I am not a big fan of investment products and services. Typically I struggle to see the value in them, and I prefer to do my own research anyway. Throw in there the plethora of free services/resources/websites currently available, and I would be hard pressed to name a fee based service that I would recommend. That being said, if you are focused on long term dividend investing and use fee based resources, you may want to give Dividend Stocks Rock a shot. (I should point out that we are not being paid/compensated in any way for this review.)
Many in our online community are familiar with Mike, The Dividend Guy. I got to know him a little bit in 2016 through our mutual love of travel. You may recall that we were each taking our respective families on extended road trips, and that his family’s trip was far more exotic than ours. While our investing styles are somewhat different, we each have a fondness for owning great companies for the long term. He is much more focused on dividend investing than we are, but a portion of our portfolios will always be invested in great companies for the long term.
How I use DSR
I use a variety of resources to research various aspects of our investments. The biggest benefit to me comes in the form of investment ideas, and the way those ideas are expressed. Let me explain. Logically we all know that it is impossible to stay on top of all of the publicly listed companies. Their operational performance. Their stock prices. Their managements. Just impossible. (I feel this is also a good argument for putting a large portion of ones portfolio in a basket of low cost index funds, but that’s a discussion for another time.) Dividend Stocks Rock is one of the products that I use in order to get a few bullet points about a group of blue chip companies. Additionally, the information is laid out in a simple and concise form…..whether in the newsletter or individual stock cards. At that point I decide if some aspect of a particular company has become attractive enough to warrant further research.
That’s right, I don’t do ALL of my research within the Dividend Stocks Rock platform…..but I’ve found it to be a good jumping off point that provides some interesting ideas. I don’t know that it would be realistic to expect any one platform to provide everything you need to know about a potential investment. I usually run down my best ideas using some combination of Morningstar, Gurufocus, Value Line, Yahoo Finance……..and typically wrap it all up by reading a few of the company’s own quarterly and annual reports. Once I’ve been through those steps, I feel comfortable making a long term investment.
The most critical of those steps however is the first one, finding the ideas, because that step kicks it all off. No ideas, no research, no investments. So as I said, I enjoy getting ideas from a broad range of resources. I may have researched a given company, thought it was a great company/business….but its valuation was much too high. I may continue to monitor it for a while, but if the price doesn’t fall…..or my assessment of the company’s intrinsic value doesn’t rise……it will eventually fall off my radar. Enter Dividend Stocks Rock. Between the stock charts and commentary snippets…..I may notice that company XYZ has falled in price and Mike now thinks it is attractively priced. That may be my clue to say….”oh yeah, I should look at that one again”. Silly as it sounds, the newsletter commentary and the stock cards have helped me refocus on some very good companies.
As you may have guessed, my favorite features are the newsletters and stock cards. I know from experience how much effort goes into writing a newsletter, and I really appreciate Mike’s summary of the high points. His commentary is useful, in case I missed a particular snippet of earnings news or significant operational milestone. I also find the stock cards useful because they give me a multiyear snapshot of a company’s various metrics….such as the relationship between stock price, revenue, P/E, etc.
In summary, I appreciate the Dividend Stocks Rock service……and garner a few ideas from it each month. I don’t always agree with Mike’s opinions, but I always appreciate reading about his investment thesis….especially when it just challenges my own investment ideas. That kind of discussion and commentary makes us all better investors.
Have you tried this or another service? How has your experience been?