Blog

Inflation protection

What is inflation? Inflation is essentially the rate at which the cost of living increases. What you could buy ten years ago for $100 now costs $125. Inflation decreases value Historically, inflation rates in Canada have averaged between 2 – […]

Why does BTSX work?

Why is the BTSX strategy so powerful? Large stable companies The TSX 60 is an index composed of the largest companies in Canada Many (most?) of the companies that end up on the BTSX have what Warren Buffet would call […]

BTSX results

A 30+ year track record As of the end of 2020, the 30 year average rate of return using the “Beating the TSX” method was 11.41%. To put this in context, the benchmark index rate of return was 9.19% over […]

Stock selection method

Most retail investors – people like you and me – pay fees to financial planners who invest their money in expensive actively managed mutual funds that ultimately underperform the market. The ideal investing strategy is exactly the opposite:  simple, low-cost, […]

Disclaimer and policies

DividendStrategy.ca is presented as an educational resource and should not be construed as individualized investment advice, nor as a recommendation to buy or sell specific securities. The funds and portfolios discussed on the site are examples only and may not […]

About me

I am a forty-something husband, father and DIY investor.  Like most DIY investors I had to make some mistakes before I found a system that works.  For me, that is a dividend-based approach to investing. I wasn’t always a good […]

Superior returns

Can a DIY investor achieve superior returns than the index? The simple answer is a confident YES when a strategy of dividend investing is employed.  Here is the evidence. Dividends drive stock market returns Dividends are a major component of […]

Tax efficient income

Are dividends tax efficient? Dividends can be extremely tax efficient because of something called the Canadian Dividend Tax Credit.  For someone in the highest tax bracket, $1000 of regular income would be taxed at 50%. Interest (bonds, GICs) is also […]

Important details

So, I should buy companies with the highest dividends, right? Not so fast. There is something called the “dividend trap” which refers to the act of buying a stock for the high dividend then getting caught when the dividend is […]