Investing on your own is not an easy task. From mutual funds to individual stocks, there is a wide range of strategies, information services and trading platforms to choose from. It can become overwhelming.
I started investing at the age of 16 through mutual funds. Since then, I evolved into a mix of ETFs and dividend growth investing strategies. This was the beginning of a long investing journey where I learned a great deal about the stock market and personal finance. Back then, information resources were limited. At least, we had Yahoo! Finance stock screeners to research companies!
Today, investors face a completely different problem: information overload. Youtube investing channels, podcasts, financial news sites and free investing blogs (like yours truly) are legion. Your research will often result in an overwhelming amount of information to digest. You may then get stuck in the paralysis by analysis syndrome.
Dividend Stocks Rock Review
Fresh data and information
Layout and ease of use
While by no means a one stop shop, DSR is a powerful tool and a great source of information for people who are willing to put in the work. Dividend growth investing is not simple and requires a lot of research, but with DSR’s help you can guarantee excellent long term results.
While I read much online from various sources (blogs, forums etc.), I do get a lot of ideas from dividend newsletter subscriptions. One of my favorites is Dividend Stocks Rock (DSR), created by Mike Heroux, a former private banker who now lives out his passions online. What I like most about Mike is his straight-to-the-point approach. This enables me to cut through the noise and focus on what really matters: my portfolio.
What is Dividend Stocks Rock?
Dividend Stocks Rock was created by Mike Heroux in 2013. This started as a “side-line” stemming from Mike’s passion about dividend growth investing. It rapidly grew into a complete platform for DIY investors who are looking for a “hiking buddy” while investing in dividend stocks.
Mike’s goal is to help people invest with more conviction, get rid of their buy/sell dilemmas and doubts about the market and make sure they position themselves to enjoy their retirement.
How Does it Work?
When you login to the DSR website for the first time, you are immediately directed to their dashboard where Mike explains his investment process. There is a combination of written explanation and videos to teach you how to use DSR to its fullest extent. Here’s an example:
DSR offers a straight-forward process containing three steps:
#1 Rethink your portfolio
Once you subscribe to DSR, you will be invited to review your portfolio and make comparisons with DSR portfolio models. You can either decide to mimic one of their portfolios (which is good if you are just starting to invest) or simply bring some modifications to your established portfolio.
Dividend Stocks Rock presents a specific point of view on each sector. They believe nobody should invest more than 20% of their money in any single sector. The more you add past that 20% level, the more volatile your portfolio may be.
DSR has 9 portfolio models covering both Canadian and U.S. markets. They have solutions for growth and income seeking (retirees) investors too! Most importantly, most of their portfolio models (7 out of 9) have beaten their respective benchmarks since inception (2013-2014).
Source: Dividend Stocks Rocks (portfolio returns as of September 17th, 2020).
Now is always the right time to change your sector allocation. DSR Portfolio Models will help you get the work done!
#2 Buy the right assets
Once you have picked the portfolio style you wish to follow, it’s time to hunt for the stocks to populate your portfolio. You will often lack the time to review the entire dividend stocks universe. You can let DSR take care of the hard work for you.
I like to use their impressive stock library with full analyses on over 400 dividend paying stocks. What I like most about this element of the DSR service is that Mike and his team keep the size of their stock library limited to a narrow number of stocks. This helps your research by only looking at the best of breed for each sector.
DSR covers both Canadian and U.S. dividend paying stocks!
If you suffer from paralysis by analysis, their analyses will make it easy for you to make decisions. They provide an easy to understand stock rating system (from 1 to 5) along with a dividend safety score (1 to 5 as well). Their analysis is spot-on, and their ratings tend to beat the market.
Using both ratings to filter the list will help you pick the best of stocks for each sector within minutes.
Each stock card is published on their website with current metrics. Their analysis includes a summary of the business model, the DSR investment thesis, potential risks and dividend perspective. You have access to all general metrics along with a focus on dividend data.
You can also download the analysis in a pdf format. Their easy-to-read stock cards are printed in two pages and includes all the important metrics. The best part of the service is that you can request any dividend paying stocks to be analyzed by the DSR team! They call it “stock card on demand”.
