In times of economic uncertainty and market volatility, sound financial advice is more valuable than ever. Greg Donaldson’s book THE HIDDEN POWER OF RISING DIVIDENDS offers readers just that: timely wisdom and proven strategies for navigating the challenges investors face today. Drawing upon decades of experience as a professional money manager and the hard-won lessons of major market upheavals, Donaldson makes a compelling case that a portfolio focused on high-quality companies with a history of consistently growing their dividends is one of the most reliable paths to long-term financial prosperity.
The book begins with Donaldson giving his personal recollection of what history remembers as Black Monday: “By the time I arrived at work on Monday, October 19, 1987, I already knew it was going to be unlike any other day of my life.” It’s a statement that foreshadows the profound impact the day would have on Donaldson, as he later reflects, “The devastation of Black Monday snuffed out most of my illusions about investing.” Donaldson then dives into the story of Mildred Hagedorn, who, along with her husband, built a successful farming operation in southern Indiana and western Kentucky. Despite the market chaos on Black Monday, Hagedorn surprised Donaldson by asking to buy more stocks. She explained that she and her husband had accumulated thousands of acres of prime farm ground by buying when everyone else was selling, a strategy that eventually resulted in large gains. This encounter, along with a few other pivotal conversations that day, set Donaldson on a path to discovering the hidden power of rising dividend stocks and laid the foundation for a new investment approach that would define his career.
According to Donaldson, the strength of this new approach (The Rising Dividend strategy) is in its simplicity: “we buy companies that are increasing their dividend every year. Dividends matter more than I could have imagined. And rising dividends seem to be the best predictor of success within these higher-dividend-paying stocks.” Donaldson goes on to explain that this strategy can reward investors with a combination of income, capital appreciation, and lower volatility compared to the overall stock market. Ultimately, The Rising Dividend strategy is designed to be a more conservative approach for investors looking for stability and long-term growth than those quick and easy short-term gains.
Donaldson undoubtedly makes a compelling and evidence-based case for his approach, but even the most cogent of arguments runs the risk of getting lost in translation. To that point, THE HIDDEN POWER OF RISING DIVIDENDS reads less like a how-to guide and more like a free-flowing memoir, transforming an admittedly dry topic into something a bit more digestible. Donaldson’s tone is consistently conversational, and while he clearly is speaking from a position of experience, he tends to avoid pontificating. Those without a basic understanding of investment terminology and general practices may need a moment to catch up to speed, but Donaldson makes a point to offer context when necessary. For instance, when relaying that the Rising Dividend Cornerstone strategy was recently awarded a five-star investment ranking, he wisely adds, “This was Morningstar’s top ranking and was highly sought after in the investment management industry.” This sort of approach, coupled with the constant infusion of personal anecdotes, makes for a compelling (and, most importantly, relatable) read from cover to cover.
With THE HIDDEN POWER OF RISING DIVIDENDS, Greg Donaldson draws upon his decades of experience and the lessons learned from the 1987 stock market crash, offering readers a relatable and accessible guide to achieving long-term financial security through a conservative investment approach.
~James Weiskittel for IndieReader