The Hidden Power of Rising Dividends

How to Produce Security, Income, and Growth

Non-Fiction - Business/Finance
380 Pages
Reviewed on 08/06/2024
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Author Biography

Greg Donaldson is an acclaimed entrepreneur, innovator, visionary, and writer with deep roots in the finance and investment industries. With a career spanning more than 40 years, Greg has worked as an advisor, researcher and businessman for multiple investment and trust companies throughout the Midwest. He is the architect of the award-winning Rising Dividend Cornerstone™ investment strategy and author of The Hidden Power of Rising Dividends: How to Produce Security, Income, and Growth.
In 1995, Greg founded Donaldson Capital Management (DCM), an independent investment advisor and financial planning firm headquartered in Evansville, Indiana. Alongside his friend and business partner, Mike Hull, Greg captained the company’s growth for several decades. Today, DCM manages more than $3 billion in assets and serves clients throughout the United States.

​Greg remains with DCM as a member of its Board of Directors. He and his wife Joyce live in Evansville, Indiana and spend their summers in Sisters, Oregon, where they enjoy mountain biking, hiking, and fishing. They have two children, Justin and Nick, and two grandchildren.

    Book Review

Reviewed by Asher Syed for Readers' Favorite

The Hidden Power of Rising Dividends by Gregory Donaldson traces his investment evolution from the aftermath of Black Monday in 1987, shaping his High-Dividend-Yield strategy by 1988 across sectors like consumer staples and materials. Through research and collaboration, Donaldson refined his approach with the multistage DDM by 1992, leaning into sustainable investments and meticulous stock valuations. Transitioning to the "Rising Dividend" strategy in the 1990s, Donaldson Capital Management (DCM) managed $37 million by 1995, focusing on dividend growth's stability against market fluctuations and interest rate changes. Donaldson's preference for dividend-paying stocks over high-growth alternatives during the tech boom was validated, and strategic divestments showcased DCM's efficacy. External shocks like the 9/11 attacks reinforced Donaldson's long-term investment perspective, driving a deeper focus on corporate governance and ethical practices. By 2014, DCM emerged as a corporate leader, surpassing $1 billion in assets under management, epitomizing its legacy in dividend-centric, client-focused investment management.

As far as business memoirs go, The Hidden Power of Rising Dividends by Gregory Donaldson is a finance enthusiast's dream. I enjoyed the energy of Donaldson's early years and was particularly interested in the historical context that he imparts, and the moments in time that had a much greater impact on the micro level than most watching them unfold on television at home likely realized. That said, for me the best parts of Donaldson's story hit their stride when the decision to start Donaldson Capital Management was made, reflecting the 'small fish in a big pond' entrepreneurial courage and commitment that makes a memoir stand out. Of course, over time, Donaldson has become one of the big fish, but at first, there was a dependence on support offered by colleagues like Gene Tanner from NatCity Investments, who provided a temporary platform for managing assets while awaiting SEC approval. The progress from here is meticulously detailed in Lewis' The Big Short meets Goodman's The Wheeler Dealers literary baby, in which the Rising Dividend strategy is born. Overall, this is a comfortable read even with its heavier numerical elements, and a truly inspirational memoir of the little broker who could. Very highly recommended.

Randy B. Lichtman

For those interested in a detailed understanding of investment strategy, The Hidden Power of Rising Dividends: How to Produce Security, Income, and Growth by Gregory Donaldson describes rising dividends in an approachable manner, documenting his evolution in developing the strategy. It is part history, human interest, and technical investing in its approach. The book opens in a time of crisis, Black Monday of 1987 when the market and his company suddenly needed to deal with some frightened clients and the survival of his small investment company. Through empathetic listening to some of his clients, he was able to not only save his company but calm the fears of his many investors. The story follows the development of his strategy through mergers, the establishment of a new company, and other crisis points (including 9/11, the Dot-Com Bubble, and Enron).

The client-centered approach to the book and important clients’ points of view take it from a purely investing book with technical explanations to one that can appeal to the novice investor. As the author indicates in the preface, not only do we get to know Dr. Begley but we realize the impact that he has on the author’s development in investing as a friend and client. Financial advisors will appreciate Gregory Donaldson’s loyalty and focus on serving his clients by presenting important education and information for them to make the best possible decisions on investing. I was very impressed with the way the author dealt with his clients and learned from them. This was inspiring and made me want to go beyond the technical journey. The Hidden Power of Rising Dividends takes us through investing history from 1987 to the present with a book well written from a human and investing perspective. There is much to discover for financial consultants and serious investors within this very interesting book about rising dividends and investing in general.

