Is a 16.8% Dividend Sustainable?

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 …

Read more

The Credit Card Industry: Dividend Yields Worth Pursuing?

This is a guest post by Michael Dolen, who runs Credit Card Forum, a website for credit card deals & discussion. For many Americans and Canadians, credit cards have become a way of life. By that I don’t necessarily mean for carrying debt (most don’t) but rather using them to pay for practically everything. I definitely fall into that category… it’s not uncommon for several weeks or even months to go by without ever spending cash. From a lending perspective, that lifestyle isn’t attractive when there’s no balance is carried and hence, no interest paid. However on the flip-side, it’s …

Read more

Investing During Market Declines

The recent and sudden market slide had nearly all investors caught off guard. Although markets appear to be rebounding, some investors are feeling stunned and discouraged. Others feel like little kids in a candy-store, buying everything in the bargain bin. For those retirees who were decimated during the 2008-2009 financial crisis, another severe market decline or double-dip recession may just be too much. According to a recent Globe & Mail article, some of the wealthiest investors have already thrown in the towel. I’m here to tell you otherwise. Don’t Panic Market declines are part of the process of investing in …

Read more

Before You Backup the Truck

IKEA makes great commercials! My favourite is where the middle-aged couple are running out the exit with their goods, while the lady is yelling to her husband “get the car, get the car!”  She’s gotten such a good deal at IKEA she is just beside herself with frenzy, because she can’t believe it’s true. Investors also realize the stock market is a bargain, after two days of massive declines. They are also bargain hunting with frenzy. And that’s a good thing. Other investors may be frozen in fear, or even worse selling their equities. It’s the smart ones who swoop …

Read more