Like index investing, dividend investors form a large subculture in the investment world. And it’s easy to see why. Dividends allow you to make money even when share prices are stagnant or faltering. However, finding well-run companies with stable dividends can be challenging without adequate research tools or experience.
Oxford Income Letter is an affordable dividend stock newsletter that presents investments with above-average and sustainable yields. An annual subscription starts at $49, which is very low for a stock newsletter. It’s one of the reasons I’m a long-term subscriber.
This Oxford Income Letter review highlights the membership benefits that will help you build a diversified dividend portfolio. You can decide if this service is worth paying for.
Table of Contents
- What Is the Oxford Income Letter?
- Who Should Join the Oxford Income Letter?
- Oxford Income Letter Cost
- Features and Benefits
- Pros and Cons
- Oxford Income Letter Alternatives
- Final Thoughts
What Is the Oxford Income Letter?
The Oxford Income Letter is a monthly publication showcasing three model portfolios of dividend stocks and one portfolio of fixed-income bonds. The publication aims to present well-researched ideas to help you avoid chasing dividend ETFs or stocks with the highest yields.
The monthly publication provides in-depth research and new stock ideas. Further, weekly updates cover major happenings with open recommendations and other dividend-related content.
The newsletter is published by The Oxford Club, which also publishes the Oxford Communique (its flagship and entry-level stock newsletter) along with several premium services.
Its chief editor is Marc Lichtenfeld, who currently serves as The Oxford Club’s chief income strategist. His investment experience includes stock trading, fund management, and specializing in the biotech sector. He also developed something called the 10-11-12 system to identify potential high-yield dividend investments.
With the Oxford Income Letter, you can expect to receive stock recommendations from various industries, including biotechnology, energy, financial, and real estate.
Who Should Join the Oxford Income Letter?
Dividend growth investors stand to gain the most from this letter, as most of the stock picks take dividend yield and stock growth potential into consideration.
You may also like this newsletter if you want exposure to individual dividend stocks instead of only relying on dividend ETFs.
Oxford Income Letter Cost
A subscription to the Oxford Income Letter ranges between $49 and $249 per year, depending on the package you choose and whether or not you receive a discount.
A free “Ultimate Dividend Package” is also available but doesn’t provide access to the monthly investment ideas. This resource is more of a how-to guide for dividend investing and to get a feel for the Oxford Club research material by including some past recommendation
Both paid packages offer a 365-day satisfaction guarantee, so requesting a refund is possible if you’re not pleased with the service. You must also contact the publisher’s customer service to cancel your subscription before its renewal date.
The ongoing fee of $79 is very reasonable as this rate is usually a teaser price for the first year only, and then you pay $199 or more for each renewal. This low ongoing cost is why I keep subscribing, as it’s a budget-friendly way to get new income-producing investment ideas.
Here is a closer look at the various packages.
The premium package costs $79 annually (the non-discounted price is $249) and provides full access to the Income Letter special reports and model portfolios.
- 12 digital issues of the Oxford Income Letter
- Access to four model portfolios
- Three special reports
- The free hardcover of Get Rich with Dividends by Marc Lichtenfeld
The monthly reports and four model portfolios are the most valuable benefits for most people. The special reports and complimentary books are also helpful if you want to learn more about the basics of dividend investing and the best ways to maximize your tax situation.
As I’ve mentioned several times in this review, securing a subscription for $79 is very reasonable for one of the best investment newsletters available.
A budget-priced Standard subscription costs $49 for the first year and then $79 annually. This membership tier only provides access to the monthly issues and the Ultimate Dividend Package of curated special reports.
Ultimate Dividend Package
You may decide to start with the free Ultimate Dividend Package, which includes several special reports and educational materials that can improve your dividend investing skills.
Some of the report examples include:
- My #1 Dividend Stock
- The Safest 8% Dividend in the World
- Top Three “Extreme Dividend” Stocks
You will receive regular email updates to keep up with the latest dividend investing insights. There’s also the ability to upgrade your membership at a later date.
Features and Benefits
Here are the core features and benefits you can expect when subscribing to the Oxford Income Letter.
Subscribers receive a digital newsletter once a month. The newsletter layout follows a standard format that presents a new stock idea and a backstory that may include the company’s history and why it’s a good fit for earning yield.
Each monthly stock pick mentions which portfolio it’s entering and a customary 25% trailing stop to manage risk. They also recommend placing the stock in a taxable or tax-deferred account. Oxford will send a mid-month update when a position hits its stop-loss threshold.
In addition to the monthly recommendation, there are three additional sections contributed by the analyst team:
- Follow The Smart Money: See what professional investors and hedge fund managers are doing with their capital and how it may affect dividend investors.
- Fixed Income: The latest market news that may benefit or harm fixed-income investments.
- Snapshot: Additional commentary on the newest stock pick or a previous recommendation. This section may also mention other companies that can fit your investment goals well.
- Marc’s Mailbag: View answers to questions submitted by readers. You can email your investing-related questions too.
All in all, a monthly issue is approximately nine pages double-sided. And if you’re not already doing so, you may want to consider using a stock research website to perform additional due diligence and help you decide if an Oxford stock pick fits your investment goals.
