Dividend Investing

Using Dividends For Passive Income In Retirement

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written by Hank Coleman My father-in-law was a bank executive for over thirty years at a large regional bank in the United States, and he amassed quite a bit of his company’s stock through options over his career. Now, in addition to his pension, he also has quarterly dividends that support him in retirement. That is the beauty of dividends. They are truly a passive income investment in most cases, and they can often help you to get more out of your finite investment resources than other options allowing you to more efficiently save for retirement. How Much Do You …

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Is a 16.8% Dividend Sustainable?

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Last week I received a couple of great questions, and I felt they were important enough to share with readers. So with permission, I’ve posted one of the questions today, and I will post the other next week. I also invite your discussion, since ultimately we are all here to learn! Is a 16.8% Dividend Sustainable? Question: Given the low payout ratio of 58% and a P/E of 3.29 would now be a good time to stock up on Chorus Aviation (CHR.B-T)? Do you think the 16.8% dividend is sustainable? What might be the problem in the future? Seems too …

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High Yield Canadian Stocks: Part 1

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Who says you can’t have your cake and eat it to? The adage goes that higher yield = higher risk. To a degree that is quite true. Invest in a company with high debt, a 140% Dividend Payout Ratio, 13% yield and you are looking for trouble. But you can invest in Canadian companies (some well known) with yields of 5% to 10% that have solid balance sheets. Take BCE for example, which has a 5.60% yield and is one of Canada’s leading telecoms and wireless providers. Canada has many high yield dividend stocks and trusts, many are obviously risky. …

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Creating Monthly Dividend Income

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Dividend Investors all share the same goal – to obtain a passive revenue stream from dividend income.  The combination of both consistent dividend payments (say 3% to 4% average), and the potential capital appreciation of those investments is a winning strategy. Every dividend investor has his or her own strategy. My strategy is more of a value play. I like to obtain stocks that are near their 52 week lows, have been punished for bad earnings or unforeseen events (Bad News Investing), and have low PE and LE ratios. But the end result is the same for most dividend investors …

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