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The 20% Letter Review (2022)

  • By Noah Zelvis
  • Nov 12, 2022
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Tim Melvin has built a name for spotting solid income investing plays. But do Tim’s latest insights live up to his reputation? Tune into my Investors Alley The 20% Letter review for the full scoop.

What Is The 20% Letter?

The 20% Letter is an investment research service helmed by Tim Melvin and published by Investors Alley.

Members receive dividend-centric stock picks, market commentary, bonus reports, and much more.

As the name suggests, the team targets gains of at least 20% with every investment idea. This includes share price appreciation and dividends.

Twenty percent might not sound particularly flashy, but it’s not meant to be. Tim focuses on grounded dividend plays designed to outpace inflation and steadily grow portfolios over time. 

As mentioned, this research package offers even more features, including exclusive income plays carefully curated by the team.

The bonus reports uncover opportunities in banking that could be a great fit for folks looking for stable companies to invest in.

I’ll dig into the details as we go, but let’s start with a look at the mind behind the service, Tim Melvin.

>> Sound like a good fit? Sign up for 75% off <<

tim melvin review

Who Is Tim Melvin?

Tim Melvin is a great analyst who specializes in income investing. 

He got off to a humble start, raised in a poorer area of Baltimore by a single mother. Unable to afford college, he began his career as a door-to-door vacuum salesman.

Tim knew the real money was in the stock market and used his hard-earned cash to become involved in the investment scene. 

He became a vice president at Ferris Baker Watts, where he began to understand the power of deep value investing.

A shift to the private sector led Tim to new opportunities as a portfolio manager, advisor, and stockbroker.

With his time as a salesman a distant memory, Melvin now has over 30 years logged managing money for wealthy individuals around the globe. 

Is Tim Melvin Legit?

Tim Melvin is a legit income investing analyst. He’s made some excellent predictions in the last 15 years, calling the top in 2007 and the bottom in 2009. 

Tim was one of the first to tell investors to buy real estate in 2019 and to dump tech stocks in 2021. In June 2022, he called a short-term bottom on the exact day it took place.

Today, he shares these secret income stocks in his popular publications Underground Income and, more recently, The 20% Letter.

>> Access Tim’s latest insights today<<

tim plaehn investors alley

What Is Investor’s Alley?

Debuting in 1998, Investors Alley publishes independent investment newsletters from six of the best minds in finance. 

Its free newsletter, The Market Cap, reaches more than 300,000 readers who rely on its research to make informed decisions in the stock market.

In addition to the free newsletter, Investors Alley has ten premium publications dedicated to specific market niches. 

The content includes valuable insights from guru Tim Melvin and much more.

tim melvin dividend stock potential gains

The 20% Letter: The Perfect Dividend Bank Stock

The investing world is changing. Typical methods from the not-so-distant past no longer have the oomph to create stable finances for retirement. 

Many stocks are struggling in this year’s turbulent market, but some under-the-radar winners are showing tremendous promise.

The 20% Letter has uncovered 174 bank stocks that could be excellent performers in the coming months and years. 

These banks don’t care about portfolio size or what’s happening in the world.

So what is it that makes them such perfect income investments?

>> Find out the name of Tim’s “perfect” bank stock <<

stock market quote

“Buy and Hold Is Dead”

Once considered a solid investment strategy, the old buy-and-hold method is at the end of its rope.

In the past, many casual investors turned to companies like Vanguard to manage portfolios and bring in growth. However, these companies only seek to maintain 3-5% growth rates yearly.

The problem lies with inflation trends, projected to stay at astronomical highs. If inflation rates remain above 5% (like they are right now), you’re actually losing money each year.

People are watching their retirement savings melt away through these traditional investment methods.

Americans are living longer than ever, meaning those funds have to stretch further than ever before. New tactics are required to build a comfortable nest egg and generate enough income annually to not only pay bills but enjoy your golden years.

Melvin believes that the solution lies in strong dividends. Not just any dividend stock will do, however. No matter where you are on your retirement journey, bank stocks could be the answer.

bank stock quote

Why Buy Bank Stocks?

No matter how the economy is shaping up, banks have been designed to take a beating. The Federal Reserve went so far as to perform stress tests earlier in 2022 and felt “all banks” passed with flying colors.

In the aftermath of the Covid pandemic, these same banks have seen restrictions lifted that were hindering buybacks, repossessions, and other income-inducing opportunities.

These same events happened in 2008, and banks saw monumental increases in the amount of capital they control. This gives institutions the foundation they need to survive a downturn.

On top of that, banks are crucial for society to function. Many of them are dramatically undervalued, putting stock prices in places much lower than they should be. The potential is there to outperform the S&P 500 down the line.

Banks aren’t sitting idly by, either. Many are consolidating; grabbing up smaller banks to expand reach and profitability.

They’re also buying back shares, boosting the value of any that remain. Interest rates increasing could also spell massive profits for the banking world. All these signs point to a perfect storm for investing.

Below are seven past perfect bank stocks showing both share gains and income from dividends. These companies had their moment in the sun, and now new bank stocks are rising to take their place.

Tim Melvin’s #1 “Perfect Dividend Bank Stock”

Melvin’s current pick for the perfect dividend bank stock already looks to eclipse past perfect dividend stocks by an impressive margin. It’s not even a large institution, owning only 39 branches across Ohio and Florida.

This particular bank pays out an 8.2% dividend yield but trades for less than $16.

