Dividends Still Don't Lie: The Truth About Investing in Blue Chip Stocks and Winning in the Stock Market [Hardcover]

Kelley Wright (Author)

Book Description

Publication Date: February 15, 2010

A timely follow-up to the bestselling classic Dividends Don't Lie

In 1988 Geraldine Weiss wrote the classic Dividends Don't Lie, which focused on the Dividend-Yield Theory as a method of producing consistent gains in the stock market. Today, the approach of using the dividend yield to identify values in blue chip stocks still outperforms most investment methods on a risk-adjusted basis.

Written by Kelley Wright, Managing Editor of Investment Quality Trends, with a new Foreword by Geraldine Weiss, this book teaches a value-based strategy to investing, one that uses a stock's dividend yield as the primary measure of value. Rather than emphasize the price cycles of a stock, the company's products, market strategy or other factors, this guide stresses dividend-yield patterns.

• Details a straightforward system of investing in stick-to-quality blue-chip stocks with reliable dividend histories
• Discusses how to buy and sell when dividend yields instruct you to do so
• Investors looking for safety and transparency will quickly discover how dividends offer the yields they desire

With Dividends Still Don't Lie, you'll gain the confidence to make sophisticated stock market decisions and obtain solid value for your investment dollars.

Editorial Reviews

From the Inside Flap

In 1988, Geraldine Weiss wrote the classic Dividends Don't Lie. That book detailed the dividend-value strategy behind Investment Quality Trends, the highly successful newsletter Weiss founded and Kelley Wright now edits. Today, more than twenty years later, the investment world has changed dramatically because of computer technology and the Internet. Tremendous amounts of data and information can be gathered, sorted, and analyzed in a matter of minutes, and what used to take weeks or months at a library can now be accomplished in one evening with a computer. What hasn't changed is the success of the dividend-value strategy for producing consistent gains in the stock market. Dividends Still Don't Lie shows how the stock market still rewards investors who recognize and appreciate good value.

Rather than emphasize price alone or a company's sector, products, or other analytical factors, the dividend-value strategy uses dividend-yield patterns to make buying and selling decisions. In simple terms: a stock is most attractive when it offers a high-dividend yield. As investors rush in to lock down the high yield, their buying pushes the price higher. Eventually the price reaches an area where the current yield is no longer attractive and buying stops. With no new buyers to push the stock price higher, the price begins to decline—and early investors sell and take their profits. Wright shows that, by understanding the historical dividend-yield pattern of a company, you will be better informed as to whether the stock offers much value, little value, or value that's somewhere in-between.

Four plus decades of research have shown that blue chip companies, those with long records of consistent, competent performance, are far more predictable than are upstarts or less established companies with erratic records of earnings and dividend payments. In short, the dividend-value strategy is a proven, commonsense approach that has ultimately led to long-term results. Dividends Still Don't Lie will show you how to master the stock market by successfully investing in high- quality, dividend-paying blue chip stocks.

From the Back Cover

"After all these years, I am pleased to note that dividends still don't lie."—from the Foreword by Geraldine Weiss, co-author of Dividends Don't Lie

Praise for DIVIDENDS STILL DON'T LIE

"In the coming years, there will be increased focus on income and dividends as Boomers look to turn their savings into retirement income. A solid grasp of dividends and how they work will be a basic requirement. Fortunately, Kelley Wright has updated the basic primer on dividends and their importance."—John Mauldin, Editor, Thoughts from the Front Line e-letter; author, Bull's Eye Investing

"Kelley's new book provides excellent information on critical investment value of stocks that pay dividends. This book should be read and studied by all serious investors."—Richard Russell, Editor, Dow Theory Letters

"Kelley Wright has taken the success strategy of dividends to a new level. In an age when many claim to have discovered a new path to Wall Street success, Kelley has refreshed and refined the value-based system that uses dividends as a guide to income and profits. A whole new generation of investors will benefit."—George Chamberlin, Editor, Investing for Rookies

