Successful growth by acquisition makes a company grow much faster than it otherwise would. Increased revenue, higher margins and yes, sustained high dividend growth! A look at companies that thrive using this strategy. The strategy is simple: to speed up company growth, build up cash and buy other companies. Get rid of some competition and increase market share, expand in complementary products and markets, and benefit from the resources and expertise of the acquired companies, and the …
Joys and Jitters of Growth by Acquisition
In business, growth by acquisition is like the cool kid at the table - it's flashy, ambitious, and enjoys an elevated status. However, investors beware of the upsides and downsides of this strategy. I always say that offense is the best defense. For that reason, I like growth by acquisition companies. I am cautious however, because the advantages of this strategy come with risks, and not acquisitions are successful. Joys of growth by acquisition First the upsides. Picture this: a company …
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How to Invest a Lump Sum
How to invest a lump sum. What if you buy at an all-time high right before a market crash? It can be an overwhelming anxiety-inducing puzzle. You can mitigate the risks and buy decisively. So, you received an inheritance, sold a cottage or a boat, or ended up with a chunk of cash from dividends paid in your portfolio or from rebalancing your portfolio. Regardless of where the money came from, you want to invest it; but you’re hesitant, you don’t want to make mistakes. You have to come up a …
Deluxe Bonds and Dividend Traps
Deluxe bonds and dividend traps are high-yield stocks. Deluxe bonds can play a useful role in your portfolio, but dividend traps can seriously hurt your retirement. Know the difference between them! After writing at length about the qualities of low-yield, high-growth stocks, and the reasons you should have some, it’s time I offer some insight about high-yield stocks. To be fair, high yield stocks are not all bad investments. Some companies provide a source of high income that is fairly …
Low Yield, High Growth Stocks for your Retirement
Dividend investors, do yourselves a favor, consider low yield, high growth stocks for your retirement. See how focusing on dividend yield alone can cost you a lot. A widely held belief is that we need to build a high-yield portfolio for our retirement, then live off the dividend payments without touching the capital. But is it true? I say no. In fact, I say a high-yield portfolio can hurt your retirement. The case for low yield stocks Let’s start with Alimentation Couche-Tard (ATD.TO,) a …
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Generate Enough Retirement Income from Your Portfolio
When planning for retirement, you want to be sure you’ll generate enough retirement income from your portfolio. As you retire, you still have plenty of years ahead of you. Let’s make sure you don’t outlive your portfolio, shall we? There are two ways to generate income from your portfolio if you are a dividend investor. Let’s look closely at both. Dividend-only Get your income entirely in dividends received from your investments. If you have $800,000 invested and need $30,000 per year, easy! …
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