This just in; big juicy Canadian dividends beat the market . That was the finding revealed in this Norman Rothery article in the Globe and Mail. I am sorry dividend deniers, it’s not good news. Big Canadian Dividend payers beat the market by some 3.8%, on average per year.
From that Globe article …
And here’s the performance chart …
Now the article suggested that there was good news and bad news. Of course the good news is that market trouncing. The bad news is that the higher yielding dividend group fell more than market in the last Canadian market correction of 2015 and into 2016. But in the other corrections for the period of study those dividend-centric companies held up better than market.
I personally had no problem with those lower prices in that minor correction. In fact I truly enjoyed buying more shares. Those shares and the juicy yields available helped to give my portfolio that final kick. The big dividends and dividend growth helps my current semi-retirement situation.
Bring on those lower prices says this dividend investor.
On Seeking Alpha I wrote on the enjoyment of those lower stock prices and larger yields. These were some of buying opportunities.
And in fact my little juicy Canadian dividend stock basket fell much less than the market in that correction. Perhaps that’s why my market beat isn’t as pronounced from that correction. Those who held the wonderful market index ETFs were offered even lower prices. Does this mean that you should only invest in dividend stocks and dividend ETFs? Absolutely not. Investing is a personal choice. We have to do what makes us feel comfortable. Sticking to your investment plan and adding monies on a regular schedule is more important than the Dividend vs Market debate.
To each his or her own.
There will be lots of ‘yabuts’ offered by those who openly mock Canadian dividend investors. Those higher yielding dividend stock screens are only finding greater profitability or value, or whatever. It’s true many dividend investors may not know exactly why they ARE winning. And more important than the numbers, those dividends help investors stay focused. Those dividends are a source of constant reinforcement with dividends being more predictable than market price swings.
Fire away in the comment section. Are your Canadian dividends stocks beating the market?
Weekend reads and follows.
I’ll kick it off, not with an article or podcast link but a ‘who to follow’. I always enjoy these two US bloggers who are early retirees. They made it happen in completely different ways. But the end result is financial freedom and some form of early retirement.
Here’s Fritz’s The Retirement Manifesto.
And from Panama Jim’s Route to Retire.
I know you’ll enjoy following their adventures.
If you want to check in on the Canadian FIRE blogger scene you can have a read of GenYMoney’s round up of rich Canadian bloggers. You can be sure you won’t find my name on those types of lists.
Milliondollarjourey offered this very solid article on the use of GICs vs Bonds.
Rob Carrick of the Globe and Mail looks at the stats of TFSA use in Canada. That is a wonderful program that many Canadians use, but not to the fullest. That article is packed with many interesting insights.
The country’s 19.5 million individual TFSAs had a total fair market value of $277-billion as of 2017, up an impressive 19 per cent over the previous year.
That’s a very significant amount of monies. I think we should take full advantage of the Tax Free program but I previously questioned whether CRA might eventually tax that program in some way.
On the TFSA program savvynewcanadians offered the many ways to make best use of that tax free opportunity.
Robb Engen had offered this very important look at folks kicking debt down the road.
Mark of myownadvisor offered his latest dividend update. His goal is to earn $19,400 in dividend income for 2019. Stay tuned.
Here’s sixth sense or nonsense on the findependencehub. And from that post …
From the land of Robo’s.
Wealthsimple announced that it will sell off the advisory referral business. They will concentrate on that direct to consumer channel.
And on the Robo returns watch Justwealth posted their performance numbers to end of November 2019. Those returns include their RESP target date portfolios.
You can check in on and compare Wealthsimple returns here .
And here’s the most incredible look at risk and returns history table, courtesy of Paul Merriman. That table frames the risk and returns history of US stock and bonds with multiple risk-level allocations. I could look at that table all day, I might. Again.
This week I offered one of my most popular posts of the year on the wonderful development of advice-only planners. I followed up with – do you really need a financial planner? I do suggest that at some point we can all benefit from expert financial planning.
Thanks for reading. We’ll see you in the comment section.
Help yourself, support Cut The Crap Investing.
While I do not accept monies for feature blog posts please click here on the mission and ‘how I might get paid’ disclosures. Affiliate partnerships help me pay the bills for this site. That will allow me to keep this site free of ads, and hence, easy to read.
Check out EQ Bank for those who want to make their cash work a lot harder. The current high interest savings account rate is 1.5%. EQ Bank recently introduced RRSP and TFSA accounts with a rate of 2.3%. You’ll also find GICs.
I also have partnerships with several of the leading Canadian Robo Advisors such as Justwealth, BMO Smartfolio ,Wealthsimple and Questwealth from Questrade.
At Questrade Canadians can buy ETFs for free.
Thanks for reading, we’ll see you in the comment section.
Dale
