Thursday, December 24, 2020

Future of Dividends

here is an interesting article by Maike Currie in the Financial Post. It would seem that Warren Buffet does not like stocks that pay dividends. He rather the company reinvest in the company than pay dividends. Do not forget that Buffet has varying amount of control over the companies he invests in. Individual shareholders do not. As an individual investor, it is much harder to invest for capital gains compared to investing for dividends.

I like a compromise where dividends are paid, but they are at a low level of DPRs and the company still has money to reinvest. Anything I have read is that company that pay dividends tend to outlast ones that do not. There is nothing like having to pay hard cash as dividends to establish that the company is really making money.

Personally, I have never gone for investing in high yield stocks (or ones with yields 5% or above). This is not the sort I like. These sorts of companies also have a tendency to get into financial difficulties. I like stocks with yields in 2% range and good increases. I also like stocks in 1% range and good increases. I do not go below 1%, as it takes too long, even with good increases, to get a good yield on your original investment.

On my other blog I wrote yesterday about Chartwell Retirement Residences (TSX-CSH.UN, OTC-CWSRF) ... learn more. Next, I will write about Sienna Senior Living Inc (TSX-SIA, OTC- LWSCF) ... learn more on Thursday, December 24, 2020 around 5 pm.

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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

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