Divine Zape

The Hidden Power of Rising Dividends by Gregory Donaldson is a memoir that follows Donaldson's journey as an investment manager and his development of the "Rising Dividend" strategy. The narrative combines Donaldson's personal experiences with his professional expertise in investing. Donaldson writes about his early days as an investment manager and his experiences during the 1987 stock market crash, known as Black Monday. He describes how the crash affected him personally and professionally and led him to re-evaluate his approach to investing. Mildred Hagedorn is a client who challenges Donaldson's conventional wisdom about investing. Hagedorn is a self-made woman who accumulated wealth through farm investments and is willing to take risks. She advises Donaldson to value stocks like farmland, buying them at depressed prices and holding onto them long-term. This is a turning point in Donaldson’s professional life.

Gregory Donaldson’s book is filled with engaging anecdotes about his life, and it teaches readers the investment wisdom the author gained after an apparent failure to understand the nature of the stock market. He is forced to reexamine his assumptions about investing and consider alternative approaches. He realizes that valuing stocks like farmland is not just about buying low and selling high and understanding a company's underlying value. The Hidden Power of Rising Dividends follows Donaldson's journey as he develops the "Rising Dividend" strategy and applies it to his investment decisions. He shares stories about his clients, including Mrs. Hagedorn, who have become like family. He also discusses struggles and triumphs, including the decision to leave his job at a prominent investment firm to start his own business. Readers will learn about the importance of discipline, patience, and persistence in investing. The author stresses that investing is about making profits and building wealth through intelligent decision-making. This book is well written and uses accessible language for all readers. It is informative and entertaining at the same time.

Joe Wisinski

Gregory Donaldson wrote The Hidden Power of Rising Dividends to teach investors, and potential investors, a simple yet effective system for choosing the best stocks. The book’s origination was the stock market crash of 1987, when Donaldson realized there had to be a better way of investing, one that would maximize potential return while at the same time minimizing risk. After much study, research, and help from knowledgeable people, Donaldson developed his stock-picking method, which he used to build portfolios for thousands of clients. Donaldson’s writing method intersperses information with real-life anecdotes, along with numerous tables to help readers understand the points he is making. Donaldson spent his entire career in the investing field, including building his own successful organization, so the book also provides insight into the inner workings of the investment world.

Every investor in the stock market wants to know what stocks to buy. The Hidden Power of Rising Dividends will show them. Author Gregory Donaldson’s powerful system will help investors find stocks that will create a steady income, while at the same time the stocks grow in value. Some people shy away from reading books about personal investing because they think the information may be too hard to understand. But this well-written book is not a boring textbook filled with endless figures. Because of the anecdotes and examples, it reads more like a novel. Readers don’t need a lot of knowledge about investing to profit from the book. On the contrary, they’ll gain a lot of knowledge from reading it. But the book is also a wealth of information for investment professionals. I recommend it to anyone who wants to learn an excellent investing system.

K.C. Finn

The Hidden Power of Rising Dividends is a work of non-fiction in the business, career advice, and memoir genres and is suitable for the general adult reading audience. Penned by author Gregory Donaldson, this interesting work recounts the author's transformative experience during the 1987 stock market crash. As he watched millions disappear from his investment firm's portfolios, Donaldson faced profound uncertainty. Three important phone calls that day led him to discover a neglected investment strategy: valuing stocks based on their rising dividends. This method became the cornerstone of his career, emphasizing security, income, and growth. The book combines personal anecdotes with investment wisdom, offering readers insights into building a reliable financial strategy while also reflecting on living a fulfilling life.

Author Gregory Donaldson's honest and detailed account of investment highs and lows was both enlightening and inspiring. ‘Black Monday’ sits at the center of the work, and this well-narrated moment vividly conveys the panic and uncertainty that investors faced during the 1987 market crash as if we were right there with them. But Donaldson’s confident narration assures us that adversity can lead to unexpected opportunities, even in these earliest moments of despair. His discovery of valuing investments through rising dividends provides a simple yet powerful revelation that we can all learn from. His journey from uncertainty to developing a reliable investment strategy was both educational and motivational, and it is described in relatable language so that people of any level of familiarity with investment can understand and access his wisdom. What stood out most for me was Donaldson's portrayal of his challenges and the personal anecdotes he offers along the way, making you feel as though the narration is coming from a wise old friend. The book offers valuable lessons not just on investing wisely but also on navigating life's uncertainties with wisdom and faith, and it is very well organized to refer back to key advice sections with ease. Overall, I would certainly recommend The Hidden Power of Rising Dividends for anyone seeking new hope in their investment future.