FAQ
Answers to your questions about Dividend Stock Guru
Section 1: Overview and Trading Strategy
What is Dividend Stock Guru?
What is your trading strategy?
What are the key pillars of your trading strategy?
Is this a short or long term trading strategy?
What’s different about you compared to other newsletters?
Who are you and what is your background?
What are your results?
Is the Dividend Stock Guru approach for me?
Do you provide a rating for high yield dividend stocks?
How do you determine if a company can sustain its dividend?
What is the best time to buy a high yield dividend stock?
What is the best entry price for a high yield dividend stock?
When is the best time to sell a high yield dividend stock?
Are there other ways to generate income while holding a high yield dividend stock?
How do you determine the risk of a dividend cut?
Section 2: High Yield Dividend Stock Reports
What are high yield dividend stock reports?
Where can I find these reports?
How much do these reports cost?
How long are these reports?
How long will it take me to read one of your reports?
Section 3: Substack Posts and Notes
What do your Substack posts cover?
Are the posts available to free subscribers?
How can I find your latest posts?
What do your Substack notes cover?
Section 4: For Beginners
I am new to high yield dividend stock investing. How do I get started?
Section 1: Overview and Trading Strategy
What is Dividend Stock Guru?
Dividend Stock Guru is an investment approach led by Michael Letcher, focused on finding the best high yield dividend stocks with the best potential to continue paying their current dividend while maintaining a stable share price. Michael provides detailed analysis for finding, screening, and analyzing high yield dividend stocks as well as strategies for entering, maintaining, and exiting high yield dividend stock trades.
What is your trading strategy?
The Dividend Stock Guru trading strategy starts with finding high quality stocks with an annualized dividend yield of up to 8%. These are stocks that are capable of consistently beating fixed income investments like certificates of deposit and high yield savings accounts offering current interest rates around 3.75%. This is a contrarian investing strategy focused on providing stable, reliable, and consistent annualized yields of up to 8% without the exposure to higher levels of overall stock market risk that you might find with long term buy and hold index funds.
What are the key pillars of your trading strategy?
(1) Focus on a steady, consistent yield of up to 8% instead of trying to find the next growth stock that is going to explode upwards to the moon and beyond. We’ll accept growth in the price of a stock while we’re holding it and collecting the dividend - however its not our primary focus. (2) Avoid dividend traps where the high yield is due to a falling stock price. (3) Never buying a high yield dividend stock when it first appears in financial articles. Instead we use limit orders and wait patiently for a logical pullback in the share price in order to capture a much higher dividend yield and to allow for more headroom in case the price of the stock pulls back a bit while we own it. (4) We never, ever buy a stock based on a hot tip. (5) We supplement high yield dividends with additional income that comes from selling covered calls.
Is this a short or long term trading strategy?
When a high yield dividend stock trade is done correctly, you should be able to stay in the trade over the long term as long as the company is continuing to pay the dividend and the stock price is stable or has increased since the time you opened the trade.
What’s different about you compared to other newsletters?
We focus on the best high yield dividend stocks for individual retail investors and help you find a good entry price for opening the trade. We’re not looking for the next growth stock that’s going to pop and we don’t publicly share our portfolio the way some other Substacks might. However, from time to time we will publish posts that show the complete history from the day we entered the trade until the day we sell the stock.
Who are you and what is your background?
My name is Michael Letcher and I’m the founder of Dividend Stock Guru. I’m a licensed CPA and a former Fortune 500 corporate controller. I’m also an individual retail investor with over 30 years of investing experience. I use my financial and trading background to help you find, screen, and analyze high yield dividend stocks with the best chance to continue paying dividends while maintaining a stable stock price over time.
What are your results?
As of 2/10/26, I have never, ever lost money on a high yield dividend stock trade and I have consistently achieved at least an 8% annualized yield or higher. I never depart from my trading strategy and I always sell covered calls throughout the life of every trade to supplement the income I’m already receiving from the dividend. If any of this changes in the future, I will come back in here and update this page.
Is the Dividend Stock Guru approach right for me?
Only you can answer this question. This approach is typically appropriate for: (1) Experienced investors looking for an independent, straightforward opinion of a particular company, (2) Investors with some investing experience looking to improve their ability to find good companies, and (3) Fixed income investors looking to beat CDs and high yield savings accounts with higher yields.
