What You Need to Know As a Dividend Investor As Finance Becomes More Complex

Banking Industry, Dividend Investing, Hedge Funds
by Tim Plaehn
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Recently, my wife—who does not follow the financial world—asked me how a hedge fund works. She read about the immense loss suffered by Credit Suisse due to the Archegos hedge fund meltdown. She wanted to know if the losses would affect customers of the bank. The discussion started me thinking about how complicated our financial and investment world is and how hard it can be for individual investors to keep up.

The world of investing has become tremendously complicated, and the Internet provides almost limitless amounts of information. However, the time you have in which to study investing is not without limit. The financial media takes advantage by providing useless soundbite after useless soundbite. I use the word useless if your goal is to invest profitably for the long term, such as for the rest of your life.

I know investors subscribe to my services for investment ideas, but I am proud of the high level of truly helpful education I provide through various communication channels.

For example, this month, the Investors Alley team is putting on a Forever Dividends Masterclass. On the Week One webinar, I noted that just the Masterclass education was worth 100 times the $79 enrollment.

I also include a detailed education section in every issue of the Dividend Hunter newsletter. I want subscribers to understand the details and nuances of investing for a high-yield income. More education makes it easier for me to help my subscribers be successful dividend-focused investors.

Here are a few topics that I share in the Dividend Hunter subscription service:

  • The benefits and drawbacks of pass-through business structures, including real estate investment trusts (REITs) and business development companies (BDCs).
  • The differences between the exchange-traded packaged products, including exchange-traded funds (ETFs), exchange-traded notes (ETNs), and closed-end funds (CEFs).
  • How covered call funds work to generate outstanding dividend payments.
  • Portfolio management to be successful through the ups and downs of the stock market.

I admit, this article has been a promotion for my Dividend Hunter newsletter. I wanted to make you aware that a subscription will get you a master’s degree-level of education in income investing for the cost of a steak dinner.

Author: Tim PlaehnTim is the lead investment research analyst for income and dividend investing at Investors Alley. He is the editor for The Dividend Hunter, an investment advisory focused on creating a high-yield income stream and it's companion service The Dividend Hunter Insiders, Weekly Income Accelerator, a covered call trading service, and for investors looking for long-term total returns from their income investments using stocks with ever-growing dividend payments, he offers Monthly Dividend Multiplier. He co-edits POWR Income with Jay Soloff. Prior to his work with Investors Alley, Tim was a stock broker, a Certified Financial Planner, and F-16 Fighter pilot and instructor with the United States Air Force. During his time in the service he was stationed at various military locations in the U.S., Europe, and Asia. Tim graduated from the United States Air Force Academy with a degree in mathematics. In his free time he tours the United States parks, campgrounds, and wilderness areas in his travel trailer.
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