Hello and welcome to my The Dividend Machine review.
I discovered The Dividend Machine service while learning about different ways to earn money through dividend investing. Bill Spetrino, the man behind it, says he believes in keeping “your investments boring, and the rest of your life fun and exciting.”
And that his service is all about two things: safety and income.
Anyway, I was curious so I decided to take a closer look. And what I found was that it's actually a great service, especially for the price. Bill Spetrino really knows his stuff.
That said, I do think The Dividend Machine could be well worth a look if you're interested in relatively “safe” investment opportunities that generate passive, dividend income.
Read on to learn more.
What Is The Dividend Machine?
The Dividend Machine is a monthly investment newsletter service headed up by Bill Spetrino of Newsmax Media. For $109 per year, you get 12 monthly issues and other resources aimed at helping you grow your wealth through the stock market.
The main focus of The Dividend Machine, as the name suggests, is dividend investing.
Incase you're unfamiliar with dividends, they are basically just payments made by publicly listed companies on the stock exchange to their shareholders.
The amount you earn from dividends depends on the dividend yield, the value of the shares you own, and how often dividends are paid out.
For example, if you own $100,000 worth of shares in Company XYZ, the dividend yield is 3%, and they pay quarterly, then you'd get a $3,000 dividend payout every quarter.
Which isn't bad considering you didn't do anything other than hold some shares. So if you invest in high quality companies, this can be a relatively safe way to earn passive income, while also benefiting from a rising stock price over the coming years.
That said, there are some very real risks to dividend investing.
And the biggest risk is if the companies stock price tanks. Because if that happens, the value of your shares tanks AND you're earning less in dividend payments.
For example, if the company's stock price tanked and the value of your shares went from $100,000 in our previous example, to $60,000 – you've lost $40K AND instead of earning $3,000 each quarter in dividend payments, you're now earning $1,800.
So, even though this is considered “safe” in some ways, there are still risks involved. Especially in today's market where virtually nothing is certain anymore.
That said, Bill Spetrino is an expert in the field of dividend investing and has an impressive track record of success in this space. He literally wrote the book on dividend investing, it's called The Great American Dividend Machine and it's separate to his Dividend Machine service.
Instead of searching for the next “growth stock” as many investing gurus claim to help you do, Bill focusses on what he describes as a “boring investment strategy” that's focusses on safety and income. Which, for most dividend investors, is a good thing.
Who's Bill Spetrino – Real Investing Guru?
According to the website, Bill Spetrino is a former accountant who decided fairly on in life that the daily grind wasn't going to cut it. So learned how to become a successful dividend investor and retired by age 42, thanks to the income made through his investments.
Unlike many investing gurus I come across in this space, Bill is somewhat of an “outsider” in that he isn't just another Wall Street guru. Nor does he make a bunch of wild claims about helping you get rich or discover the next “little known opportunity.”
He seems to keep it fairly low key.
And I think that fits with the concept of The Dividend Machine service.
From what I can see, he's designed the service for regular folks who want a safe investment strategy that generates regular income. And that can potentially help you get to the point he has, where your investments pay off your bills and allow you to live comfortably.
And it seems to have been working because The Dividend Machine has been running for over a decade, and has developed a strong track record in that time.
According to Bill, the service has exceeded his goal of helping subscribers achieve 10% annual compounded returns. And the service was recognized by the Hulbert Financial Digest as the #1 low-risk newsletter in the industry.
How Does The Dividend Machine Work?
The main idea behind The Dividend Machine is to follow Bill's investing recommendations to build a portfolio of (somewhat boring) dividend paying stocks.
Each month, subscribers get access to a new issue of The Dividend Machine that provides insights and investing ideas, to help you become a successful investor. According to the website, the main goal is to help subscribers achieve 10% annual compounded returns.
Or in Bill's words:
… each month I help subscribers build a conservative portfolio that concentrates on safety, income, and growth. This will provide a consistent dividend income, and our goal is to achieve a compounded annual return of 10% or more.dividendmachine.com/about-us
He also says that the stocks he's recommended are up 156% since the service launched in 2009. So on top of earning income from dividends, the service aims to help you grow the value of your stock portfolio. Which, according to Bill, are mostly made up of large multinational companies in the consumer goods, pharmaceuticals, retail, banking, and established technology space.
How do you get started?
If you join through the dividendmachine.com website, it only costs $4.95 to get started.
Basically the way it works is you sign up for a free copy of Bill's book entitled “The Great American Dividend Machine” and a 3 month trial to the Dividend Machine service for $4.95.
The $4.95 is actually the postage charge, and once the 3 months are up, you are automatically charged $109 for another 12 months access to the service.
I think this is pretty good because not only are you getting to try the service for free, but you get access to a book that helps educate you on Bill's investing strategy for five dollars.
Is The Dividend Machine Legitimate?
Yes, The Dividend Machine is a legitimate service.
Not only is it run by someone with a proven track record of successful dividend investing, but there are lots of positive testimonials from subscribers who've benefited from it, and you can try the service for $4.95 which is far less than most services I've reviewed.
I also like that it's not very overhyped.
One of the biggest problems with the investing and trading newsletter industry is that it's absolutely full of fake gurus who use misleading hype to sell their service.
So it's refreshing to see someone providing genuine value, at a low price, and without using a bunch of absurd claims about how you can get rich quickly, just by joining.
On the same token, there are still risks involved with The Dividend Machine because nobody, not even Bill Spetrino, can predict the future. People lose money in the stock market every day, even those who follow sound investing strategies, so there are no guarantees.
The Dividend Machine is a monthly investment newsletter service headed up by Bill Spetrino of Newsmax Media. For $109 per year, you get 12 monthly issues, along with other resources aimed at helping you grow your wealth through the stock market.
And as I mentioned earlier, you can try the service for 3 months for $4.95. Which makes it virtually a no brainer for anyone interested in value investing and earning passive income with dividends.
Just know that even “safe” investment strategies can lose you money. So even though this generally is considered a less risky approach, nothing is guaranteed.
Either way, what you decide to do is up to you.
I'm not affiliated with The Dividend Machine or Newsmax Media, so my aim with this review was never to convince you to join, or not join, the service. My aim was just to share my opinion, which hopefully helps you make a more informed choice either way.