Do you provide a rating for high yield dividend stocks?
Yes. Our high yield dividend stock reports use the following rating scale: Strong Buy, Buy, Neutral, or Avoid. The ratings in our reports are designed for individual retail investors to use before buying the stock.
How do you determine if a company can sustain its dividend?
We focus on management’s commitment to maintaining or increasing its dividend along with in-depth analysis of the company’s net income and cash flow available to pay dividends. We explain these metrics in a way that’s friendly to even the most inexperienced investor who’s new to stock market investing.
What is the best time to buy a high yield dividend stock?
The best time to buy a high yield dividend stock is during a period when there’s no recent news about the company on a day when the stock price has pulled back to a recent level of price support. It’s also important never to buy a stock during the first hour of trading in the market. During this time, trading volumes are thin and the market has not yet established a clear trading direction for the day. These factors can lead to highly volatile and unpredictable movements in stock prices.
What is the best entry price for a high yield dividend stock?
The best entry price for a high yield dividend stock is when its trading near the 52-week low at a time when the company’s price earnings ratios signal that the stock is trading at a discount relative to the rest of its industry competitors.
When is the best time to sell a high yield dividend stock?
A high yield dividend stock should be sold when the stock begins to show signs of faltering due to declining revenue or net income or both. These stocks should be sold using firm limit orders or by selling covered calls so that you can collect some extra income as you are exiting the trade.
Are there other ways to generate income while holding a high yield dividend stock?
Yes. It’s critical to supplement your dividend income by selling covered call options. This is a very low risk strategy that can sometimes mean the difference between a profitable or a losing trade. You’ll need to ask your brokerage to approve you for covered call trading but because its low risk, most investors are approved for this type of trading.
How do you determine the risk of a dividend cut?
Our high yield dividend stock reports use a scorecard system with 26 different metrics to estimate the risk of a dividend cut in an easy to read format.
Section 2: High Yield Dividend Stock Reports
What are high yield dividend stock reports?
High yield dividend stock reports take an in-depth look at potential high yield dividend stocks using a scorecard system to rate the stock against other stocks. These reports are user-friendly, visually appealing, and offer a quick way to navigate quickly throughout the report. These reports are laser focused on the following two key questions: (1) Can the company continue to pay out its dividend? and (2) Will the stock hold its value over the life of the trade while you collect the dividend?
Where can I find these reports?
You can find our reports on the Dividend Stock Guru home page on Gumroad.
How much to these reports cost?
We want you to be confident with how these reports are designed before you buy. We’re currently offering a free report on United Parcel Service (UPS). Check out this report first. Then buy our paid reports on other high yield dividend stocks you might be considering. These reports are priced at $10 each. However, we’ll be offering the ability to bundle reports on multiple companies at a reduced cost in the near future.
How long are these reports?
These reports are usually 8 pages long. They come to you in an easy to read PDF format including helpful bookmarks that will allow you to quickly assess the company on the first page or to drill deeper into our scorecard metrics for additional information deeper in the report. You’ll be able to quickly navigate through these reports.
How long will it take me to read one of your reports?
A lot less time that it took me to prepare it. I’ve reviewed the company’s financial statements, read the equity analyst reports, and run the numbers so you don’t have to. In just minutes, you can make an informed decision on whether you’d like to invest in the company. However, all of the details are in there and right at your fingertips if you’d like to take a closer look at the company.
Section 3: Substack Posts and Notes
What do your Substack posts cover?
Our Substack posts cover the foundational learning that you might need to help you enter the world of high yield dividend stocks. These posts also introduce you to specific companies you may want to consider because they offer a high annualized dividend.
Are the posts available to free subscribers?
Yes. In the future, some posts about specific high yield dividend stock trades will be available only to paid subscribers. Ready to get started?
23. How can I find your latest posts?
For a complete list of our latest posts, visit the archive section of our website.
What do your Substack notes cover?
Our Substack notes cover a wide range of topics focused on specific trading techniques that are easy to digest to help you get started with high yield dividend stock investing.
Section 4: For Beginners
I am new to high yield dividend stock investing. How do I get started?
To get started, subscribe to Dividend Stock Guru:
When you’re ready to see what you’ve learned put into action, take a look at the free high yield dividend stock report on United Parcel Service (UPS):
When you have a particular company you’d like to research, check out our high yield dividend stock reports to see if it is right for you: