5 Takeaways from “The Dividend Mantra Way”

“The Dividend Mantra Way” by Jason Fieber targets the FIRE movement crowd. FIRE stands for Financial Independence Retire Early.

However, dividend investing is a much different investment style than most FIRE movement people choose. Most FIRE people use passive investing via index funds to save for retirement.

Once they hit a target amount, they attempt to use the 4% rule to withdraw from their nest egg. Dividends operate much differently.

With dividend growth investing, you aim to build a portfolio of blue-chip stocks that increase dividend payouts over time. Using dividends, you will not have to sell shares of your companies to fund your lifestyle.

This book goes into great detail on how to choose these blue-chip dividend-paying corporations. If you can increase your savings rate, you will be able to retire much earlier than most people. 

1) Your savings rate is the most significant predictor of how soon you can retire. Saving 50% or more of your income will quickly generate great returns.

2) You must re-evaluate your lifestyle to increase your savings rate—question yourself on your car, house, vacations, and entertainment spending. 

3) Living below your means is a great way to increase your savings rate, and another way is to increase your income. You will see magical money in your account if you can do both.

4) “Price is what you pay; value is what you get.” This is a quote from Benjamin Graham referring to the price of stocks. If you can buy excellent stocks at extraordinary prices, you build a margin of safety.

5) “Never invest in an idea you can’t illustrate with a crayon” is from Peter Lynch. Only invest in companies you understand. You can’t form a great investing thesis if it is too complex.

Dividend growth investing is only for some because time is the essential multiplier. You’ll need time for your money to compound on top of itself.

However, the journey as a DGI investor is just as wonderful as the dividends. You must learn so much about yourself to be a DGI investor.

Your spending and savings habits are the most crucial part of building wealth. This book does a wonderful job of explaining the entire DGI lifestyle, not just how to buy stocks.

If you are new to dividends and DGI, this book will motivate you to keep going. If you know nothing about investing, this book walks you through picking great stocks. It’s an excellent book for those looking to set themselves free.

This link is to a physical product. The link above is to the digital book. Sorry. I get no credit for digital product links.