"What a great update of a truly great book for investors! Kelley has done a terrific job for individual investors and also for our clients who are privileged to use Investment Quality Trends investment advisory services. Understanding what dividends can do for your portfolio is vitally important for investing over a lifetime."—James B. Jackson, Jackson Financial Services

"A must-read for every stock market investor. Dividends Still Don't Lie is the long awaited update on a tried-and-true discipline. This method tells you when a blue chip stock is undervalued enough to buy or overvalued enough to consider selling. For decades, Weiss and Wright have addressed huge audiences—and with good reason: dividends account for an increasing proportion of the stock market's total return. Don't invest without it."—Kim and Charles Githler, Co-Founders, MoneyShow

See all Editorial Reviews

Product Details

• Hardcover: 240 pages
• Publisher: Wiley; 1 edition (February 15, 2010)
• Language: English
• ISBN-10: 0470581565
• ISBN-13: 978-0470581568
• Product Dimensions: 9.3 x 6.6 x 0.8 inches
• Shipping Weight: 15.2 ounces (View shipping rates and policies)
• Average Customer Review: 4.4 out of 5 stars  See all reviews (8 customer reviews)
• Amazon Best Sellers Rank: #140,100 in Books (See Top 100 in Books)

More About the Author

Kelley Wright is Chief Investment Officer and Portfolio Manager at I.Q. Trends Private Client Asset Management. He is also Managing Editor of the Investment Quality Trends newsletter. Since 1989, Wright has been a private money manager and has served as Chief Investment Officer to three investment management firms. In 2002, he was handpicked by the legendary Geraldine Weiss to succeed her as Managing Editor of the number one rated Investment Quality Trends newsletter she started in 1966. Wright is an active lecturer nationwide at trade shows and investment conferences and a frequent guest on both television and radio.

Customer Reviews

Most Helpful Customer Reviews

10 of 10 people found the following review helpful:

4.0 out of 5 stars Better in print, March 11, 2011

By 

Jessica de la Montagne - See all my reviews

Amazon Verified Purchase

This review is from: Dividends Still Don't Lie: The Truth About Investing in Blue Chip Stocks and Winning in the Stock Market (Kindle Edition)

I purchased Dividends Still Don't Lie on Kindle. The concepts are clearly explained, and the rationale for investing in high-quality blue-chips is solid. The data are convincing, as presented in the text. The major flaw, and why I suggest buying the book in print rather than on Kindle, is that the figures and tables are virtually unreadable owing to the tiny size of the print. Even increasing the font size does not help, because the tables and figures are "photographs", not print, so it will not magnify.

I phoned Kindle Help-Desk and they were unable to resolve this difficulty. I tried downloading the Kindle version to my desk computer, only to find out that I could not print the tables or graphs for portable reference, e.g., beside a newspaper or a stock screen on the computer. Very frustrating!!! Kindle staff admitted that this was a problem that, to date (March 2011), has no solution. So yes, the content is good, but the Kindle version has major drawbacks.

29 of 35 people found the following review helpful:

5.0 out of 5 stars This Book Gets It Right!, February 17, 2010

By 

A reader from Chicago (Chicago) - See all my reviews

This review is from: Dividends Still Don't Lie: The Truth About Investing in Blue Chip Stocks and Winning in the Stock Market (Hardcover)

Kelley Wright knows his stuff and he gets it right with this book. He is at his best when he discusses how to create your own investment plan. In plain English, he shares how to follow the straightforward system of investing in stick-to-quality blue-chip stocks with reliable dividend histories. Individual investors and professionals alike will value the many examples that the author provides. The book will find wide appeal because of its down-to-earth and practical approach as well as the time-tested quality of the information. It is a great gift for anyone who wants to better understand investing as well as obtain solid value for their investment and retirement dollars.

