest yield) but those which pay QUALITY dividends - those dividends both expected to rise, and reasonably certain to remain in the future. I'm very glad to have read this book as it gave me both the crucial insights into the benefits of dividend-focused investing, and an evaluative process with which to decide which dividend paying stocks are preferable.
August 18, 2012
As a subscriber to the author's Morningstar Dividend Investor publication, it was nice to see Peters have a chance to expand on his philosophies and strategies. The reader should be aware that Peters is not a get rich quick practitioner. He does not oversell and does not claim (as many of his competitors do) that he is the greatest investor of all time. Rather he humbly sets forth a strategy that involves purchasing dividend paying stocks where the stock appears to be undervalued, the dividend has been increasing and is supported by a favorable payout ratio, and prospects are good for continued growth (the companies generally have a decent "moat" separating them from competitors). This is a lifetime approach, not a fad of the week tactic. I highly recommend.
April 6, 2009
A great book about the benefits of dividend investing. The author is a major contributor to Morning Star and practices what he teaches in dividend investing. He may be a bit biased towards the benefits of dividend investing over other types of investments so that should be kept in mind. This book was written before the current crisis we're in occurred so this book is probably best read if your time horizon for investing is somewhat longer. (Measured in years, not months.)
September 2, 2008
As someone who's starting to think about shifting my investment style as I look toward retirement, I found this a really excellent review of how to invest for the purpose of maximizing a (safe) dividend flow.
October 6, 2008
Very solid advice on dividend investments.
January 30, 2012
One of the best books I've read on investing in dividend stocks.
Displaying 1 - 16 of 16 reviews