What is Dividend Investing?

fts stock history

In your reading this article then congratulations are properly in order.  You’ve worked really hard, saved your money and reached the point where you want to invest your money.  You might even know a little about dividend investing but you still have questions.

What exactly is dividend investing?

How is a dividend growth investing different from every other investment strategy?

Well this article is great introduction to dividend investing and shows you the power dividend through patient long term investing.

The Yakezie Challenge

I recently decided to join the Yakezie Challenge. For those of you who aren’t award the Yakezie Challenge was originally developed by The Fiancial Samurai to develop the personal finance blogging community and the Challenge has caught on like gang busters.

The Goal:

My goal is to reach the top 200,000 as ranked by Alexa. This is going to be each accomplishment. Thereis tremendous competition in the blogosphere and getting my message out there will be a constant battle.

Currently I’m ranked 9,639,483 so I have my work cut out for me.  However by writing 2-3 great posts a week and developing some great relationships with other bloggers out there I’m hoping that I can crack the top 200,000 within 4 months.

For those of you that are looking for more information about the Yakezie Challenge I sugest that a look at their website Yakezie.com. The website is full of great posts by hundreds of different personal finance bloggers.

 

Smart Dividend Growth Blogging Goals

So after launching the Smart Dividend Growth blog back in June I have realized that I’m not producing the quantity or quality of posts that I originally had in mind when I launched the site.  Sadly we had a tragic accident in my office resulting in the death of a coworker and then a week later I was transferred from Vancouver to Newfoundland, Canada.  Needless to say my life hasn’t been the most stable lately.  With the ongoing move to the east coast and an upcoming wedding and honeymoon (did I mentioned that I’m getting married) I will really have a full plate over the next couple of months.  Therefore I decided to sit down and write out my goals for the website so that you (the reader) can hold me accountable.

Top 10 Canadian Dividend Stocks

Smart Dividend Growth has analyzed Canada’s top 100 dividend stocks and narrowed the list down to 10 great companies that will provide a solidreturn on investment for the long-term. Whether you’re just starting out or you’re in the process of rebalancing your portfolio all these stocks should be on your watch list.

 

Are all these stocks in your portfolio?

RY: Can you Bank on their return to Glory?

The Royal Bank of Canada(TSX:RY) has had a rough year and there stock has taken a beating. 

But going forward what is in store for RBC?

Take a look in this week’s Stock Analysis section.

Understanding Your Risk Tolerance

Every investor should understand the fundamental relationship between risk and return.  Sadly however many investor the swept up the current investing fade (see tech bubble, housing bubble and peak oil) or a hot stock tip that got from a friend or so called financial guru on TV. By understanding your risk profile you can develop a long term investment strategy that will keep on the road to success.

An investor’s risk tolerance can vary based on their age, income requirements, their financial goals and knowledge and even their investment time horizon.  For example a 65 year old retiree will typically have a lower risk tolerance then a 28 year old doctor. The retiree is usually focused on protecting their capital investment and ensuring a constant income stream while a young doctor with disposable income is typically focused on growing his investment portfolio for the future.

Weekend Roundup

It is the weekend so I thought you’d love to check some of the great articles that were published on the net this. Enjoy

TSX 60 Dividend Data

Welcome back everybody.  Below you’ll find a list of the TSX 60 and their recent dividend performance.  As you can see, despite all being the biggest companies in Canada each company seems to have a different approach to dividend yield.  While you’re looking at the data try to focus on the sector of the stock vs. the dividend yield.  I will talk more about this important connection in next week’s post “Needs vs. Wants”

In addition to the tracking the 60 largest companies on the Toronto Stock Exchange (TSX 60) I will also be regularly posting data on the S&P 500 Dividend Aristocrats and my own personal dividend watchlist.

Will high yield stocks will cost you in the long run?


Dividend investing has gained popularity as a great way to develop passive income while protecting your initial investment.  However one of the common mistakes that dividend investors make when they start out is that they simply focus on the highest yielding dividend stocks.  The thought process is fairly simple: Company A is yielding 3% and company B is yielding 9% so doesn’t that mean three times the returns? All things being equal the answer is yes however all things are almost never equal. Dividend investors need to learn to balance the risk and rewards of chasing high yield dividend stocks.

I’m a firm believer in dividend investing. I think that it is a great strategy that will provide safe, stable and sustainable growth for the long run provided investors don’t simply chase high yield dividend stocks.  By only focusing on dividend income most investors are forgetting to protect their initial capital investment and they end up exposing their portfolio to too much risk.

What is Dividend Investing?

Dividend investing is a long term “buy and hold” strategy where investors seek out and invest in companies that have a long history of regular dividend cash payment to their shareholders.  The great benefit of dividend investing is that it provides a long term stable stream of passive income. Typically thought of as an investment strategy for the retired, dividend investing primarily focuses on protection of the initial capital investment and generating a continuous stream of income for the future.

 

With the boom in stock prices since over the past decade dividend investing had fallen out of favor by the majority of Wall Street.  In fact massive gains in the stock market had some of the world’s most well know economist asking the question “Is buy and hold dead?” However the financial crisis of 2009 and the resulting mistrust that Main Street has shown towards Wall Street has brought dividend investing back to the forefront.  Considering most economists believe that the economy and even the most of the best performing stocks will be relatively flat over the next 2-5 years it is understandable why dividend investing is getting another look.  After all, isn’t it everyone’s dream to be paid to wait?