Wednesday, May 29, 2013

Income and Portfolio Building

Looking over the built up of my portfolio I can see how important income generated by my investments were. Of course, when I was starting to build my portfolio, interest rates were quite high. Interest rates peaked at just over 19%. I had stocks also, but the real money was in interest. I had some bonds, GICs and mortgage mutual funds.

Even as recent as the early 1990's you could get GICs with 10% plus interest rates. However, times have changed. The place to make income today is in dividend growth companies. I have talked about this a number of times and looked at Dividend Yields on Original Investments. Nothing beats Canadian Banks on good yields and good growth in dividends.

If you have a company which is increasing their dividends, one way of looking at what you are earning is to determine what your yield is on your original investment money. I expect that most of my income will come from such stocks now and into the future still.

I do not currently expect much for capital gains as we are in a secular bear market and this will be around for a while. It is like the 1970's when the stock market just seem to only go sideways for a long time.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.

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