One of the ways that you can build an income portfolio is to include dividend stocks. Dividend investing is the art of choosing stocks that pay out a portion of their profits each month. However, the thought of dividend investing can be a little daunting to many people. If you want to start a dividend portfolio, and cultivate passive income, consider reading Dividend Growth: Freedom Through Passive Income by Mike Heroux.

Mike is the owner of The Dividend Guy Blog, and an avid dividend investor himself. He has quite a bit of experience in creating a dividend portfolio, and offers a practical guide that can help you reach your own goals of passive income — no matter how much or little you have to start with.

Dividend Growth begins by helping you determine if you should be reading the book in the first place. Mike has a free ebook that covers the basics of dividend investing; if you aren’t beyond the basics, start there. Move on to Dividend Growth after you have grasped the fundamental points of dividend investing.

Mike starts out by explaining why dividend stocks are the way to go, and how you can use them to build a stream of passive income. Then he immediately delves into a how-to that can help you build your dividend portfolio. He covers not only how to invest in dividend stocks, but also gives instruction on how to choose the right stocks for long-term income. Mike also lays out the basics of tax considerations, and which types of dividend stocks belong in different accounts, including RRSPs, TFSAs, and taxable account. He also makes a good case for including U.S. dividend stocks in your portfolio (and how to minimize the tax damage while doing it).

Also, don’t forget about selling some of your holdings, and the problems with turnover. One of the highlights of the book included a great quote from the author himself: “You seek dividend growth, not trading fee growth, dumbass!” One of the most useful bits of information is the fact that frequent trading will probably mainly raise the transaction fees you pay, rather than result in true wealth growth. Dividend Growth establishes clear criteria for selling, and helps you learn to identify when to cut your losses, and when to hang in there and be patient.

Not only will you get information on how you can build an effective portfolio, but Mike also offers strategies for starting a dividend portfolio with different amounts of money. He provides insight and the outline of a plan even for those starting with as little as $500, and he offers ideas for those with more than $25,000 to start. Anyone can get started with dividend investing, and Mike takes the mystery out of the process.

Overall, Dividend Growth is a great read. It’s practical and actionable, and features a friendly, accessible writing style. Plus, you get the sense that Mike really does know what he’s doing, and can help you do it. It’s well worth the $9.99 that you pay to download it for the kindle. Consider it an investment in your future.