Two words…dividend investing. I am not sure when I stumbled upon the dividend investing strategy, but stumble upon it I did, which lead me to the Lazy Investor by Derek Foster. It is a really straight forward book about Dividend Reinvestment Plans (aka DRiPs or DRiPing) and Stock Purchase Plans (aka SPP) also also referred to as Optional Cash Purchasing (aka OCP) which when combined together over the long term make for a solid income generation plan.

I didn’t jive with all of Derek’s opinions such as not taking budgeting seriously (e.g.: he thinks using envelopes or jars to control spending is a bit overboard) but that in no way lessens the wisdom of dividend reinvestment planning. Why is there wisdom in dividend investing? Well it’s taxed less than other forms of income, it reduces risk via dollar cost averaging (e.g.: when everyone else is yelling sell…you continue to buy every month) and most importantly it allows for growing a portfolio while paying little to no transaction fees because you are dealing directly with the companies themselves. This book offers step by step instructions to start your first DRiP and so is a must read.

WE HIGHLY RECOMMEND THIS BOOK!

The Lazy Investor
Author: Derek Foster
ISBN-10: 097369601X
ISBN-13: 978-0973696011