High Yield Stocks

The Lure and Dangers of High Yield Stocks – What You Need to Know

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This article was published in the Canadian MoneySaver and is posted here with permission. For more information visit www.canadianmoneysaver.ca Most investors would never buy a corporate bond yielding 10%. They would understand that a high yield in this low-interest rate environment would be a risky investment. They would likely lose some or all of their investment. But many investors who do not understand the risks of high yield will buy dividend stocks paying 8% or 10%+ yields, double or triple what blue chips are currently paying at 3% to 4.5%. While high-yield stocks are not junk bonds, they do inherently carry …

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Four Key Dividend Metrics You Need to Know

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This article was published in the May 2014 edition of the Canadian MoneySaver, and is posted here with permission. For more information visit www.canadianmoneysaver.ca Although dividend investing can seem overwhelming and complicated, it really doesn’t need to be. Nor do you need to be a financial professional or CPA to make sense of it all. A few red-flags to watch out for, as well as specific ratios to look at, will help you buy a dividend titan instead of a dividend dud. Here are four key dividend metrics I look at, when initially screening dividend stocks: Dividend Yield The dividend …

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Bacon Wrapped Hotdogs and Enticing Yields

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Written by: Wealth Effect Blogger Waiting outside the football stadium after every home University of Southern California football game, is a row of street vendors eager to sell their bacon wrapped hotdogs they are grilling along with onions and peppers right in front of you. The smell of all that bacon cooking is simply intoxicating. Then they start calling out to you “Hotdogs! Get your bacon wrapped hotdogs! Hotdogs! Get your bacon wrapped hotdogs!” and it makes you want it even more, even if you’re not hungry. (For those of you who are not fans of hot dogs or bacon …

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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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