I feel like I have been talking about this a lot lately, but I was entering some dividend payments I recently received into Microsoft Money and say the dramatic effect of reinvesting dividend payments. I am going to take one of my stocks as an example and show you what has happened over time. The following chart shows the various dividend payments I have received from one of my best holdings - RBC Royal Bank (RY.to). You will notice that over time the dividends that I receive has been …
2 Mistakes an Investor Can Make
I was recently surfin' some investing message boards and came across a great summary of the investment process. More specifically, it was a very simple description of the two kinds of mistakes an investor can make. It really hit home with me. When you filter the investment process down to its most basic level, there really is only two things that can make a good plan go completely haywire. The two kinds of mistakes one can make in investing are: 1) Not buying a company that one should …
Disclaimer
Thank you for visiting my TheDividendGuyBlog.com. Financial decisions are among the most important lifetime decisions to most people, and I hope by sharing my experience, more people can start to make better personal finance decisions. TheDividendGuyBlog.com is a free service to everybody, and as I don't receive anything from you nor promise anything to you, I disclaim any liabilities whatsoever from your decisions based influenced by this site. Furthermore, if you use any information in this …
Procrastination Sucks – Don’t Do It
There was a good article over at The Globe and Mail that covered the problem with procrastination quite well. It gave an example of two investors, who contributed money to their investments at different stages of their lives. It is a classic example when investors talk about the time value of money simply because the outcome is so clear. Here is what the article said: Consider the story of two investors. Ernest has always been a "do-it-now" kind of person. He decided to start saving for …
Covered Calls – Too Risky?
I have been doing some reading recently on the concept of Covered Calls as a way to generate income from your portfolio. To describe what this is, I cannot do any better than Investopedia.com has: An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate increased income from the asset. This is often employed when an investor has a short-term neutral view on the asset and for this reason hold the …
Where to Get Financial Data
When analyzing a stock there is a ton of research available on the web that can really help. Last night I went through all the sites that I have used in the past and have listed some of them here. Keep in mind that there are a few sites that provide the same data - I use these different sites to try to verify the data that the web sites present. I have found inconsistent data in the past and seeing this has allowed me to dig a little further to get the real data. Some of the sites I have …
