The Ultimate Dividend Playbook

One of the best things you can do before you start investing – in dividend stocks or anything else – is to get some solid background. Before you begin dividend investing, you should read The Ultimate Dividend Playbook by Josh Peters, CFA. Peters is the editor of Morningstar DividendInvestor, so you know that he knows what he’s talking about. If you are interested in using dividends as part of your investing plan, you can get a handle on the process with the help of the Playbook.


Peters makes use the fictional Sally to illustrate many of his points, and help you learn how dividend investing can help you. Playbook is organized logically to help you learn concepts related to dividend investing. Peters starts out by introducing the idea of using stocks to make money, providing you with a regular income stream beyond just waiting for stock prices to increase over time. Then he takes a look at value and returns, as well as helpful hints on how to choose dividend stocks. You move through the book easily, with the next concept building on what you just learned.

Playbook provides useful information on different dividend models to help you evaluate stocks, and analyzes how to use them. Peters’ preferred model, the dividend drill, is an interesting way to consider your options. However, even Peters warns about some of the drawbacks associated with this model. Sometimes the analysis can get a little dry, but most of the time the information provided is educational and practical. If you can power through some of the less entertaining parts of the book, you will come away with solid information, and a better understanding. You might even be ready to develop your own dividend investing plan.

As you continuing reading through Playbook, you will learn about managing your portfolio, as well as receive Peters’ thoughts on the future of dividends. To further break topics down into easy to understand tutorials, there are seven appendices included with the book. You can get a more focused look at dividend payments, as well as the tax issues associated with dividend investing. Then, Peters shares targeted strategies for different types of dividend stocks: banks, utilities, REITs, energy partnerships, and other dividend opportunities are explored in turn.

If you are look for an overview of dividend investing, along with actionable information that you can use to improve your financial future and build an income producing