A dividend cut is the worst things that could happen to a dividend investor. Sometimes, management decides to break their promise and fails their shareholders by slashing their dividend payment. When such an event happens, we are left with a big hole in our portfolio. A dividend cut is not only a reduction of your revenue, but also leads to a capital loss. There are techniques to avoid dividend cuts, but no strategy is perfect. We can all suffer from a dividend cut. Today, I’ll discuss how I …
Video of the Week : Find Sustainable Growth
Years of doing research, reading academic studies and working on portfolios (including mine) brought me to this set of rules that enables me to simplify my investing process. Principle 3 - Find sustainable Dividend Growth. It is one thing for a company to show growth in the past, but is it able to continue doing so? The payout ratio is a popular metric among investors to determine growth. However, it is important to understand the trend behind the number! Video If you enjoy the …
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January 2019 Dividend Income Report, A Trade and +14% Divvy Increase
In September 2017, I received slightly over $100K as a result of the commuted value of my pension plan. I decided to invest 100% of this money into dividend growth stocks. Each month, I publish my results. I don’t do this to brag, I do this to show you it’s possible to build a portfolio during an all-time high market. The market will crash... eventually. In the meantime, I rather cash some juicy dividends! Portfolio holdings – Let’s start the year with a BANG! When we started January, I …
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Video of the Week: Focus on Dividend Growth
Years of doing research, reading academic studies and working on portfolios (including mine) brought me to this set of rules that enables me to simplify my investing process. Principle 2 - Focus on Dividend Growth. Why? Because Dividend Growth Stocks beat the market most of the time and represent your best protection against marke drops! Video If you enjoy the videos format and want more of them, subscribe to my YouTube channel! Verbatim 00:00 Mike Heroux: Hey, fellow …
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Video of the Week: High Yield Doesn’t Equal High Return
Years of doing research, reading academic studies and working on portfolios (including mine) brought me to this set of rules that enables me to simplify my investing process. Principle 1 - High Yield doesn't Equal High Return: always remember that there is no free lunch in finance. A 5+% yield is often a red flag in a company! Video If you enjoy the videos format and want more of them, subscribe to my YouTube channel! Verbatim 00:01 Mike Heroux: Hey, fellow investors. This is Mike Heroux …
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What Happens When You Hit a Correction As a Dividend Growth Investor? Nothing!
Everybody will agree that 2018 was an “annus horribilis” on the market. The year-end results haven’t been that bad with the S&P 500 total return of -4.38%, but the Ultra-Bear cult would rather remind us that the S&P 500 lost 19.2% between September 20th and December 24th (bear lovers always have the super power to identify weird dates and ignore dividend payments to prove their point, don’t you think?). On the Canadian market, the TSX shows -11.6% for the year, but if you use the …