12 of 16 people found the following review helpful:

5.0 out of 5 stars Wright Knows of What He Speaks, November 8, 2010

By 

Gregory McMahan (Tottori, Japan) - See all my reviews
(VINE VOICE)   

Amazon Verified Purchase

This review is from: Dividends Still Don't Lie: The Truth About Investing in Blue Chip Stocks and Winning in the Stock Market (Hardcover)

As a public service to my fellow hapless investor, who may be thinking of reading (if not actually buying, you cheap ------d!) this gem of a little book, I have a few brief words of sage advice to impart to you.

First, read the book, cover to cover. Thankfully, it is a light, fast read, that at times is a bit on the repetitive side, but nonetheless very informative. Then set it aside for a week, during which time you allow your first impressions of the book to subside, and then read it again. After the second reading, put the book aside but in a prominent place, such as facing out to you on your bookshelf or on your desk, where you can see the title almost beckoning to you. Then, and this is the hard part, do the following:

Do what you normally would do when investing. If you are like most people, you'll lose money. That's OK, after all, you are only human and this state of affairs not only confirms that but also confirms that like your fellow man (or woman- it pays not to discriminate), you have absolutely no idea what you are doing. Then, one day, after having lost a tidy sum of money, this book will beckon you, and then, maybe, just maybe, you will see the light, and glean from it its carefully gathered wisdom over some four decades or so. You might be so taken aback by its very simplicity that you take the heretical step of subscribing to the Investment Quality Trends newsletter.

OK, all jokes aside now- for those of you who are sick of losing money in the stock market, or just plain tired of middling results in return for all of your effort and study of the market, this is the book you need to read and ultimately use in your quest to 1) preserve your limited and precious capital, 2) generate a respectable income and 3) grow your investment account. Whether you are in retirement and looking to protect what you have amassed, or you are young (or young-ish) and looking to invest for an eventual retirement (in this economy?!? Good luck with that.), this is the book you need to buy, read, understand, and use- repeatedly.

For seasoned investors like myself, the book may read a bit too simple and too basic (this I suspect may be due to the fact that the book is pitched moreso to the novice or beginning investor that is unsure of him- or herself vis-a-vis stocks). More than a few of you will take issue with how restrictive the stock universe that it inhabits is. All of you need to trust me on this one thing: using this book will keep you out of serious trouble (by minimizing your risk in stock investing and protecting your modest grubstake), and for those of you who find the book to be too restrictive in terms of the number of stocks to choose from, pay very close attention to Chapter 4 of the book, modify Chapter 4 a bit to suit your needs, and broaden the list of likely stock investment targets.

The method espoused in the book really is as simple as the author makes it out to be. In passing, I have found this book, along with The Future For Investors by Jeremy J. Siegel (author of Stocks For The Long Run), to be good, strong, positive reinforcement.

Here are a few final free-bies: Using this book as a guide (and perhaps a subscription to the IQT newsletter- no pressure from me here), screen for the truly indispensable outfits. Then, dollar cost average into them. Do this preferably via some tax-advantaged account (IRA of some sort in a pinch, but ideally a 401-k type deal if you have it available to you). And for the coup-de-gras, I noticed that more than a few of the outfits that make the Wright-Weiss cut for quality and value offer direct stock purchase plans with optional cash purchases of as little as 50 bucks in some cases (some even offer IRAs). The truly intelligent and astute small investor would take advantage of this wherever possible (in a pinch, a Sharebuilder account would suffice)- just be mindful of the paperwork, which will require the use of a spreadsheet and a modicum of organization. Oh, and one more thing, since the outfits chosen are indispensable, you never have to sell them (unless of course, their investment quality has fundamentally eroded) and you can value-cost-average (buy on the dips) at your leisure as well. Check out Craig L. Israelsen's lovely little book, The Thrifty Investor (an older and somewhat dated but nonetheless very relevant text), for further enlightenment on these free-bies.

In sum, you can either work for your money, or you can put your money to work for you. Granted, if you are like most of us, you have to work for- that is to say, earn- your money, so it behooves you to put your hard-earned money to work using a safe and sound strategy that thankfully, this book provides.

As always, caveat emptor people. Caveat emptor.