#3 Manage your portfolio throughout market cycles
The market throws us curve balls all the time. Financial crises, oil busts, and coronavirus all add to the Noise in the Markets.
At DSR, they not only care deeply about investing and the investing process, but they also care deeply about their members! DSR weekly newsletters cover everything you need to know and provide you with clever, actionable intelligence on opportunities.
During times of crisis, DSR has offered private webinars to assist their over 1,500 subscribers stay the course. I’ve attended a few of those webinars and I really like how Mike stays around often for over 60 minutes to be sure to answer all his subscribers’ questions. Those private webinars have become so popular that it’s now become a monthly thing! With DSR support, you will not doubt your decisions.
Another Powerful Tool
I bet you are having a hard time keeping track of all the information about your stocks. Between market news, volatility, and quarterly earnings, it’s easy to get swamped by a tsunami of papers to read.
How can you make good decisions when you are overwhelmed with data? This often translates into difficulty buying or selling at the right time. DSR, however, tells you where to look. Their team can track companies in your portfolio for you.
Dividend Stocks Rock offers a “PRO” version where their team reviews your portfolio quarterly.
DSR PRO is a customized quarterly report tracking each company’s earnings, and you receive a portfolio summary along with crucial information about all your holdings. You tell them what to follow and they keep you in the loop.
Dividend Stocks Rock Cons
While I really enjoy DSR services, there are a few things that must be taken into account before subscribing.
This is not “buy this stock and make 100% return” service. Mike and his team focus on long-term investing and don’t focus on flashy returns. While their stock selections and portfolio models outperform the market in general, you must be patient and consistent to see the magic happen. You won’t find the next Shopify on their site. If you are looking for quick and timely buys, this is not the service for you.
Dividend growth investing requires time and effort. Although DSR does a great job in simplifying stock analysis and makes financial lingo more understandable, you will still need to spend hours doing research on their website. Mike told me he is working on a stock screener to make all his subscribers’ research easier, but it’s not on the site yet.
DSR doesn’t provide target prices. Most investment services will give you a target price in their stock analysis. They will basically tell you if TD trades at a good price right now and what’s the upside or downside potential. DSR doesn’t do that. They believe in buying quality dividend growers and give little attention to the current price. They explain that most financial analysts are wrong 80%+ of the time when they predict stock prices. Nobody knows the future. I understand their rationale (and their performance proves that they know what they are doing), but it still feels good when you buy a stock with an upside potential of 25%, right?
It takes some time to get around all the information. Since you can find everything between a monthly buy list to portfolio models, it could take time to understand how to use each of the DSR tools. Mike does a good job in providing videos explaining each of them. Just know that you’ll need a couple of weeks to get used to the DSR features.
How Much Does Dividend Stocks Rock Cost?
When you subscribe to DSR, you get access to many things:
Portfolio Models:Rethink your portfolio using 1 of their 9 US or CAD models. Each one comes with its own booklet and is updated quarterly. Stop overthinking by having a strong sector allocation.
Stock Cards: Buy the right assets and pick among the best stocks only with their 425+ stock reports. Focus on quality over quantity to build your portfolio with conviction.
Stock Cards on Demand: Ask them to review any stocks in your portfolio! Get instant access to their investment thesis, potential risks, dividend growth perspectives, valuation and key metrics. It’s like having your own personal stock research assistant.
Newsletter: Stay the course and grow in confidence with their weekly newsletter. DSR covers everything you need to know and provides you with clever intelligence including buy and sell ideas.
Exclusive Webinars and Videos: Focus on what matters and ask all your questions! Benefit from the power of a community of over 1,500 investors.
Customized Quarterly Portfolio Report (DSR PRO only): Track each of your companies’ earnings in no time. You will never miss news that may directly affect your investment performance.
Risk-free Investment: Try DSR for 60 days and get your money back if it’s not working for you.
Best Deal: Your price will never increase once you become a member.
DSR offers three payment options:
DSR PRO ($297/year)
Since I partnered-up with Mike, I can offer you a special discount! Million Dollar Journey readers only pay $97/year for DSR and $197/year for DSR PRO.