According to the publisher, since the newsletter’s inception in 2013, the average holding period has been approximately 20 months, with a historical average return of 17.53%.
The investment performance is competitive with well-run newsletters that aim for realistic returns from stocks with good fundamentals and ample liquidity. You don’t have to worry about penny stocks here.
The following four model portfolios offer more investment ideas than the average stock-picking newsletter, which may only have one portfolio:
- Compound Income Portfolio: Focuses on companies with a history of increasing their dividend yield in consecutive years, such as Dividend Aristocrats.
- Instant Income Portfolio: Start earning dividends right away. It’s designed for you to allocate investment funds right away so that you can use the proceeds to pay bills and near-term expenses.
- High Yield Portfolio: Companies with some of the highest dividend rates that are also more sustainable than competitors with similar yields. These recommendations can be riskier than the other portfolios to earn a better payout potential.
- Fixed Income: Individual blue-chip corporate bonds and alternative bonds with high payout potential.
Having access to several portfolios makes it easier for you to pursue multiple dividend strategies and earn monthly dividends.
Each stock portfolio has a different number of open recommendations. At the time of this review in July 2023, one portfolio had as few as three picks (High-Yield Portfolio), while another had 22 (Compound Portfolio).
The newsletter posts the investment performance for each position since its original recommendation date. A dividend tracker can help you easily track your personal investment performance.
Subscribers can also read special reports that may expand upon a recent recommendation with additional research. There are also guides that can help you optimize your income investment skills.
Dividends can provide consistent income during your working years and in retirement. Just as you might use free investing apps to avoid trading and other investment fees, the newsletter tries to get the best dividend income tax treatment.
For example, Oxford suggests whether you should place stocks in your taxable brokerage account or a tax-advantaged retirement account to avoid a surprise tax liability.
Pros and Cons
Below are the advantages and disadvantages of this dividend newsletter.
- Monthly stock picks
- Multiple model portfolios
- Affordable pricing (as low as $49/year)
- 365-day refund period
- Not every stock pick is successful.
- Older picks in model portfolios may not have a current buy rating.
- Not suitable for aggressive, growth-focused investors
Oxford Income Letter Alternatives
Before signing up for the Oxford Income Letter, I recommend checking out the following platforms that also provide hands-on support for finding dividend stocks and funds.
Seeking Alpha offers free and premium research tools for self-directed investors that want more flexibility. The service has an excellent stock screener and numerous articles from independent contributors with a bullish or bearish viewpoint.
Subscribers can also get access to proprietary stock ratings and a portfolio tracker. The free version is sufficient for casual investors, but a paid membership is necessary if you invest in new stocks regularly or value in-depth research. Read our Seeking Alpha review to see the various research and portfolio features.
Motley Fool Stock Advisor
Motley Fool’s Stock Advisor is an excellent option for long-term growth investors willing to hold a position through the market’s ups and downs without placing stop-loss orders. Some positions pay dividends, but Motley Fool favors stocks with the potential to outperform the S&P 500 over the next three to five years.
Subscribers get two monthly recommendations, and there are curated lists of Starter Stocks that can be good to buy at any time. There is also a Best Buys Now feature, which highlights open recommendations with the best entry point at the moment. Learn more with our Motley Fool review.
Zacks provides free stock ratings along with a basic stock screener. A premium subscription lets you view analyst reports, use advanced stock screens, and provides access to a long-term model portfolio. Short-term traders will enjoy Zacks Trade’s many advanced technical data tools.
Sure Dividend is yet another top-notch dividend newsletter with three different pricing tiers. The entry-level tier presents a monthly “Top 10” list of the best dividend stocks. Each stock receives a brief writeup to be the foundation of your research but doesn’t include a model portfolio.
Three different model portfolios are available with a mid-tier subscription offering monthly updates. A premium Sure Analysis Database is a powerful dividend stock screener that’s open to new members seasonally.
With yearly pricing as low as $49, the Oxford Income Letter is certainly worth it for the right investor. However, if you have little interest in dividend investing or you prefer a strictly buy-and-hold investment strategy, you may be better off choosing a different platform for your investment research.
You can cancel your Oxford Club subscription at any time by contacting the company’s Member Services Team at (866) 237 0436 between 8 AM and 8 PM EST. International customers can dial +1 443 353 4540.
While dividend investing is very popular, there are potential downsides to owning a portfolio of dividend stocks. For one, dividend payments are not guaranteed. While many companies have a strong track record of paying dividends, they may not always do so.
Also, the most popular dividend stocks are well-established companies with strong balance sheets and a history of allocating a portion of profits to shareholders in the form of dividends. Generally speaking, most of these companies lack the capital growth potential of many growth stocks that don’t pay a dividend.
The Oxford Income Letter is an excellent and affordable resource for beginner and experienced dividend investors. It offers a variety of model portfolios that can help you diversify but earn competitive yields.
While there are no guarantees, following the recommendations in the Oxford Income Letter may help you avoid unsustainable yields and volatile stocks. However, keep in mind that practicing position sizing and following stop losses is vital to maintaining a balanced portfolio.
Oxford Income Letter