All the details, including the ticker, are available with the latest research deal.

>> See Tim’s top bank stocks <<

twenty percent letter newsletter

What Comes with Tim Melvin’s The 20% Letter?

Tim Melvin’s The 20% Letter provides an array of investment research to help folks navigate the income-investing landscape.

Read on to find out everything on offer. 

One-Year Subscription to Tim Melvin’s The 20% Letter

Members can tap into monthly market analysis and a new trade idea curated by The 20% Letter team.

The newsletter also explores other topics, such as the Federal Reserve’s latest moves and booming sectors to keep an eye on.

This is a great place to get a sense of where the markets are heading, as well as the team’s strategies to tackle emerging events on the stock market.

As mentioned, the goal is to find opportunities with the potential for 20% returns. While this number may seem modest, it could double the value of portfolios if the investment thesis holds up for three years.

Model Portfolio

The model portfolio keeps members in the loop about the team’s open positions.

If you’re new to the service, you might want to make this your first stop for picks.

Members have unlimited access to the portfolio, so you can revisit this resource as much as you want during your subscription.

Trade Alerts

The best trade opportunities don’t wait until The 20% Letter monthly issue drops. Fortunately, Melvin and his team keep subscribers up to date with to-the-minute trade alerts.

You’ll get clued in when stocks appear to be reaching the bottom and when to sell to maximize profit.

Weekly Video Updates

For those hungry for insights more than just once a month, Melvin releases a video update of current stock positions and the state of the market each week.

You’ll get to hear and see Melvin’s reactions to market shake-ups and any big news happening that week.

Where each monthly issue of The 20% Letter is a deep dive into income investments, these video updates are the highlight reel.

>> Access all these features and more HERE<<

Tim Melvin’s Bank Stock Bonuses

This limited-time deal also provides new members with exclusive income plays and educational materials.

Let’s take a look at the bonuses on offer.

tim melvin's perfect dividend stock

The Perfect Dividend Stock Bonus Report

Written by Tim Melvin himself, this report details the one dividend stock above all others to use as the cornerstone of a portfolio. He reveals the name and ticker of the company and all the details you’ll need to understand why it’s such a “perfect” pick.

Since one stock does not make a portfolio, Melvin also shares his strategy for finding these dividend stocks to bolster income investments.

Educational Library on Bank Stocks

Tim also provides members instant access to his research library on bank stocks.

This educational research offers members a bird’s-eye view of his strategy for finding the right banks to invest in, as well as which ones to avoid.

Tim updates the library once enough so this is a resource that will continue to grow over time.

If you want to do some self-directed investing, I recommend giving it a close look.

Bonus Portfolio: Tim Melvin’s Top-10 REITs

Real estate investment trusts (REITs) are well-known dividend yielders, and the richest investors have a significant stake in physical real estate.

Marvin is in the process of building a portfolio of the ten best REITs representing physical real estate to diversify income streams.

The housing market is never going away, and REITs can be a safe way to invest in the space. In many cases, these REITs pay out dividends as high as 7% or 8% in a stock that you can buy and leave alone.

The 20% Letter members have access to Tim’s list of REITs and any additions or omissions that happen along the way.

af money back guarantee

12-Month Money-Back Guarantee

Under the latest deal, The 20% Letter is offering a 12-month money-back guarantee on the subscription cost.

For reference, the industry standard is about one month for similar newsletter services. So the current refund policy provides 12 times more coverage.

This is a good sign that the team stands by their work.

And unlike most newsletters, 12 months could be more than enough time to see a position to its conclusion.

>> Sign up under Tim’s satisfaction guarantee <<

Pros and Cons of The 20% Letter

Tim Melvin’s The 20% Letter has a lot to offer, but it isn’t perfect. Check out the pros and cons of this service.


  • The 20% Letter and Tim Melvin are legit 
  • Incredible 12-month money-back guarantee
  • Weekly video updates
  • Time-sensitive trade alerts delivered to your inbox


  • A narrow focus on dividends
  • No chat room or discussion forum

How Much Does The 20% Letter Cost?

An annual subscription to The 20% Letter typically costs $149. However, Tim and team are offering a limited-time deal that dramatically cuts down the sticker price.

Right now, members can sign up for just $49. This shakes out to a 67% discount (not too shabby).

Considering that the bonus features are worth $500 on their own, this is an excellent deal.

One solid stock pick could offset the price of the subscription.

Is Tim Melvin’s The 20% Letter Worth It?

The 20% Letter is a great newsletter that is well worth the price. The $49 price tag stacks up to about 13 cents a day, which is a small price to pay for expert analysis. Plus, the new deal offers even more bonuses.

There’s a lot to like about the package.

Tim reveals a new dividend-centered trade idea every month, and new members also receive additional research through its complimentary reports. 

Something else I like about the newsletter is Tim’s 20% growth target.

Many competitors target some absurd returns, even in the current down market.

The 20% figure might not sound as appealing as some gurus targeting 200% returns, but the team’s goals and expectations are much more grounded.

Plus, this strategy could double an investment if the position increases by 20% over three years.

All in all, if you’re looking for quality dividend plays with solid upside potential, Tim and the team have you covered.

>> That’s it for my 20% Trader review. Sign up for 75% off HERE <<



Noah is an American copywriter on a mission to help clarify the nuances of the financial world. When he's not working, you’ll likely find him running or traveling.