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High dividend stock plays

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Does anyone have recommendations for high dividend stock plays? I am using this type of strategy in my IRA, trying to keep it risk neutral with hedges, and just hold stocks that pay bigger dividends for growth.

Finviz has a nice scanner which I use for my swing trades. Dividends can be scanned for, but it isn't great because it isn't sortable by dividend.

Stock Screener - Overview high



If anyone has a better recommendation for dividend scanner, let me know. One big plus with Finviz is the ability to mouse over a symbol and get a chart preview, and be able to see side-by-side analysis of the instrument and its sector.

My strategy has been to be long dividend stocks and hedge through short ETFs (permissible in an IRA) to try and be risk neutral.

If anyone has suggestions, I'd like to hear them.

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Mike, after screening for dividend yield (on your attached image), try click on Financial tab instead of Overview tab (in middle of screen) and then click on header Dividend for sorting value up/down.

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Nokia (NOK) pays a dividend yield of 9.5%.


In spite of losses, Nokia still has a strong balance sheet, with more than $20.2 billion in cash and only $6.1 billion in long-term liabilities and debt. Free cash flow has also been strong for the entire decade, which could make them a takeover target.

Sales of their Windows based Lumia Smart Phone could significantly affect their bottom line with the release of Windows 8.

To put things in perspective .... you could have bought Ford (F) in 2008 for $1.00 which went to $20 before pulling back to $9.21 Friday.

But then again ..... you may win the Balls of Steel award for taking a position in Nokia with a current share price of $1.71.



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asfax View Post
Mike, after screening for dividend yield (on your attached image), try click on Financial tab instead of Overview tab (in middle of screen) and then click on header Dividend for sorting value up/down.

Awesome, I didn't realize that!

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Source: Bespoke Investment Group - Think BIG - How Rising Rates Make Dividend Stocks LessAttractive


Quoting 
The recent rotation out of defensive sectors has been especially painful for holders of high dividend paying stocks. As we noted yesterday, the Utilities sector, which is generally considered the highest dividend paying sector in the market, is not only the sole sector currently not trading at overbought levels, it is also the only sector trading below its 50-day moving average!

So how come two weeks ago investors couldn't get enough of high dividend paying Utilities stocks, but now they want nothing to do with it. The answer lies partly in the fact that as interest rates rise, dividend paying stocks become less attractive to what are considered safer alternatives. Take the 10-year US Treasury, for example. Three weeks ago, the 10-year had a yield of 1.38%. At the time, more than 60% of the stocks in the S&P 500 had a higher yield than the 10-year. Since that time, the yield on the 10-year has risen to 1.8%. As a result of the rising yield on the 10-year, there are now 47 fewer stocks in the S&P 500 that yield more than the 10-year (266). Furthermore, if the yield on the 10-year rises to 2%, less than half of the stocks in the index will have a higher yield.

The chart below highlights this trend and illustrates the fact that as interest rates rise, fewer stocks will look more attractive relative to Treasuries. Granted, there are other factors that go into an investor's decision, but expected income from an investment is a large factor in the decision. In the case of slow growth defensive stocks like Utilities, this takes on an even larger role. While a Utilities stock with a yield of 1.75% may have had a 26% higher yield than a 10-Year Treasury three weeks ago, today it looks a lot less attractive with a payout that is 4% below the yield on the 10-Year.



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Source: Bespoke Investment Group - Think BIG - August -- Another Bad Month for DividendStocks


Quoting 
The average stock in the S&P 500 gained just over 3% in August. But there was a pretty big discrepency in performance between high yielders and low or no yielders. Below we have broken the S&P 500 into deciles (10 groups of 50 stocks each) based on dividend yield. We then calculated the average performance of the stocks in each decile during the month of August. As shown, the decile of the highest yielding S&P 500 stocks rose an average of just 0.62% in August. Conversely, S&P 500 stocks that pay no dividend rose an average of 5.45%! A few months ago, investors couldn't get enough of high dividend payers. Now they want nothing to do with them.



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NAME
PowerShares KBW High Div Yield Financial Port KBWD 89.21 -0.25 0.71 1.44 7.85 7.69 27.30 2m

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These have been up in the 15% to 20% range in the last year.



