The Case for Dividend Growth: Investing in a Post-Crisis World

Written by David L. Bahnsen

Narrated by Walter Dixon

Both the tech bubble burst of 2000 and the financial crisis of 2008 poked significant holes in the primary investment belief of too many investors today-that one can just blindly withdraw from principal, and that equity returns will keep up. Too many investment advisors have taken the path of least resistance, not aware of the risk in systematically withdrawing from what, at times, will be a declining portfolio.

Investors seeking to accumulate money for their future needs and investors needing to withdraw money now for a present need both have one thing in common: Dividend Growth investing represents a powerful weapon in the achievement of their objectives.

Market volatility is not something any investor can escape, but benefitting from it (for accumulators reinvesting dividends) and being insulated from it (for withdrawers taking only from a growing flow of dividend income) are achievable results for those who understand the time-tested, sustainable, intelligent strategy of investing that is Dividend Growth.

• Language: English
• Publisher: Tantor Media, Inc
• Release date: Jun 23, 2020
• ISBN: 9781705237489

David L. Bahnsen

David L. Bahnsen is the founder, Managing Partner, and Chief Investment Officer of The Bahnsen Group, a national private wealth management firm with offices in Newport Beach, New York City, Minneapolis, Oregon, Austin, and Nashville managing over $4.25 billion in client assets. Prior to launching The Bahnsen Group, he spent eight years as a Managing Director at Morgan Stanley and six years as a Vice President at UBS. He is consistently named as one of the top financial advisors in America by Barron’s, Forbes, and the Financial Times. He is a frequent guest on CNBC, Bloomberg, Fox News, and Fox Business, and is a regular contributor to National Review. He hosts the popular weekly podcast, Capital Record, dedicated to a defense of free enterprise and capital markets.  David is a founding trustee for Pacifica Christian High School of Orange County and serves on the Board of Directors for National Review in New York City. He is the author of several bestselling books including Crisis of Responsibility: Our Cultural Addiction to Blame and How You Can Cure It (2018), The Case for Dividend Growth: Investing in a Post-Crisis World (2019), and There’s No Free Lunch: 250 Economic Truths (2021). David’s true passions include anything related to USC football, the financial markets, politics, and Chinese food. His ultimate passions are his wife of twenty-two-plus years, Joleen; their children, Mitchell, Sadie, and Graham; and the life they’ve created together on both coasts.

Reviews for The Case for Dividend Growth

[Ty DeLong · Rating: 5 out of 5 stars]

Very compelling case that investing in companies with growing dividends has both better returns and less volatility long-term than even whole-market or index investing. The chapter about how it buffers against inflation was especially insightful. The only way it could have been better would be with some real-world examples.

[Derek Brown · Rating: 5 out of 5 stars]

Bahnsen makes a compelling case for dividend growth investing. My takeaways: (1) Dividend growth investing allows you to monetize your risk (through quarterly cash payments) rather than compounding your risk with non-dividend-paying stocks that you eventually must sell in order to finally monetize the risk you took in owning the stock. (2) Dividend growth companies allow your yield on original investment to grow throughout the entire time you hold the stock. (3) Companies should be purchased based on a solid track record of sound fundamentals (revenue, cash flow, balance sheet) instead of speculation on a new company's potential performance. (4) Dividend consistency and growth are often reliable indicators of a company's overall financial health and the c-suite's alignment with stockholders. (5) Historically, dividend-growth stocks are less volatile than so-called growth stocks.

I highly recommend this book. - Derek Brown