Thursday, November 18, 2010

Canadian Banks to Raise Dividends Soon?

Cameron French of the globeandmail writes an article on the possibility of Canadian banks resuming dividend increases shortly after a two year absence.

"Canadian banks are set to begin resuming dividend hikes after a two-year pause, a move that would signal a turning of the page from the financial crisis, although the pace of increases could be more subdued than in years past. While only one or two of the country’s lenders are likely to raise their payout when fourth-quarter reporting season begins at the end of the month, others are expected to follow next year."

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Monday, November 1, 2010

Paying Yourself with Dividends

David Milstead with the globeandmail talks with investor Carl Jacobson about his strategy for retirement and exclusion of RRSP's for dividends.

"...Mr. Jacobson has found his greatest tax advantage lies in paying himself through dividends, not salary, and leaving the money that would normally go into a RRSP in his corporation, where it can be reinvested."

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Monday, September 20, 2010

Dogs of the Dow Dividend Returns

John Waggoner of USA Today writes an article on the topic of the investing strategy known as the Dogs of the Dow and discusses the incentive for dividend investors looking for income in the bottom half of performers of the well known index.

"But today, investors are starved for income, and high-yielding, relatively high-quality stocks are in fashion. The average money market mutual fund yields 0.04%, says iMoneyNet, which tracks the funds. A 10-year Treasury note yields 2.76%."

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Wednesday, July 7, 2010

Consistent Cashflow & Dividends

Steve Proceviat of the Globe&Mail interviews Toron Capital Markets portfolio manager David Driscoll about a long-term dividend payer Novo-Nordisk discussing the advantage of holding good dividend paying stocks year after year.

"It’s important to invest in the company and not trade stock prices. If you have a good quality company, and the market’s falling because of macroeconomic conditions, not because of business risk, then [you should] feel comfortable, because they pay the dividend, to continue to buy more.  You don’t have to trade actively to make money."

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Monday, March 29, 2010

Canadian Dividend Stocks & Higher Interest Rates

Jonathan Ratner of the Financial Post writes a column discussing the influence of higher interest rates on Canadian dividend paying stocks.  While higher rates influence stock valuations the question of how they'll effect dividends this time has been a highly talked about topic.

"In the six months prior to the last 13 tightening cycles (between 1956 and the middle of 2004), he found that Canadian stocks historically provided average annualized returns of 22% (including dividends and capital gains). In the six months following a rate trough, Canadian stocks returned 8.3% in annualized terms.  While higher dividend sector do tend to be more impacted by rising rates, the economist noted that telecom stocks are an exception."

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Monday, February 22, 2010

Are Preferred Shares Set for a Shake Up?

Rob Carrick of Globe Investor writes a piece on preferred shares asking the question of how future inflation might shake up sleepy preferreds in your portfolio highlighting the behaviour of both fixed rate resets and perpetuals.

"There's bad news for all investors who held preferred shares through the past two years of turbulence and are looking ahead to calmer times. Higher interest rates are coming, and that means more upset for preferred shares. Plan now and avoid any unpleasantness to come. Preferred shares are a more conservative version of the common shares that most people think of when the stock market comes to mind. Preferred shares fluctuate somewhat less in price and are primarily owned by people who want a reliable flow of dividend income."

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Wednesday, February 10, 2010

Dividends and Defense to Lead Growth?

Mark Noble of writes an article on the topic of dividends and potential upside in 2010 with healthcare and consumer staples getting a specific mention.

"As the stock market recovery begins to mature, investors increasingly focus attention on the sectors and companies that demonstrate more consistent sales, earnings and dividend growth. We believe we are now in the early stages of this shift, another part of a rotation of market leadership," says Gorman. "As part of this trend, investors will increasingly emphasize dividends as a larger element of total return. Today, dividends in a number of sectors are abnormally high relative to bond yields, even before considering the dividend tax credit, which makes each dollar in Canadian dividends like earning $1.30 in interest."

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Thursday, January 7, 2010

Why Dividend ETFs Will Make You Richer

John Heinzl takes the time to answer the questions of readers in the Globe&Mail's Investor Clinic video series discussing dividend ETF's.

"...the great thing about ETF's is that they provide a diversification of a mutual fund but with much lower fees..."

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