PowerShares KBW High Div Yield Financial Port KBWD
iShares High Dividend Equity HDV
WisdomTree Small Cap Div DES
Vanguard High Dividend Yield ETF VYM
WisdomTree LargeCap Dividned DLN
WisdomTree Total Dividend DTD
FirstTr Morningstar Dividend Leaders FDL
WisdomTree Dividend Top 100 DTN
iShares Dow Jones Select Dividend Index Fund DVY
PowerShares High Yield Equity Dividend Achievers Portfolio PEY
PowerShares Div Achievers Port PFM
Vanguard Dividend ETF VIG

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I did well with TNH

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Here's a site that may be of use to long term dividend investors.

Dividend Reinvestment Calculator

For Canadian stocks you have to add the “.TSX”

US stocks just enter the sysbol

BMO = BMO.TSX

AGF.b = AGF-B.TSX

BYD.un = BYD-UN.TSX

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this is a very useful site for me....thanks

Unless I am doing something wrong though I cannot look at the return of a stock's dividend for the period that I have held it...I can only look at it from the point at which it first starts.

wait a minute...perhaps it is because I chose a start date when I bought the stock....not the first dividend date from my purchase.

5 mins later...

That was it!! you cannot chose just a random date...it has to start on a dividend payment date

What a great tool for me!!!! I owe you a beer

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I don't have any problem with different start dates.


FP,TSX for instance shows a different return depending on whatever date you input.

The only problem I found was the income trusts that converted back don't show much data.

"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
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well it was that way for me....try CPG.TSX from Jan 1 2013 and you will get a message to select a new start date and no data....enter Jan 15 2013 and it works

I have had Riocan for a long time but it won't accept it's stock symbol REI/UN or REI.UN .... aha!!! it is REI-UN.TSX

that works

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Underexposed View Post
well it was that way for me....try CPG.TSX from Jan 1 2013 and you will get a message to select a new start date and no data....enter Jan 15 2013 and it works

I have had Riocan for a long time but it won't accept it's stock symbol REI/UN or REI.UN .... aha!!! it is REI-UN.TSX

that works

I'm guessing that Jan 1 is a holiday so there is no quote for that day. Jan 2 works.

"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
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I'm guessing that Jan 1 is a holiday so there is no quote for that day. Jan 2 works.

that must be it.

the site is not documented very well and I ran some tests to see if I could match the results they were getting.... and I could not.

So I sent a message to them to ask for clarification on some things and this is what I found

1. the calculations work very much like you are running a DRIP on your dividend paying stock

So say you were investing $10,000 (entered into the BOXyou are now worth

2. So say the stock was worth $9.25 a year ago and paid $0.12 monthly as a dividend. So with $10,000 and shares costing $9.25 you would have purchased 10,000/9.25 = 1081 shares and had $0.75 left over

3. at the end of the first month you would have $0.12 x 1081 = $126.24 in dividends + $0.75 = $126.99

the shares then are worth $9.35...so you would buy $126.99/9.35 = 13 shares and have $6.09 left over.
The new shares are added to the 1081 previous shares, so now you have 1094 shares

4. at the end of the second month you would have $0.12 x 1094 = $131.28 in dividends + $6.09 = $137.37

this time the shares fell in value to $9.00...so you would buy $137.37/9.00 = 15 shares and have $2.37 left over.
The new shares are added to the 1094 previous shares, so now you have 1109 shares.

and so on for the months of the year

the number of shares are increasing as the dividends are being converted to new shares and added to the previous totals....so you are in fact COMPOUNDING your dividends

the value of the 10,000 initial investment is calculated by determining the value of the shares you now hold at the end of the period.

I am currently running a test on Canadian dividend paying stocks here are some of the results I have gotten:



so you can see what would happen if you invested $10,000 on a particular stock 5, 2, 1 year ago.

ATR is the Annualized Total Return

I owned Automodular [TSX:AM] for a while a couple of years ago and did well on it for a year...they make diecast metal parts for the Automobile industry...I sold the stock when they lost their sugar daddy contract with Ford....I never had a tool like this and it clearly shows I should have reinvested the dividends and held on.....the reinvested dividends + capital gains still produce 42% in the last year....wow...I forgot about them



I guess that Ford contract did not mean a heck of a lot in retrospect....

