High Yield Canadian Stocks: Part 1

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. …

Read more

The Power of Preferred Shares

Preferred shares are often overlooked by dividend investors because of their lower growth rate as compared to common shares.  Since they have a higher dividend yield, and preferred shareholders have rights to dividends over common shareholders, they certainly are worth looking into. The key point is preferred shareholders give up their voting rights in favour of a higher yield. In addition preferred shares are more complex than common stock, and have similar characteristics to corporate bonds that make purchasing them also more complex.  However if you like high dividend yield with less market volatility, then preferred shares can make an …

Read more

Creating Monthly Dividend Income

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 …

Read more

Back to Basics (Fed Up with Mutual Funds)

I received an email from a reader this afternoon. Like anyone who invested in mutual funds for years, they discovered  they weren’t making money. Surprise! They wrote how “Fed up with Mutual Funds” they were, but didn’t know how to get started in Dividend Investing. There are so many questions for the new Dividend Investor. If you have been investing in mutual funds, then a lot of this can seem complex and overwhelming. But once you make the start you are well on the road to keeping your own money and getting paid regular dividends, instead of paying mutual fund …

Read more