This is probably the toughest question an investor must answer: How long do I hold my stock? When you are making a paper profit, feel that you have selected the right stock and want to keep it. You certainly don’t want to cash out your 10%-20% profit and realize that your stock will do as well as MCD for the past 10 years! On the other hand, when you are have a paper loss, feel that you have selected the right stock and you want to keep it… Wait, I …
Can You Afford 7% Interest on Your Debt?
There is something both quite scary and interesting happening these days on the market: the direction of interest rates. Regardless if you are living in the US or in Canada, you are currently getting the deal of the decade (or the century?) in terms of low interest rates. If you borrow for a mortgage, nobody will mention rates around 5% or 6%. Depending on the term, you will be looking at a 3% to 4% interest rates. And if you are looking short term, you can even get below …
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The Consequence of Oil Prices on Dividend Stocks
Today, let’s go back in time. Let’s go back to when Canadian Oil Income Trusts were among investor’s favorite picks. It was not only for Canadians but for Americans too. In fact, everybody benefited back then from the generous payout ratio doubled by extra tax exemptions for investors “who were there to encourage the oil sand industry”. I started investing in that period. This was a time where you could easily find an oil income trust paying a 10% dividend yield. In …
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The Investing Fee That Makes a $300,000 Difference
My best friend and I are both passionate about investing. We spend several hours a week reading, talking and debating finance topics. But among all financial topics, investing is definitely the most interesting! We recently had a debate about investment strategies with mutual funds (or discretionary investments) Vs ETF investing. We both wanted to know what is the real difference in an investor’s pockets between managing his own funds and paying someone to do it …
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Covered Call ETF Vs Pure Dividend Stocks
About a year ago, I bought a Covered Call ETF: ZWB: BMO Covered Call ETF Canadian Banks (click here for the detail of my trade on ZWB). When I first bought it, the covered call ETF was a relatively new “financial invention” in Canada. I thought it was really interesting to have an ETF that was able to track the 6 strongest banks in the world while paying a higher dividend. At the time of the purchase, I think the dividend yield was roughly 10%. The main goal of …
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11 Surging Dividend Stocks That May Continue Their Ride
In the past 2 weeks, I reviewed the Dividend Aristocrats along with the Canadian Dividend Aristocrats. I wanted to know what they have been up to for the past 5 years. This gave me another idea: what about this year? Which dividend stocks are rocking since the beginning of the year? Back in March, I would have had a long list to go through since we had a booming start of the year. Since then, the market got cold and some best performing stocks went back to …
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