AND THEY SAY $1 -$5 stocks are a waste of time....

I am going to continue this analysis and see what other gems pop up....

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1. the calculations work very much like you are running a DRIP on your dividend paying stock

Unfortunately I spend my dividends.

"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
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Unfortunately I spend my dividends.

So have I in the past....But with the use of this tool I am rethinking this practice....especially in something like a TFSA or RRSP

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So have I in the past....But with the use of this tool I am rethinking this practice....especially in something like a TFSA or RRSP

I never liked DRIPs; always thought I could find a better entry than the day the dividend was paid. That being said I usually reinvested my dividends in whatever stock I thought would do better rather than in each individual stock. Probably the wrong move but it gave me a semblance of control.

"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
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I think that this article and conclusions are very misleading.

They are looking at only one aspect of comparison of high yielding dividend stocks and Non-yielding stocks...that is share price appreciation. You are not supposed to buy the High yield stocks for the share price appreciation ... that is the bonus bubble,

High yield dividend stocks are a buy and hold stock for the money it generates....IF you reinvest those dividends back into the stock you are essentially compounding the "dividend".

As you can see in my previous post showing the effects of this compounding on Canadian dividend stocks over time this can generate yields far above the 5% they tout. The KEY is reinvestment of those dividends back into the stock...thereby increasing the dividend payment with time and increasing the capital gain through acquiring more stock.

Salted away in a tax sheltered account makes a lot of sense to me.

I am going to pursue this further...

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Be aware of the after tax returns when considering dividends from Canadian stocks. The dividend tax credit takes into consideration the taxes already paid on the dividends you receive.

I not sure but I think US dividends are subject to a withholding tax in a TFSA.

I use the ETF SDOG in my RRSP.

"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
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Be aware of the after tax returns when considering dividends from Canadian stocks. The dividend tax credit takes into consideration the taxes already paid on the dividends you receive.

I not sure but I think US dividends are subject to a withholding tax in a TFSA.

I use the ETF SDOG in my RRSP.

that is why you shouldn't mix US stocks into a TFSA or RRSP if you are a Canadian investor. I have a separate US Dollar stock portfolio for any American stocks I purchase and I do not invest in US dividend stocks for that reason.

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I have a lot of questions as to the accuracy of the "Reinvestment calculations" of that website.

I discuss this in some detail in my journal in post #220



However in summary consider a graphic of three calculations



Does it make sense to you that a $100,000 investment should have the same % gain as a $1000 investment when the dividends are reinvested?

$1,000 of JPM stock in an entire year does not generate enough accumulated dividends to buy a single JPM stock

$100,000 of JPM stock generates enough money in dividends for about 14 new shares of JPM each quarter...when in turn would generate more dividends each succeeding quarter

So the investment yield after one year for $100,000 should NOT be a simple 100x multiple of an investment of $1,000 of the same stock.

Doesn't that make sense??? Seems obvious to me.

So far they claim their calculations are correct...without revealing their calculation algorithm.

AM I missing something here????

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Doesn't that make sense??? Seems obvious to me.

So far they claim their calculations are correct...without revealing their calculation algorithm.

AM I missing something here????

If you sign up with the Company for the DRIP you will receive partial share and be paid dividends on part shares. There is usually an initial fee in the 50 dollar range to register but it depends on the Company.

When I started investing years ago I had DRIPs with several US companies that also allowed you to buy additional shares without brokerage fees.

"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
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that is why you shouldn't mix US stocks into a TFSA or RRSP if you are a Canadian investor. I have a separate US Dollar stock portfolio for any American stocks I purchase and I do not invest in US dividend stocks for that reason.

There is no withholding tax in a RRSP because of the tax treaty. However the DRIP program only buys whole shares.

TFSA isn't treated the same. I have US stocks in the TFSA but only for Capital Gains.

"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
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If you sign up with the Company for the DRIP you will receive partial share and be paid dividends on part shares. There is usually an initial fee in the 50 dollar range to register but it depends on the Company.

When I started investing years ago I had DRIPs with several US companies that also allowed you to buy additional shares without brokerage fees.

that might happen in the USA but not in Canada.

