Since ETFs are so simple, why not select a couple and avoid the hustle of monitoring stock picks? While we often hear what is wrong with dividend investing, the bear case for ETFs is almost nonexistent. Today, we’ll highlight a few things about them that prove they're not perfect and, first and foremost, explain the difference. You'll Learn Exchange-traded funds, or ETFs, are a valid, sound, and reasonable solution for investors. They offer several advantages, the most appealing one …
Problems & Misconceptions about Dividend Investing – How, When, and Why Do Companies Pay Dividends? [Podcast]
There are many problems and misconceptions about dividend investing. Let's help you stay the course by understanding how, when, and why companies pay dividends. Revisiting the mechanics of dividends will destroy your misconceptions and bring you solutions to your problems. You'll Learn A dividend is the distribution of a company’s earnings to its shareholders. But why do companies decide to pay dividends? Who decides about the dividend amount paid? This leads to the first …
Short Selling, Profit Protection, Chowder Rule: What You Need to Know [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 …
CDRs, Are They Really Worth It? [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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Can ETFs and Stocks Coexist in a Portfolio?
Can ETFs and stocks coexist in a portfolio and make that portfolio better? ETF or index ETF investing versus do-it-yourself dividend growth investing is always a big debate. You know I favor stock investing, but I keep an open mind. There is room for ETFs even if you invest in stocks. I see both ETF investing and dividend growth stock investing strategies work very well. Should you put both in your portfolio? It depends. Let’s elaborate. So yes, I see situations in which combining …
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Over Diversification is a Big Problem [Podcast]
Sector allocation and diversification are essential aspects of a portfolio. But sometimes, too much is as hurtful as too little... Let's discuss diworsification, its impacts, and how to maintain a well-balanced portfolio. Download the Dividend Rock Star List and Pick among the Best Assets Only! You'll Learn We must first define good diversification. What does it mean to have a balanced portfolio? Although investing across all 11 sectors is not a problem per se, it could become a …
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