The Dividend Guy Blog

Unconventional Lifestyle and Dividend Growth Strategy

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Economic Moats: Switching Costs and the Network Effect

Blog, Stock Analysis

Following last week’s article describing the concept of economic moat, we now look at switching costs and the network effect. Both are competitive advantages that protect a company, in other words, that contribute to that company’s economic moat. Switching cost High switching costs make it difficult, costly, or both for customers to switch from one supplier to another. A company enjoying this type of protection is said to have a sticky business model because the switching costs make its …

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Moaty Dividend Stocks to Buy [Podcast]

Blog, Podcast

Initially, a moat is a deep trench around a castle to protect it from invasion and enemies. Nowadays, there are 5 sources of economic moats for companies. They refer to the factors that help a company survive and thrive. Today, we'll explain these sources and give examples of stocks to buy for each. Define Your Strategy and Invest with Conviction. Download the Portfolio Workbook for free. You'll Learn Moat companies are businesses that show solid competitive advantages or some barriers …

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Add Economic Moats to Your Stock Analysis

Blog, Stock Analysis

Adding economic moats to your stock analysis can help you to develop and be confident in your investment thesis, i.e., why a stock is a good pick for your portfolio. A company’s economic moat can also shed light on loser stocks you have and don’t know what to do with. A moat is a ditch, either dry or filled with water, surrounding a castle or town, that acts as a primary line of defense. Historically, moats were used to protect our most precious asset: where we live. The term economic moat …

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Short Selling, Profit Protection, Chowder Rule: What You Need to Know [Podcast]

Blog, Investing Strategy, Podcast

Easy solutions can involve serious risks. Here's what to consider before doing Short Selling, Profit Protection, and the Chowder Rule. Download the Dividend Rock Stars List and Select Stocks Among the Best Assets! Enter your name and email to get the free spreadsheet. You'll Learn Short selling occurs when an investor borrows a security, sells it on the open market, and expects to repurchase it for less money. Why would an investor short-sell its shares? What are the benefits? The …

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Doubling Down on Telus in Smith Manoeuvre – March Dividend Income Report

Blog, Dividend Income Report

In September of 2017, I received slightly over $100K from my former employer, representing the commuted value of my pension plan. I decided to invest 100% of this money in dividend growth stocks. Each month, I publish my results on those investments. I don’t do this to brag. I do this to show my readers that it is possible to build a lasting portfolio during all market conditions. Some months we might appear to underperform, but you must trust the process over the long term to evaluate our …

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CDRs, Are They Really Worth It? [Podcast]

Blog, Investing Strategy, Podcast

It is frustrating to pay currency fees on investment. Many investors feel like a part of their money is lost and useless. Canadian Depositary Receipts (CDRs) have been created to solve that problem. Now the question is, is it too good to be true? You'll Learn A Canadian Depositary Receipt (CDR) is equivalent to US stocks but is traded in CAD. It provides a currency hedge and allows fraction shares. CDRs have been inspired by ADRs (American Depositary Receipts), which have been …

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