My experience with DRIPS is

1. On dividend payout day, I was given the dividend in cash
2. at some time in the future (usually 3-7 business days) I would get the shares in that company to a highest whole number deposited into my account with the cost of those shares subtracted from the cash-on-hand.

eg. If the total dividend on a company with a share price of $10 was $110.00, I would be credited with the $110.00 first....then I would be given 10 shares @ $10 each and $100 would be subtracted from my account for these shares.

there were no commissions paid and sometimes I got a bonus 1 or 2 percent off the normal share price...so in this case I would gain 10 new shares Plus the residual $10 from the dividends of $110.00

I find it interesting as to how difficult sometimes that the US market is compared to the Canadian market...especially when it comes to taxes.

Who in the heck is going to purchase a partial share when you want to sell...to the partials add up from successive quarterly payments? A very needlessly complicated system IMHO

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Did you have the shares registered with the company or with a broker?

It was years ago when I dripped. I believed I had CP, Northern Telicom(before it became Nortel) and a couple others. Partial shares were issued, and dividends were paid on partial shares. When you wanted to sell the company would redeem your shares. This was back in the 80s, Commisions were 3% with a minimum of $50 thru a broker so buying shares on a DRIP and being able to buy a set dollar amount each quarter made a lot of sense for an investor with limited funds to invest at that time.

I don't know if those option are available today.

"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
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Did you have the shares registered with the company or with a broker?

It was years ago when I dripped. I believed I had CP, Northern Telicom(before it became Nortel) and a couple others. Partial shares were issued, and dividends were paid on partial shares. When you wanted to sell the company would redeem your shares. This was back in the 80s, Commisions were 3% with a minimum of $50 thru a broker so buying shares on a DRIP and being able to buy a set dollar amount each quarter made a lot of sense for an investor with limited funds to invest at that time.

I don't know if those option are available today.

I described what happened...it may be a TD Waterhouse procedure...I cannot say what happened at other brokerages but...I received the complete dividend in cash...then in a few business days the shares appeared in my account...the price was AT MOST what the closing price on the day the dividends were issued and often at a 0.5 - 1.0 % discount...no partial shares issued the partial share value remained as cash.

So it was like you were issued the dividend for which you were taxed but you turned around and purchased shares in the company sometimes at a discount (depending on the company) and always commission free.

A rather simple method of performing the DRIP...the only thing that bothered me is that sometimes it took 3 days...others it took 10 days to actually get my shares....that delay bugged me...even though I had the money early enough....I always wondered if the shares would show up.

BUT THAT IS NOT THE ISSUE HERE....Does it make sense to you that an investment of $1,000 in JPM which generates not enough dividends in an entire year to buy ONE JPM share in reinvestment....have exactly 1/100th the final value of a $100,000 investment in the same stock receiving enough dividends every quarter to purchase about 14 stocks every quarter which produce even more dividends.

The $100,000 investment SHOULD produce more than 100x revenue at the end of the year compared to the $1,000 due to the additional shares generated....It seems obvious to me but that is not what their calculations show

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Quoting 

BUT THAT IS NOT THE ISSUE HERE....Does it make sense to you that an investment of $1,000 in JPM which generates not enough dividends in an entire year to buy ONE JPM share in reinvestment....have exactly 1/100th the final value of a $100,000 investment in the same stock receiving enough dividends every quarter to purchase about 14 stocks every quarter which produce even more dividends.

The $100,000 investment SHOULD produce more than 100x revenue at the end of the year compared to the $1,000 due to the additional shares generated....It seems obvious to me but that is not what their calculations show

Yes it makes sense it the shares are registered in your name and you hold them. Not registered in the brokers name and held in your account. You do the DRIP thru the company's stock transfer agent. That way you are able to receive partial shares and be paid dividends on partial shares.

In my experience shares were issued on the day the dividend was paid,usually at the closing price.

There is a fee to get the broker to issue the share certificates to you. $40 - $50 range. When you want to sell, the transfer agent will redeem the shares they hold and you will have to get the shares you hold to your broker. (that entails taking the share certificates to the brokers office or bank branch and signing them into your brokerage account). This process can take several days.

Some companies also allow you to contrbute additional cash each quarter. Some will sell shares at a discount.

You can also join the Canadianshareowners association and do the same thing with a basket of shares but I found DIY to be less expensive.

It is a great way to make the power of compounding work for you if you are a long term buy and hold investor.

