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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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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TSX60 Ex-Dividend Date & Dividend Yield
If you have missed the Dividend Guy for the past 2 weeks, you must read the following 2 articles: Canadian Dividend Aristocrats US Dividend Aristocrats I've done an extensive review of dividend aristocrats on both market. Their results over the past 5 years may surprise you. In the past 2 weeks, we had the 6 Canadian Banks reporting their financial results. Besides RBC, most banks beat the analysts expectation and National Bank (NA) increased its dividend by 5% …
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Canadian Aristocrats; They Have it Too!!
Last week, I took a shot at Dividend Aristocrats on theUS side. But did you know that Canadians have Dividend Aristocrats too? Mind you, I’m going to temper your hype right away, the minimum requirements are far from the “original” aristocrats lists. Unfortunately, the Canadian stock market is way smaller and less diversified than the US market. It is actually impossible to find a good amount of stocks that have been increasing their dividend for 25 consecutive …
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