Today, we’re curating a list of the 7 best books on dividend growth investing.
Dividend growth investing isn’t flashy.
It usually doesn’t make headlines like the latest tech startup or cryptocurrency. But you know what it does do? It works. For anyone looking to build lasting wealth and a steady stream of income, it’s one of the most reliable strategies out there.
The concept is simple: invest in companies that not only pay dividends but grow those dividends consistently over time. It’s like planting a tree that keeps bearing more fruit every year. But where do you even begin learning this art? Start with the right books.
The best books on dividend growth investing are packed with wisdom, practical strategies, and real-life examples to guide you toward financial independence. So let’s get started!
Why People Love Dividend Growth Investing
“Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.”
John D. Rockefeller, World’s 1st Billionaire
Dividend growth investing is the ultimate blend of simplicity and compounding magic. It’s like planting a tree that not only grows taller over time but also produces more fruit each year—fruit you can eat, sell, or reinvest to grow even more trees.
To see this in action, let’s look at the Vanguard S&P 500 ETF ($VOO). Suppose you invested $10,000 in VOO back in 2014 when the share price was about $200. This investment would have bought you 50 shares. That year, VOO paid a total dividend of $3.49 per share, giving you an annual income of $174.50.
Fast forward to 2024. Those same 50 shares now yield dividends of around $6.70 per share. Your annual income? A solid $335.00—nearly double what you earned a decade ago. And remember, this is without adding more money or considering the massive appreciation in VOO’s share price during this period.
This is why people love dividend growth investing—it’s reliable, predictable, and rewarding. Every dividend payment reinvested becomes an agent of compounding, buying more shares, which earn more dividends, creating an upward spiral of wealth.
Even better, companies that consistently grow their dividends are usually financially sound, with a track record of success and shareholder focus. Holding these stocks can provide a sense of stability during market turbulence, acting as a financial life jacket when storms hit.
Dividend growth investing is less about chasing quick returns and more about building a system that works for you over the long term. As the dividends grow, so does your confidence. It’s the closest thing to “set it and forget it” investing that still keeps rewarding you for years to come.
Best Books on Dividend Growth Investing
1. The Ultimate Dividend Playbook by Josh Peters
Josh Peters, a Morningstar analyst with a knack for making complex ideas simple, delivers a comprehensive guide to dividend growth investing. He walks you through how to identify companies with sustainable dividends and, more importantly, how to avoid common pitfalls like chasing sky-high yields that aren’t backed by solid business fundamentals.
Why Read It? Peters doesn’t just tell you what to do; he teaches you the why behind it. His clear, actionable advice makes this book a must-read for both beginners and seasoned investors.
2. Dividend Growth Machine by Nathan Winklepleck
Nathan Winklepleck’s book is like sitting down with a friend who knows a lot about investing and wants to help you succeed. It’s written in plain English and focuses on how to build a portfolio that balances risk and reward while leveraging the power of compounding dividends.
Why Read It? This book is perfect if you’re just starting out. Winklepleck keeps things simple and emphasizes how small, consistent steps can lead to financial independence.
3. Get Rich with Dividends by Marc Lichtenfeld
Marc Lichtenfeld introduces his 10-11-12 system, a practical framework for achieving significant income through dividend growth investing. The system focuses on selecting stocks that grow their dividends year after year, and the book dives deep into why patience is critical in this game.
Why Read It? Lichtenfeld’s structured approach helps you take the guesswork out of stock selection. It’s a roadmap for turning dividend growth investing into a reliable wealth-building strategy.
4. The Single Best Investment by Lowell Miller
Lowell Miller’s classic book combines the best of two worlds: income generation and capital appreciation. He focuses on high-quality companies and a disciplined investment strategy that prioritizes steady growth over quick wins.
Why Read It? If you’re looking for a balanced, long-term approach to investing, this book is a goldmine of insights.
5. Dividends Still Don’t Lie by Kelley Wright
Building on Geraldine Weiss’s groundbreaking work, Kelley Wright explores how dividend trends can help identify undervalued stocks. The book updates classic strategies with modern tools and data, making it relevant for today’s investors.
Why Read It? Wright’s focus on dividend trends as a stock selection tool is both unique and effective. It’s a masterclass in combining timeless principles with current market realities.
6. The Little Book of Big Dividends by Charles B. Carlson
Charles Carlson’s book is a quick and accessible guide to identifying high-quality dividend-paying stocks. It’s packed with practical advice, including how to create a diversified portfolio and maximize returns without taking unnecessary risks.
Why Read It? Its simplicity makes it ideal for anyone looking for actionable tips without getting bogged down in technical jargon.
7. Dividend Growth Investing: Get a Steady 8% Per Year Even in a Zero Interest Rate World by Joey Thompson
Joey Thompson’s book tackles the challenges of investing in a low-interest-rate environment. He offers a step-by-step guide to building a portfolio that generates reliable income, even when the broader economy feels shaky.
Why Read It? This book’s practical advice is tailored for modern investors navigating today’s market conditions.
Key Lessons from The Best Books on Dividend Growth Investing
What sets the best books on dividend growth investing apart is their ability to simplify complex concepts and make them actionable. Here are some of the most powerful lessons these books teach:
- Quality is non-negotiable: The best dividend-paying companies are financially sound, have a history of increasing payouts, and are leaders in their industries. Lowell Miller and Josh Peters both emphasize this. Don’t settle for anything less.
- Patience drives success: Dividend growth investing isn’t a get-rich-quick scheme. It’s about staying the course and letting the magic of compounding do its job. Authors like Marc Lichtenfeld stress the importance of long-term thinking.
- Reinvest for growth: Reinvesting dividends is how you turn a trickle into a waterfall. It’s not just about income today but about building wealth for tomorrow. Many books on this list highlight how reinvested dividends compound your returns over time.
- Focus on sustainable growth: High yields can be tempting, but they’re often unsustainable. Instead, look for companies with steady, incremental dividend increases. Kelley Wright’s insights are invaluable here.
- Stay disciplined: Markets will fluctuate, but the principles of dividend growth investing remain consistent. These books remind us to stick to the plan, even when emotions run high.
These lessons aren’t just theoretical—they’re the foundation for building a portfolio that can weather market storms and grow steadily over time. By applying these insights, you’ll not only build wealth but also gain peace of mind knowing your strategy is rooted in proven principles.
Final Thoughts
Dividend growth investing isn’t about quick wins or chasing the hottest trends. It’s about building something durable—a financial foundation that provides both growth and income for the long haul. These best books on dividend growth investing are your toolkit for mastering this approach.
Start with one, take notes, and most importantly, take action. Remember, the sooner you start planting those dividend trees, the sooner you’ll be enjoying their shade.
Your financial future will thank you.
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