"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
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  #30 (permalink)
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I give up....You have a great talent for not responding to my ISSUE...forget it.

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I give up....You have a great talent for not responding to my ISSUE...forget it.

I thought your issue was that you have to buy one share.
It is possible to buy partial shares and be paid dividend on partial shares.
Therefore the return on $1000 and on $1000000 will be the same percentage wise.

"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
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I thought your issue was that you have to buy one share.
It is possible to buy partial shares and be paid dividend on partial shares.
Therefore the return on $1000 and on $1000000 will be the same percentage wise.

your reading comprehension is lacking.

On running the test summing partial shares you are correct...and I was wrong

But the way I am familiar with how Drips work...which from a tax perspective is much easier to deal with and also I own the shares they are not kept track of elsewhere...I am correct.

In Canada, I don't think you can buy or sell a fraction of a share...at least with TD Waterhouse the broker I use.

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your reading comprehension is lacking.

On running the test summing partial shares you are correct...and I was wrong

But the way I am familiar with how Drips work...which from a tax perspective is much easier to deal with and also I own the shares they are not kept track of elsewhere...I am correct.

In Canada, I don't think you can buy or sell a fraction of a share...at least with TD Waterhouse the broker I use.

Take a look at

Canadian DRIP Primer

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Back to the OP.

SDR and SDT look good to me. Pays 30.91% and 45.58% respectively. From what I gathered from the tax forms these are both set up to last until 2030 or so. I will say that I have little to no idea what I am doing though. Why these are trading under 10$ is beyond me. Are people that afraid of taxes? Is it oil price or the estimated future of these wells they have royalties to?
Answers to the questions would be appreciated.

As for the screener Merrill edge has a good one but I think you have to have your account there to use it. Lots of options to sort through. Same mouse over summary thing.

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Hello guys, I would like to buy some stocks for long term investment. I would like to create dividend based portfolio over time as secondary source of invome for my family in case I die or something. Well my father died when I was a boy, but dividends out of his shares helped my mother a lot.

My question - is there some kind of books, education, videos, anything good on this topic? I was thinking about buying shares with good dividends while they are low and depending on how company do over time to keep them "forever" or sell them after first dividend. But its a wild guess and I bet many people tried that before and I want all the info I can get

Also, do you collect dividends personally (Maybe we in Czech Republic live in stone age, but here we colledct dividens personally from companies, you send them your bank account number and they send the dividend), or you have portfolio manager?

"Life is willingness to die."

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My question - is there some kind of books, education, videos, anything good on this topic?

I have a book called The Naked Trader. It's geared for the UK stock market but I'd say the principles of stock picking in the book can be applied to any country. I consider it a pretty good read.


Quoting 
Also, do you collect dividends personally (Maybe we in Czech Republic live in stone age, but here we colledct dividens personally from companies, you send them your bank account number and they send the dividend), or you have portfolio manager?

Again, in my experience of a UK-based account, the dividends are paid directly into your dealing account and then you can either withdraw or reinvest as appropriate.

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I have a book called The Naked Trader. It's geared for the UK stock market but I'd say the principles of stock picking in the book can be applied to any country. I consider it a pretty good read.

Again, in my experience of a UK-based account, the dividends are paid directly into your dealing account and then you can either withdraw or reinvest as appropriate.

Awesome, thanks for tip. I plan on having non-czech broker anyway, so I think it will work in the same way. But I plan on having a couple of Czech shares and since we have only 15% taxation I dont want to route dividends thru foreign broker and then have trouble with double taxation, so this direct method suits me well for local shares. It would be silly tho to do this in case of US companies for example.

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Mlok View Post
Awesome, thanks for tip. I plan on having non-czech broker anyway, so I think it will work in the same way. But I plan on having a couple of Czech shares and since we have only 15% taxation I dont want to route dividends thru foreign broker and then have trouble with double taxation, so this direct method suits me well for local shares. It would be silly tho to do this in case of US companies for example.

You should not have trouble with double taxation: the broker knows your Czech, or German or whatever, your dividend earnings won't be routed to another country where you're unknown for them.

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My question - is there some kind of books, education, videos, anything good on this topic?

https://www.thedividendpig.com/dividend-investing-books/

"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
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