Thursday, June 10, 2021

My Investing

I do a specific sort of investing. I am investing to have dividend income. Therefore, I look for dividend growth stocks. I try to buy them at a reasonable price. The price you pay affects your long term gains and income. There is a trade-off between dividend yields and dividend growth. I am willing to sacrifice current yield for growth. However, I never buy one where the current yield is less than 1%. It takes too long to make a more reasonable return (yield on original cost). I also have stocks with different combinations of yield and growth.

I never go after anything with a very high yield (more than 6%) unless we are in a bear market. I have little in resource (i.e., oil and gas) or material (i.e., gold, metals) stocks basically. They are less an 1% of my portfolio. This is Canada, so you need to know what these sectors are doing. This is why I follow some resource stocks. I do not buy airplane companies (i.e., Air Canada). I do not buy restaurant stocks (i.e., Pizza Pizza Royalty Corp). These are not the sort of stocks you can buy and hold forever.

Most of the dividend growth stocks are listed on the Canadian Dividend Aristocrat. The blogger Dan Kent of Stocks Trades Canada on shows this list on his site. See the end of the posting. It is not a bad list. However, for all the stocks in this list you need to check for two things. Can they afford their dividends? Best test in Dividend Payout Ratio for Earnings per Share (EPS). The other thing to check for is level of debt. Some industries, like utilities, tend to have a lot of debt (i.e., Pipelines).

Also, the blogger on Dividend Growth Investing & Retirement gives out a good spreadsheet on Canadian Dividend All-Star List. However, you have to sign up to his site to get access to it.

On my other blog I wrote yesterday about Maxar Technologies Ltd (TSX-MAXR, NYSE-MAXR) ... learn more. Next, I will write about Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN) ... learn more on Friday, June 11, 2021 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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