Taking a look at Canadian Stock Pickers Who Choose Dividend Growth.

While most investors choose to invest in funds there are many investors, and I’d suggest a growing number, who self-direct. That is they take it upon themselves to purchase their own ETFs or stocks and that enables them to keep their fees at a rock-bottom level. With an ETF Portfolio you might create a portfolio with annual fees below .20%. If you have a healthy stock portfolio, and limit your trades you might have a personal MER of .0005 or less, almost non-existent.

One should make sure that they are emotionally equipped to manage their own portfolio, and have a certain level of investment knowledge. Though you certainly do not need to be an investment expert. On self-directed vs a managed portfolio please have a read of Should You Create an ETF Portfolio or go Robo with a Canadian Robo Advisor? The crux is, if you don’t know what you’re doing, don’t do it. Seek help! You’ll need a managed portfolio or the help of a fee-for-service advisor.

Who are these dividend investors? 

One investor who is placing his money on dividend growth investing and is also putting his experience on display is Mark Seed who operates My Own Advisor. Here is Mark’s January Dividend Update. And here’s a chart that shows the Dividend Journey.

Dividend Income December 2018

Highlighted in yellow is the amount of annual dividends received. Of course you can read Mark’s blog for more details on the goals and progress made over the years. Here’s an example of the Canadian holdings. From myownadvisor.ca …

Most of the same stocks in the big mutual funds and ETFs of course.  Look at huge ETFs like XIU and XEI and VDY.  They own the very same stocks in different amounts!

  • These are banks (examples:  RY, TD, BNS, BMO, CM, NA).
  • These are insurance companies (examples:  SLF, MFC, GWO).
  • These are pipeline companies (examples:  ENB, TRP, IPL).
  • These are telecommunications companies (examples:  BCE, T).
  • These are energy companies (like SU).
  • These are utilities (examples:  FTS, EMA, AQN, CU, CPX, INE, BEP.UN).

Nothing too fancy, Mark is a patient investor, he does not react to market noise or conditions. He simply invests new monies and dividends back into his companies on a regular schedule. Simplicity works.

On myownadvisor Mark also tracks the success of several other Canadian dividend investors. Here’s Why Living Off Of The Dividends Still Works For Me where we check in on the success of Bob Lai who operates the site tawcan.com. Once again the personal investment journey is on display.

You’ll also enjoy checking in with Mike The Dividend Guy. It’s an inspiring tale as Mike left his full-time investment advisor position to first travel with family and then operate his very successful blog.

Mike The Dividend Guy

Another popular writer and dividend investor is Rob of PassiveCanadianIncome. A great resource with inclusive lists and ratings is Dividend Growth & Retirement.

You can also check in on …

MonsieurDividende 

Dividend Earner

Financialuproar

John Heinzl

Norman Rothery

From Norman’s Dividend pages on MoneySense, here’s the long-term performance vs the market(s) for his top-listed picks. Take that dividend deniers. We’ll be back for you later in future posts 🙂

This is why many Canadians embrace dividends.

Norm Rothery Performance

If you want a managed portfolio of Canadian, US and International Dividend Growth stocks you might have a read of The Tangerine Big Juicy Dividend Edition.

Weekend Reads From Around the Blogosphere. 

I’ll be selfish and start with my interview with Randy Cass of Nest Wealth and a look at the tipping point for the Canadian Robo Advisors.

Nest Wealth Guy

There’s always a great linkfest on My Own Advisor. Boomer and echo offered CarGurus vs Unhaggle: A Hassle Free Car Buying Comparison. And of course there’s fresh content most every day on FindependenceHub.

I liked this piece in the Globe Taxing the rich; finding the sweet spot in the tax debate. Maybe I like it because I’m not rich? I have a tax avoidance strategy, I generally avoid making money. Of course our largest trading partner, the US, has cut taxes while Canada heads in another direction. From the article …

The U.S. cuts have given business groups and business-friendly think tanks in Canada new ammunition in the tax fight. The Fraser Institute and others say the country is losing competitiveness. Some of the best, brightest and most productive citizens, as well as potential immigrants, will head to the tax nirvana over the border, tax-cut advocates say.

They point to weak business investment, and note the extraordinarily large portion of the bill the wealthy already pay. The top 3 percent of tax filers pay about one-third of all the personal income taxes sent to Ottawa.

3 percent of tax filers paying 33 percent of the taxes is truly incredible. Please feel to fire away in comment section whether you feel that is fair or scandalous. Also, it may not be ‘smart’ economic policy.

And on MoneySense, here’s something I will not likely have to deal with… What happens to extra RESP money after the kids finish university? My kids should be very capable of spending most of it. That said, my daughter is finishing up her undergrad in a few weeks and there is a very decent balance in her RESP. My son starts University in September. It’s very important to understand the nuances of this program.

And I had a ton of fun on Seeking Alpha this week with If I Could Only Own 10 Companies, Here’s What I’d Do. There are well over 100 comments on that post.

Thanks for reading. Kindly hit those share buttons for Twitter, Facebook and LinkedIn at the bottom on this article. You can Follow Cut The Crap Investing at the very bottom of this page.

While I do not accept monies for feature blogs please click here for more about Dale and ‘how I might get paid’ disclosures.

Questions to Dale cutthecrapinvesting@gmail.com or better yet leave a comment on this post.

3 thoughts

  1. Another good article Dale.

    I was a confirmed index ETF investor after reading the Canadian Coach Potato blog for years. But once I was nearing retirement I could not reconcile selling any of my ETF’s to fund my retirement. The solution for me was to move into high dividend funds. Now I live off my m monthly dividends. The high dividend ETF’s
    screen for stocks with above- average dividend yields and steady or increasing dividends so the dividend growth part is also considered.

    Marko

    Liked by 2 people

    1. Thanks Marko, I simply wanted to introduce Cut The Crap readers to the dividend gang and concept. Many are already acquainted of course. There’s a great opportunity in Canada to create some nice yield and dividend growth. At the same time, the dividends don’t have to matter if we manage the sequence of returns risk with bonds and other non correlated assets. Retirement funding success comes down to the total portfolio growth and risk level. And some US and perhaps International ‘should’ be in the mix.

      But I understand the desire to have to spending needs covered by the income. It can be a bit of a trap though if it makes us avoid some companies that perhaps that are lower yield but perhaps of greater quality than a higher yielder. It might make us go light on some needed sector diversification that’s not higher yielding.

      Like

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